After Massachusetts unemployment rates reached a high of 17% during the COVID pandemic, unemployment is now at 3.5% as of July 2024, and unemployment fraud has leveled off — in large part due to heightened employer awareness and stronger anti-fraud detection now in place at the Department of Unemployment Assistance.
Municipalities should remain vigilant, however, according to Nancy Fermano, a MIIA management consultant.
“It’s crucial to maintain effective unemployment management strategies and to audit monthly benefit charge statements thoroughly, as they can include calculation errors and overcharges that need to be corrected,” she said. During fiscal 2024 (July 1, 2023, through June 30, 2024), MIIA’s Unemployment Services Program processed more than 1,000 benefit charge protests for its 227 participating member municipalities, including the identification of 192 fraudulent claims, resulting in $1.7 million in benefit charge credits back to members.
Many municipalities work with unemployment partner programs, such as MIIA’s, to help manage the claims process. In addition to overall program administration and statement reviews, a contracted partner can help ensure that any protests are filed in time to meet the state’s strict deadlines.
“When an unemployment services program expert goes through all of the review steps, it is very likely that the employer will see improved unemployment practices and a net savings going forward,” Fermano said. “The ultimate goal of MIIA’s program is to support participating member employers in their timely and accurate payment of eligible unemployment claims and eliminate fraud in that process.”
MIIA partners with First Nonprofit Companies and Unemployment Tax Management Corporation to provide comprehensive unemployment services, including program administration, claims processing, benefit charge auditing, fraud detection, hearings and appeals support, and education and training.
