If there is a discrepancy in wage reporting on your federal vs. state unemployment taxes, a misclassification of employees, or if you have unemployment accounts in multiple states, you may be in danger of receiving a state unemployment audit. In addition, the U.S. Department of Labor requires state agencies to randomly audit a percentage of employers each year, which raises this chance of audit even if you filed correctly. When this occurs, the state will send notification with the auditor’s contact information. The auditor will request the financial records needed for review. Once the audit is completed, they will go over the results and the debt that may have been assessed. As with the sales tax audits, it’s important that you have an expert on your side to help make sure the correct information is submitted, which typically minimizes your liability and the state taking aggressive actions against you.
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