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About Shirley McAllister, CPP, PHR
Expertise
I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience
25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

 
   

You are here:  Experts > People/Relationships > Retirement Planning > Accounting, Payroll & Pension Issues > Unemployment Benefits

Accounting, Payroll & Pension Issues - Unemployment Benefits


Expert: Shirley McAllister, CPP, PHR - 7/1/2009

Question
QUESTION: Hi, I was recently let go from my job (very unjustly but that's another matter) I filed for unemployment benefits and got them only to have them postponed because, as it turns out, my boss might not have been paying her unemployment insurance. What! I had no idea this was even possible. When you go for an interview the last thing that you ask is "are you guys paying your insurance"? Can I sue them for that? I was fired because of a "feeling" and now I'm left without income, no way to pay my bills, and no unemployment. In the 20 something years that my mom and I have lived here we have never not paid the rent. How is this legal? Is there anything I can do? No wonder when I told her I was filing for unemployment she said "good luck with that".

Thank you,
Ivette from New York

ANSWER: It is not legal and the company should pay a huge fine and penalty for not paying their unemployment taxes. In the meantime you still should be paid from the general fund or from federal funding. Did they say you would not be paid or that it is postponed until they investigate?

Shirley

---------- FOLLOW-UP ----------

QUESTION: Hi Shirley and thank you for your quick reply!
They told me it would be postponed until they investigate but that's it. They did tell me to keep claiming my weekly benefits but I don't know if that means that I'll eventually get something? I called but they had no answers for me just to wait it out. Still, that's pretty scary since landlords wait for no one.
I've just been so naive. I figured that if you worked for a legitimate company that this kind of thing was just second nature. I feel like the floor has been swiped from under me. This can happen to anyone and this is just a very bad economic time to go through this. I wonder how many people are aware of this? I don't wish it on anyone.

Thanks again!

ANSWER: I also do not wish it on anyone. Some landlords do understand and will work with you. It is very unfortunate that there are employers out there that do not pay their required taxes and put people in these types of situations.

I do think that you will recieve benefits, they are investigating and you should still be paid from the general fund or from federal funds.

In the meantime there are attorneys out there that will give you a free consultation and they will sometimes take a case on contingency. This means they get paid from any settlement you get and if you do not get one they do not get paid. I don't know the legal ins and outs of this situation but you may be able to sue the company. Why I say this is if they did not pay unemployment taxes there is a good possibility they did not pay other payroll taxes which they withheld from your check.

You might also contact the IRS at 1-800-829-3676 and check to see if federal taxes withheld from your check were paid to the IRS and contact the State tax commission in which you work and find out if state taxes which were withheld were paid in to the state.

If the taxes that were withheld from your check were not paid that it is a larger matter than you can imagine.

Shirley

---------- FOLLOW-UP ----------

QUESTION: Thank you so much for your time and information! You have been an enormous help. I really wasn't getting any answers from anyone. The thought of filing a suit has crossed my mind. I will do a bit of research.

Warmest Regards

Answer
The Department of Labor is investigating if it is pending. Please do keep reporting.  They may go to the company and make them pay all the premiums for the Unemployment Insurance (SUTA) tax that they did not pay from the time you started working so they can pay you the unemployment. When it is settled you should be paid for all the time you have been reporting in a back pay award in a lump sum. Also keep checking with the unemployment office as to the progress of your claim or on line if it is available in your state.

Good Luck, I hope it is resolved soon.

Shirley

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