Is Underreporting Your Payroll for Your Worker's Compensation Policy a Crime?

Have you ever wondered whether underreporting your employee payroll for your company's worker's compensation insurance is a crime? As one Massachusetts business owner recently found out, it sure can lead to an indictment. Of course, everyone is innocent until proven guilty but the indictment alleges that the owner of a staffing agency underreported his employee payroll to his insurance company  from November 2007 to November 2009 in an effort to avoid high insurance premiums. Although his staffing company payroll exceeded $2,000,000, the man reported only $184,000 of payroll to the insurer. It is estimated that as a result of this, he underpaid his insurance company by more than $45,000.

The Attorney General's office said that as a result of the alleged fraud, the business owner put the insurance company unknowingly at risk to cover any undisclosed employees for injuries that may have occurred during the policy period. The business owner was indicted on two counts of workers compensation fraud and two counts of larceny.

Honesty is indeed the best policy!

STATE OF CONNECTICUT AND TOWN OF FAIRFIELD DECLARE STATE OF EMAERGENCY

Sled On!!! (Responsibly)