State Re-Employment Fraud

Forging Signatures on Department of Revenue State Re-employment applications. Better known as (SUI) apps.

443.163

Who does this?

ADP E.S. Small Business Division Sales Reps.  Thousands of ADP sales reps are taught how to fill out DOR SUI applications by their Mentors, direct bosses or another veteran ADP associate.

What is SUI?  This is the Re-employment tax every business must pay on their employees for the first $7,000 of wages.  It is also their only controllable tax.

Each state has their own rules, regulations and requirements when applying for a state unemployment number.  Most states have adopted an easy to use online application which opened the doors for fraud.  In about 15 minutes a seasoned ADP Sales rep can fill out the entire form and then fraudulently sign the business owner or officers’ signature. Due to the complex nature of the form it is mandated that only an officer or owner fills out and signs the application.

Enrollee Authorization and Agreement

Section J States,

“I certify that I am authorized to sign on behalf of the business entity identified herein, and that all information provided in this document has been personally reviewed by me and the facts stated in it are true”

 

Applicant Attestation, Declaration, and Signature

Section K of the Application States,

Registrant’s Responsibilities – You must initial next to each responsibility listed below to indicate that you have read, acknowledge, and understand each one. Your application will be rejected if any part of this section is left blank.

______ I understand it is my responsibility to notify the Department of Revenue of any changes of business structure, activities, location, mailing address or contact information.

______ I understand that any person who is required to collect, truthfully account for, and pay any tax, surcharge, or fee, and willfully fails to do so shall be personally liable for penalties and twice the amount of tax, under the provisions of s. 213.29, F.S.

In addition to any other penalties provided by law, including civil penalties, I understand it is a criminal offense to:

______ Fail or refuse to register (a late registration fee or penalty may also be imposed).

______ Not timely file a tax return or report.

______ Underreport a tax, surcharge or fee liability on a return or report filed.

______ Fail or refuse to collect a required tax, surcharge or fee.

______ Not remit a collected tax, surcharge or fee.

______ Make a worthless check, draft, debit card payment, or electronic funds transfer to the Department

“Under penalties of perjury, I attest that I am the applicant, or that I am an authorized principal of the applicant entity identified herein, and also declare that I have read the information provided on this application and that the facts stated in it are true.”

Why they do this?

ADP Sales Reps are required to submit complete orders to their implementation team.  That means collection YTD Balances, including all Payroll and Tax records, information for every employee paid that year including termed employees, business banking information and a valid State Unemployment Number to remit quarterly tax payments.  If orders are incomplete their implementation team (internal audit division) will kick back the sales order as incomplete. This means the business owner may be delayed from processing payroll and the sales rep may miss quota and not receive their commission check.