for 14 years and employ about 15 people. Today I did something that I've never done before. I decided to challenge a GA DOL ruling on unemployment benefits. In the past I've always let the employee draw unemployment because I've tried to be a compassionate businessman and tried to help former employees in times of economic uncertainty. I had a young man who worked full time during the summer but part time during school (Tec school). While working part time for me he also worked part time at various other jobs, but all were cash basis and no income shown. We recently had a slow period and I let him go. I provided a separation notice but stated on it that he was working various other jobs. He filed for unemployment and I got a statement today approving him for benefits. I told him that it would be challenged based on the fact that he was working other jobs and in my opinion doesn't deserve unemployment benefits. This young man is a 3rd generation of government dependency. I have helped him in many ways over the years but for some reason this time I just said enough. I pay my income taxes (S-Corp, so my personal tax rate is very high), pay State and Federal unemployment tax and just decided that I would take a stand against someone trying to beat the system and hopefully teach the young man a valuable lesson. I get the feeling most people think the Govt. pays unemployment, not realizing that each company has to pay into their fund. Was I right in this case or do I have a chance? I'm not going to lie at a hearing and I told the young man if he wanted to lie it would be on him.
I've owned a small business...
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I agree with your view 100%. It is not upon your employee taxes or taxpayers to keep him up, as you stated he has other jobs.
Years ago I fired someone because she was working at another job when she was supposedly disabled. I received notice that she filed for unemployment. I challenged it and won. Never felt bad about it because it was the right thing to do.
Did you forget about your employers share of FICA & Medicare, as well as workmen's comp insurance.
I am also a small business owner (Tax Prep since 1971) and it is amazing how much today's younger generation do not understand.
I am also a small business owner (Tax Prep since 1971) and it is amazing how much today's younger generation do not understand.
No I surely didn't forget. Workmens comp is one of my highest expenses along with liability insurance. I absolutely hate writing the monthly check. In 14 years I've used my insurance 1 time for a minor back sprain yet my annual premiums are over 11K. Most people have no idea what a small business owner goes through to stay in business. We've been blessed and my business has afforded me and my family a good life, not rich but I don't worry about my financial future. But, I'm the one who has busted my tail and borrowed money against my home in order to succeed. I find much happiness and satisfaction in knowing my business helps other families and the small communited in which we live. That's why I despise seeing others using the system for government assistance.
Was I right in this case or do I have a chance? I'm not going to lie at a hearing and I told the young man if he wanted to lie it would be on him.[/QUOTE]
Define "govt dependency" as nowadays, that has become teachers, police, fire..any kind of person with a JOB, but works for govt.
2nd, if talking welfare as 3rd generational dependency, parents have done great job of raising him if he's got the motivation and ambition to get a couple of other jobs to supplement his income AND go to school. Actually would be one of the success stories. I assume since cash jobs (and yes, I know about assume) must be cutting grass, cleaning gutters, babysitting? If not, turn in the employer too who isn't following labor rules and paying the taxes as you are.
Is it really worth fighting for the approx 13 a month in UI, since U insurance is 2.70 percent of the first 9500 of his wages? And that is the max unless of course, you have a history of lay offs, could be higher. Could be lower if you don't too. Someone with 2 or 3 jobs, going to school too, etc. and working for me for several years, etc., I wouldn't have the inclination. But that's me. I just don't think it would be worth my time either. And there is a way to get a refund on what you've paid if he was making min wage or close to it and hadn't made the 9500 threshold, IF you win.
They are allowed to earn 50 dollars a week in "cash" jobs like babysitting, housekeeping, lawns, etc. Anything over the 50 has to be reported and would be deducted from UI check. Of course, if cash, it would be up to the people who employ him to report. So again, if you know who they are, report them. Unless of course, he's doing service type "home" jobs on the side. Then there's a 1000 per year threshold for those employers. If it's less than 1000 a year he's earning, they don't have to report.
