Agent Leaves and Now Files for Unemployment

[VolAgent]

First, employee's do not pay employment taxes period. Employers pay employment taxes.

Second, you guys are mixing two separate issues. One issue is whether someone is a W-2 or 1099 employee. This is a tax issue that is the type of thing that concerns the IRS and department of revenue. The other issue is if they have an unemployment claim or not. To have a claim someone has to show up on someones report ( in Indiana it is to the Department of Workforce Development) as an employee. If you do not show up as an employee you cannot collect period. Even if the guy had been an employee if you only paid $3,000 the amount he could collect off of your account would be small.

An employer's failure to properly file forms and pay taxes does not disqualify an employee for unemployment. It just opens the employer up for all kinds of hurt.

 

[Franz Kafka]

First, employee's do not pay employment taxes period. Employers pay employment taxes.

Correct.

Second, you guys are mixing two separate issues. One issue is whether someone is a W-2 or 1099 employee. This is a tax issue that is the type of thing that concerns the IRS and department of revenue. The other issue is if they have an unemployment claim or not. To have a claim someone has to show up on someones report ( in Indiana it is to the Department of Workforce Development) as an employee. If you do not show up as an employee you cannot collect period. Even if the guy had been an employee if you only paid $3,000 the amount he could collect off of your account would be small.

Trust me, IRS and DOR aren't the only ones who will come after you if you falsely classify your employees as independent contractors.

 

[GreenSky]

I'm still thinking Karma.

Rick

 

[Crabcake Johnny]

You could face criminal charges if they think you're trying to avoid things like paying workers comp. Highly, highly unlikely if you're running a very small outfit but still.

 

[STIBROKER]

I'm still thinking Karma.

Rick

care to expand.............

 

[GreenSky]

care to expand.............

No............................not at this time.

Rick

 

[STIBROKER]

No............................not at this time.

Rick

really.................

 

[Josh]

You could face criminal charges if they think you're trying to avoid things like paying workers comp. Highly, highly unlikely if you're running a very small outfit but still.

Do you just make this stuff up as you go along?

Yes, there are all sorts of things that he *could* face charges for. He could face charges for running an illegal gambling institution because insurance could be considered a form of gambling, but that's probably not going to happen either.


The *** agent put him down as an employer, jacobtn is going to go back and say it was a 1099 deal, and that will be the end of that. The *** isn't going to start trying to file action proving they were an employee and if they do then that's a whole different ballgame, but we're nowhere near that yet. Let's ease off the fear-mongering for a little bit here.

If after jacobtn tells the powers that be that he was a 1099 IC and then the *** agent wants to dispute it, then that's a good time to start thinking about talking to a lawyer, but we're nowhere near that yet. Hell, jacobtn could even tell the powers that be that the *** agent was a 1099 IC that is welcome to come back and start working as a 1099 again.

Bottom line: Unless jacobtn tells the powers that be that the *** agent was a 1099 IC and it becomes a matter of dispute, there is no reason for him to talk to any lawyer. There is no reason to do anything other than inform the powers that be about the agents mistaken understanding and then deal with anything that comes of it when the next steps move along.

 

[Franz Kafka]

Do you just make this stuff up as you go along?

Yes, there are all sorts of things that he *could* face charges for. He could face charges for running an illegal gambling institution because insurance could be considered a form of gambling, but that's probably not going to happen either.


The *** agent put him down as an employer, jacobtn is going to go back and say it was a 1099 deal, and that will be the end of that. The *** isn't going to start trying to file action proving they were an employee and if they do then that's a whole different ballgame, but we're nowhere near that yet. Let's ease off the fear-mongering for a little bit here.

If after jacobtn tells the powers that be that he was a 1099 IC and then the *** agent wants to dispute it, then that's a good time to start thinking about talking to a lawyer, but we're nowhere near that yet. Hell, jacobtn could even tell the powers that be that the *** agent was a 1099 IC that is welcome to come back and start working as a 1099 again.

Bottom line: Unless jacobtn tells the powers that be that the *** agent was a 1099 IC and it becomes a matter of dispute, there is no reason for him to talk to any lawyer. There is no reason to do anything other than inform the powers that be about the agents mistaken understanding and then deal with anything that comes of it when the next steps move along.

That's possible but how many are really that stupid to think that they can collect Unemployment as a 1099? Maybe someone tipped him off that he could claim benefits by claiming that he really was an employee.

 

[Josh]

That's possible but how many are really that stupid to think that they can collect Unemployment as a 1099? Maybe someone tipped him off that he could claim benefits by claiming that he really was an employee.

Plenty of agents think that way (and other industries too).