Unemployment Fraud

[chanel]

If the state's Unemployment Insurance (UI) Fund falls below a certain threshold in March, an automatic tax increase on New Jersey businesses will kick in. Governor Chris Christie says there may be no way to avoid that tax hike.

"While we'll look for some temporary relief from the federal government in the end we're going top have to deal with our own business here and the statute requires a tax increase," explains Christie. "If we get assistance from the federal government there still will be some measure of tax increase. The question: how much?"

Employers could see an increase of up to $1,000 per employee in their unemployment tax starting July 1 unless the fund is infused with state or federal money. The hike is triggered by a growing shortfall in the UI Fund. Business taxes are increased by law when the fund's balance dips below a certain level as measured every March. Christie says the fund will be $1.6 billion in debt by March.

Fraud is rampant in NJ. For many people in this area, seasonal unemployment is a career choice, and getting paid under the table is commonplace. Do any states have "lifetime caps" on UI?