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New York Worker’s Compensation Board Penalty Update: Don’t Pay that Unemployment Insurance Tax Bill So Fast

Recently, our New York Worker’s Compensation Defense Attorneys have been seeing more employers being audited by the New York State Department of Labor, Unemployment Insurance Division for non-payment of employment taxes. Employers are required to pay 6.1 percent of each employee’s first $8,500 in wages for unemployment insurance benefits taxes. The typical scenario occurs when a company has classified individuals as independent contractors instead of employees. It is possible that this classification was proper and legal but many employers are unprepared to defend and fight the audit. In some cases, employers decide to simply pay the alleged back taxes owed for unemployment insurance benefits so that they spend time running their business. This decision can have disastrous results as the New York State Department of Labor, Unemployment Insurance Division, shares its information with the New York State Worker’s Compensation Board. Shortly after these companies decide to pay the unpaid unemployment insurance benefit taxes, which are generally not significant, they are surprised to learn that they hit with a tremendous bill (many times over $100,000.00) from the New York State Worker’s Compensation Board. Critically, these employers defenses may be compromised from their earlier admission by paying the New York State Department of Labor taxes. Companies and employers must strategically consider all of its responses to government agencies especially agencies that could issue penalties in excess of $100,000.00.

Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for top.lawyers.arrive.mag.2011.jpgOur New York Worker’s Compensation Board Defense Attorneys have been fighting for businesses for years and removing and reducing penalties and judgments. Call now to speak with one of our New York Worker’s Compensation Board Attorneys and learn how we can help protect your business (800) 893-9645.