Businesses across the U.S. are receiving official-looking letters labeled Form 5102 – Payment Compliance Notification, supposedly issued by a government agency such as the U.S. Business Regulations Department or a similar made-up entity. The form demands payment to avoid non-compliance with federal labor or tax laws.

Let’s be clear: Form 5102 is NOT a legitimate IRS, Department of Labor, or state agency document.

These scams are designed to look urgent and official to trick businesses—especially small and mid-sized ones—into sending payments or disclosing sensitive information.

🚩 Red Flags to Watch Out For

Here are some warning signs that a Form 5102 notice is fake:

• The letter references agencies that do not exist, such as the “U.S. Business Regulations Department.”
• The form includes threatening language, warning of penalties or legal consequences if immediate action is not taken.
• It demands a payment for compliance processing—typically between $90 and $150.
• The envelope or return address is from a private business rather than a federal or state agency.
• It urges you to respond via mail or fax to a PO box or third-party compliance service.

✅ What to Do If You Receive One

If you or your team receive a Form 5102 notice:

1. Do not send payment or provide any personal or business information.
2. Take a photo or scan of the document and report it to the Federal Trade Commission (FTC) at https://reportfraud.ftc.gov.
3. Let us know at Time & Pay. We’ll help you confirm whether any notices are legitimate.
4. Shred the document and instruct your staff not to engage with it.

🛡 How Time & Pay Helps Protect Your Business

Scammers target businesses because they know that payroll, compliance, and HR processes are often complicated. As your payroll partner, we stay informed about threats like these so you don’t have to.

If you ever receive an unfamiliar form or notice and aren't sure if it's real, send it to us—we’re happy to verify it for you.

💬 Final Thoughts

Government impersonation scams are on the rise, and Form 5102 is just one of many tricks bad actors are using to steal money from small businesses. Stay skeptical, verify everything, and rely on trusted partners like Time & Pay to keep your business protected.

If in doubt, don’t respond—reach out.