Sec. 4. Preventing unemployment compensation fraud through data matching
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/bill/118/hr/1163/eh/section-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
As a condition for the eligibility of a State to implement the exceptions to the withdrawal standard described in subparagraphs
(H)and
(I)of section 3304(a)(4) of the Internal Revenue Code, the State shall certify each of the following: The State uses the system designated by the Secretary of Labor (or another system at the discretion of the State) for cross-matching claimants of unemployment compensation to prevent and detect fraud and improper payments. The State has established procedures to do the following: Use the National Directory of New Hires established under section 453(i) of the Social Security Act— to compare information in such Directory against information about individuals claiming unemployment compensation to identify any such individuals who may have become employed; to take timely action to verify whether the individuals identified pursuant to clause
(i)are employed; and upon verification pursuant to clause (ii), to take appropriate action to suspend or modify unemployment compensation payments, and to initiate recovery of any improper payments that have been made. Use the State Information Data Exchange System (or another system at the discretion of the State) to facilitate employer responses to requests for information from State workforce agencies. Seek information from the Commissioner of Social Security under sections 202(x)(3)(B)(iv) and 1611(e)(1)(I)(iii) of the Social Security Act, or from such other sources as the State agency determines appropriate, to obtain the information necessary to carry out the provisions of a State law under which an individual who is confined in a jail, prison, or other penal institution or correctional facility is ineligible for unemployment compensation on account of such individuals inability to satisfy the requirement under section 303(a)(12) of such Act. Compare information of individuals claiming unemployment compensation against the information regarding deceased individuals furnished to or maintained by the Commissioner of Social Security under section 205(r) of the Social Security Act. For the purposes of this section, any reference to unemployment compensation shall be considered to refer to compensation as defined in section 3306 of the Internal Revenue Code of 1986.