Can you get caught working on unemployment?

Answer 1

Yes, you can. And because in most cases you can still receive unemployment benefits and work, even if reduced, it's better than losing your benefits, paying fines and possibly go to jail for not reporting your income. Definitely report any earnings you make - it's better in the long run.

Answer 2

Claiming unemployment benefit whilst actually being in paid employment in the UK is fraud as you cannot have your cake and eat it. What tends to happen is that someone discovers the fact that the person is doing this and informs the benefits hot-line anonymously resulting in an investigation and suspension of benefits. If evidence is found, then prosecution can follow with all the consequences that flow from that, criminal record, probably loss of job, difficulty gaining employment in the future and a fine or imprisonment. Sometimes, a person just gets away with it for so long that they think they will never be caught but who really wants to spend their lives looking over their shoulders or wondering who that might be at the door? Not sure of the situation in other countries.

Answer

In the US, the employer will most likely report your income. If you are being paid "under the table," perhaps not. Also, if it is a part time gig, you may be able to claim the work and retain your unemployed status and some of that pay. If caught double dipping, you will at the very least be required to repay the unemployment funds you were not entitled to. Ethically, it is never right to do this--we depend on people to take the help they need, but no more than they are entitled to.