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Employment Law/Ex Employer/Payroll Co. not providing tax documents

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Question
Hi, I worked for a company that had to shut its doors in February of 2014. It was a huge surprise. Apparently the owner had financial issues. Anyways, this year came around and we all waited for our W2's and they never came. After non return of calls from the Owner and the payroll co., we finally were given (by email,not mail) copies of a 1099.  WHAT?  we were taxed on our payroll checks! I asked for a copy of my last paystub...again, nothing. I was told that they were "forced to void out those transactions"  What does all this mean? The owner ignores calls and texts. So therefore, we have a employer who is hiding something, and a payroll company unwilling to cooperate also...No documentation?? I dont buy it.  Do we have a legal issue here?

Answer
What you need to do is contact your local Department of Labor. It sounds like the employer may have collected taxes from your checks and never paid them to the government. It is unfortunate that you did not keep check stubs, because now it will be hard to prove that.  The one proof you may have is if you deposited the same amount each payday and the total of those deposits does not match the amount on the 1099. It is not a good sign and I would definately contact the Department of Labor and see if they can help you out. You may have a legal case if you can prove they collected taxes from you and never paid them to the government, but if the company is in bankruptcy you will have a hard time suing and collecting the money.

Shirley

Employment Law

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Shirley McAllister, CPP, PHR

Expertise

I can answer questions about payroll laws and payroll tax laws and Human Resource laws and agencies. I can answer federal payroll and human resource law questions and most states; I do not have a knowledge of the local taxes for cities and counties within the state. If and when I can I will try and send you the website where you can reference the answer and where you can obtain more information as well as a contact number if needed for that particular agency. Some agencies I have worked with are IRS, Department of Labor (federal and state), Revenue Canada (and provincial governments), Inland Revenue, OSHA (0ccupational Safety and Health Administration); Social Security Administration and National Child Support as well as other agencies in Payroll and Human Resources. Some Laws I am particularly familiar with are FLSA (Fair Labor Standards Act), ADA (Americans With Disabilities Act), FMLA (Family Medical Leave Act) COBRA (Consolidated Omnibus Reconciliation Act ) , QDRO's, QMCSO's, and other support orders and garnishments, USERRA (Uniformed Services Employment and Remployment Rights Act,PPA Act (Pension Protection Act of 2006, As well as most other employment type acts. I am also well versed in the Title V Civil Rights Act and the HIPAA (Health Insurance Portability and Accountability Act).

Experience

30 years in Payroll and Human Resources

Organizations
SHRM (Society of Human Resources) APA (American Payroll Association) DOLEA (Department of Labor Employers Association) CPA (Canadian Payroll Association) NAPW (National Association of Professional Women) The Mentoring Network

Education/Credentials
PHR Certification in Human Resources CPP Certification in Payroll in U.S. Payroll Administrator and Payroll Supervisor certification in Canada

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