Digging for Dollars DOL Data Mining for Employers Paying Under Table Not Unsafe Workplaces

Is it possible the United States Department of Labor (DOL) is looking for more than unsafe workplaces as mentioned in Robert Elliott's last blog? Is it possible the DOL is using computer searches to identify employers with unusually high accident rates. The stated purpose is to locate workplaces with especially unsafe conditions. Once identified the employer and premises are investigated.

 

The investigation soon turns to objective evidence of the size of the workforce and the true payroll. At this point, the DOL may well have uncovered an employer paying most of its workers “off the books” thus achieving large tax savings on Social Security payments, workers’ comp premiums, and other taxes, expenses, and charges.

 

The DOL, like the IRS, knows premium fraud, when detected, inevitably leads to tax fraud. Concealment of workers and wages comes apart with the “experience modifier” which is, roughly, the ratio of a business’ payments for injury as compared to an average business of that type and size.

In order to skirt past the investigators, the employer conceals payments for medical and lost time. All this does is sink the employer into an ever deepening tar pit of fraudulent statements to federal and state tax, safety, and workers’ comp authorities. (workersxzcompxzkit)

In short, this is the new age of computer information and its consequences.

Author: Attorney Theodore Ronca is a practicing lawyer from Aquebogue, NY. He is a frequent writer and speaker, and has represented employers in the areas of workers' compensation, Social Security disability, employee disability plans, and subrogation for over 30 years. Attorney Ronca can be reached at 631-722-2100.

 

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