A direct benefit to employers is the reduction and prevention of fraudulent unemployment and workers` compensation payments. Timely receipt of New Hire data allows each state to crossmatch this data against its active unemployment claimant (UIC) files either stopping payments or recovering erroneous payments. For example, although only 20 percent of the state of Tennessee`s employers are currently required to report, the state has saved over $11.4 million in UIC benefits since 1991. With 100 percent of the employers reporting, as required by PRWORA, Tennessee and every state should save significantly more in the future.
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