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View Full Version : How to check if your employer is paying CA unemployment insurance tax? California


tiffany_m
01-27-2010, 05:32 PM
I live in California and have been working for a staffing agency as a W-2 employee. I believe that this employer is not paying the required state unemployment insurance for me. It is not listed on my paycheck stub or my yearly W-2 I just received.

When I started I was required to sign a document promising not to apply state unemployment benefits. How can I check to see if they have been paying it?

I would really appreciate any advise on how to find out for sure. The employer is not helpful in responding to my questions.

cbg
01-27-2010, 05:42 PM
Of course it's not listed on your W-2 or your paystub. It's not a deduction. It's not coming out of your pay. It is 100% paid by your employer.

The employer makes one payment covering all employees once a quarter, listing the pay for each employee for that quarter. It is not broken down by week or by pay period. And since it is paid entirely by your employer, it isn't SUPPOSED to be shown on your paystubs or your W-2. That's where deductions from your paycheck are shown.

tiffany_m
01-27-2010, 06:01 PM
I really don't think they are paying it. How do I check?

cbg
01-27-2010, 06:07 PM
Why do you believe it is not being paid?

The only way I know of to "check" is to call the EDD and ask, and the EDD phone queues are literally days long. What reason, other than that is it not on your pay stubs or your W-2 (and it is not on ANYONE's pay stub or W-2) do you have for believing they are not paying it? "Checking" is going to be difficult at best, and unless there is a very real reason to think it is not being paid, you are going to waste quite a lot of time on this issue. What's more, you will only be able to "check" during business hours and I don't think your employer will approve of your staying on the phone for hours, and I do mean hours, waiting your turn in the phone queue.

I'm assuming that you won't accept an answer from your Payroll department?

tiffany_m
01-27-2010, 06:14 PM
They made me sign this employment agreement that says I promise not to apply for unemployment benefits after my contract with their client is finished. That cannot be legal, right?

There have been a couple other things that make me think they are pocketing UI or maybe even state and federal withholding.

I just don't know and something smells very fishy.

Any advise you could give me is very much appreciated. Thank you!!

cbg
01-27-2010, 06:20 PM
Such an agreement would likely be unenforceable, which is not the same as illegal.

I don't know what you think they are "pocketing". As I have tried to explain to you, this is NOT a deduction from your paycheck.

How long have you been working for them on this assignment? There is a reason I am asking and the answer has a direct impact on the answer to your question.

tiffany_m
01-27-2010, 07:45 PM
Thank you for the continued dialog. I really appreciate the attention as this situation really has me wound up. I have been working for this company since May 2009. There are several things that lead me to something fishy is going on. I would love to have your take on this situation so let me share a little more:

First, I am an S-corp and have been an independent contractor for more than 10 years. This is the first company ever to mandate a W-2 instead of 1099 for an S-corp even though the nature of my employment clearly passes the test as being an independent contractor.

This company steadfastly refuses a 1099 tax status. I can understand their position if I was just an individual but I am an s-corp, they are actually better covered risk wise if we are B2B. They try to use the excuse that the client requires a W-2 status for all sub contractors but since the client is mutual, I know that is not true.

The client is a huge company, I have spoken to other owners of similar businesses that serve the client and we don’t know what to make of it. So the only think I can think of is that they’re not paying SUI given the employment agreement or maybe it's worse. What do you think?

Pattymd
01-28-2010, 01:53 AM
You are an employee of a staffing agency. They placed you, they pay you, they bill the client for your time. they can end the assignment any time. It is never illegal to treat a worker as an employee, no matter what the employee wants. It IS illegal to treat a worker as an IC if the worker does not meet the criteria for such status.

If this was a broker, who merely put you in touch with a company with whom you negotiated a deal, the decision of IC status would be between you and the company.

You cannot "check"; you have no standing to do so. You are not a party to the law requiring employers to report employees' wages and pay the appropriate tax. If they're withholding income taxes, FICA and SDI from your check, they're either paying UI tax or the state is after them for it.

IMHO, drop it. It's a nonissue for you.

angel_28
01-28-2010, 06:54 AM
Agree with Patty. If all other taxes are being deducted , I find it very starnge that they would "pocket" UI taxes. Makes no sense.

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