Define "govt dependency" as nowadays, that has become teachers, police, fire..any kind of person with a JOB, but works for govt.
2nd, if talking welfare as 3rd generational dependency, parents have done great job of raising him if he's got the motivation and ambition to get a couple of other jobs to supplement his income AND go to school. Actually would be one of the success stories. I assume since cash jobs (and yes, I know about assume) must be cutting grass, cleaning gutters, babysitting? If not, turn in the employer too who isn't following labor rules and paying the taxes as you are.
Is it really worth fighting for the approx 13 a month in UI, since U insurance is 2.70 percent of the first 9500 of his wages? And that is the max unless of course, you have a history of lay offs, could be higher. Could be lower if you don't too. Someone with 2 or 3 jobs, going to school too, etc. and working for me for several years, etc., I wouldn't have the inclination. But that's me. I just don't think it would be worth my time either. And there is a way to get a refund on what you've paid if he was making min wage or close to it and hadn't made the 9500 threshold, IF you win.
They are allowed to earn 50 dollars a week in "cash" jobs like babysitting, housekeeping, lawns, etc. Anything over the 50 has to be reported and would be deducted from UI check. Of course, if cash, it would be up to the people who employ him to report. So again, if you know who they are, report them. Unless of course, he's doing service type "home" jobs on the side. Then there's a 1000 per year threshold for those employers. If it's less than 1000 a year he's earning, they don't have to report.
Problem here is that unemployment tax STARTS at 2.7% for a new business. After the initial period of about 3 years, the company's employment history, claims history and industry stats come into play. Company could then receive a rate as low as .04% ($3.80/yr) to approx 8.0% (760.00/yr), per employee.
With 15 employees earning at least $9500, the total could be as low as $57 or more than $11,000. And it would take about 5 years for rate to come back under 1%.
With 15 employees earning at least $9500, the total could be as low as $57 or more than $11,000. And it would take about 5 years for rate to come back under 1%.
You are absolutely correct about the starting rate! I was using the starting point rate because I was assuming he hasn't had many layoffs and that would at least be a middle of the road figure to use if his rate had gone up for some reason and I was using a monthly rate per employee. At max, $63. a month @ 8percent. Pennies on the dollar for lowest.
And for me it wouldn't be worth the time it takes to go through the hoops. Especially for a long term employee going to school and obviously motivated to be self supporting.
yes you doing the right thing but it's going to cost you more too fight than it's worth . Also in a few years you will get audit for bringing attention to yourself.
This was a civil, educated thread until you chimed in. I did not provide all of the facts out of the respect I have for the young man. I've known him since he was a child and have actually been a mentor trying to help him over the years. I've seen a change in the last couple of years where he seems to be looking for the easy way instead of working and earning his way. My UI tax rate is around 8% because of past layoffs so yes I pay Close to 10K a year until it can work down. My challenge to his claim has nothing to do with the money, but more trying to help him understand that he will face bigger challenges in life and for him not to look for the government to keep him up. Thanks for the replies and advice and I'm not a peckerhead.
I don't think you're a peckerhead, but it seems 1) petty and small, 2) like a waste of your own resources, and 3) none of your business to be teaching lessons unless maybe it's your son? Even if so, I assume this guy is an adult ....4) he probably needs the money
I used to work for a place that would challenge EVERY UI claim, as a policy.... most of the time they sent me to do their dirty work . They had LOTS of turnover, I was at the DOL like 8 or 10 times a month and got pretty good at getting everybody denied. When they eventually fired me for being a smartassed college kid who got sick of their holier than thou, bible thumping, lesson teaching sanctimonious selves (and wasn't afraid to tell them so, lol). I knew exactly which words to use at the GA DOL to ensure I'd get benefits . I knew that burned their butts lol but I had a couple quarters of school left after working for them for 3 years as their buttboy so I rode it out to the max
I've never lost a case. the system is geared towards the employee. Document EVERYTHING. like others said, when you do lose a case, your rate goes up. Protect yourself first.
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