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Unemployment EDD California question about taxes California

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  • J.J. Brown
    replied
    Cecilia, I found your other posts on the other forums, and saw what little information you received from there. You are getting "it's fraud" and "you should not do this" but not a ton of details and I can imagine that you're frustrated. We've seen more than you and can tell you from experience, even if you think karma is balancing out by reporting your wages earned, it's wrong. I think you deserve a clearer explanation of what is going on.

    Looking at all of your posts about the topic, this "payment in one check" arrangement was apparently done at the employer's request. He is also insisting that you report your hours/wages to EDD. So there must be a benefit to him to do it this way. What could it possibly be? Not being familiar with most of employment law or payroll procedure, you may not be truly aware of the implications or why we are all objecting so strongly. So here's what is really going on with this setup, in no particular order:

    UI taxes should be paid on the first $7000 of income each year for each employee. By "combining" wages for two employees into one, your employer has successfully defrauded CA and the IRS out of what should be legitimate tax revenue on $14,000, instead paying taxes on $7000. The same goes for federal unemployment tax as well.

    He wants you to claim the wages earned to the EDD each week, because if someone shows up to find out if you're working while claiming benefits, that's an issue for him. He has not reported your information to the state as a "new hire" which by law he is required to do.

    By reporting these wages earned to the EDD, you assume you are doing the right thing for karma's sake, even if the check is not in your name. However, you have no wages similarly reported to EDD by your employer, nor additional tax revenue flowing into your unemployment benefits account. So his account is not hurt by this arrangement. Nor is his experience rating, if he lays you off.

    If you are non-exempt, he may be trying to avoid overtime payments by saying (to you & your partners) that the hours worked were technically job-shared.

    Since you live there and work at the apartment building, where is it most likely you will get hurt? And if you are not officially listed on the payroll, are you still covered for workers comp?

    Your employer is doing this to you on purpose. He does not want to comply with a lot of basic employment law. This is a red flag of the most common variety for "bad employers."

    You are not reporting (or not planning to report) these wages on your tax return. Instead, your partner gets all of the wages reported on his/her return. Did you know this will impact your future SS benefits? Having no income charged to your account will decrease your available benefits later on, whether due to disability or reaching retirement age.

    You are wondering if there is any crosschecking that you discover you reported wages earned to EDD, but not to the IRS. Assume that kind of cross check happens on a quarterly basis. What, if anything, will you do about it today?

    Leave a comment:


  • lolcat
    replied
    Cecliarhodes, if you want opinion, you can get that by asking a clerk, gas station attendant, hairdresser, friend, etc. In fact, I'm almost positive that your friends will give you the answer you want to hear. If that's what you're looking for you then you are looking in the wrong place.

    The volunteers here are very knowledgeable and are interested in giving an answer based on fact, law and legal precedent so as to give accurate answers based on the information given in the question.

    If you disagree with their answers but want the actual facts then, as Betty3, CAIW and cbg all noted, call the folks who call the shots -- the EDD and the IRS. After all, theirs is the opinion that matters.

    Leave a comment:


  • Betty3
    replied
    As the other responders noted, you would be committing fraud. Call the
    EDD and the IRS - there is no more that we can tell you.

    Leave a comment:


  • CAIW
    replied
    CAIW clearly doesn't know much about EDD as CAIW didn't know that I have to report my hours worked to EDD
    Really... well, IF you would provide all the facts, you may find more rehortic here...regardless, you are committing a fraud against the state of California.

    Yes, EDD does "care"...even if you are married to your partner...nothing would change. YOU are eligible for UI benefits on your own...your partner is eligible on his/her own... you cannot combine the two for "convenience" of the office.

    As CBG suggested..call EDD, call IRS... right now, IMHO, you are being a smart *** and I"m suprised anyone continues to respond to you.

    Good luck to you, in the meantime, you may benefit from legal counsel..face to face.

    Leave a comment:


  • Dogmatique
    replied
    Originally posted by ceciliarhodes View Post
    "What/Why are you reporting anything to EDD ? It's your employer responsibility to report wages to EDD and pay the UI premiums. Not you/the employee. "

    If anyone on EDD does any work, one is supposed to report the number of hours and wages earned on one's continued claim form.

    This is one position, but we are splitting it. The only reason only my partner is getting the check is because it is administratively easier for the office.

    I am honestly reporting all of my hours worked to EDD, why would they care if my partner gets the check?

    CBG: I am reposting this question on different law board because I obviously want as many different people's opinion as possible. If you have already told me your opinion, why are you posting an answer to me again? I am also asking something slightly different. Please understand, I am not asking for ways to defraud anyone or any organization. I am reporting all of my hours. I just wanted someone who KNOWS something about EDD to tell me if this is a problem or not. CAIW clearly doesn't know much about EDD as CAIW didn't know that I have to report my hours worked to EDD. So I'm looking for someone with actual experience with EDD. I realize you may be right and may be very knowledgeable, but I am looking for ANOTHER opinion too. Why are you the only one replying on ALL of the legal boards? I think that's weird. And I don't think you should reply so shortly to me when I am obviously seeking a variety of opinions from DIFFERENT legal forums.

    You would be committing fraud.

    Period.

    Even if.

    Leave a comment:


  • cbg
    replied
    Well, I know something about the EDD and YES THIS IS A PROBLEM!!!!! What is is going to take to get that through your head?

    It is not a matter of opinion. It is legal fact. And you have been told the same thing on each board where you have asked it. It doesn't matter how many times you ask the question, since it is FACT and NOT OPINION that you are committing fraud, you're going to keep hearing the same thing. You will not get "a variety of opinions" since there is only one correct answer.

    I'll tell you what. Since you are so certain that there is no problem here, why don't you call the EDD and the IRS, tell them what you're doing and see what they tell you?
    Last edited by cbg; 06-06-2011, 05:25 PM.

    Leave a comment:


  • ceciliarhodes
    replied
    "What/Why are you reporting anything to EDD ? It's your employer responsibility to report wages to EDD and pay the UI premiums. Not you/the employee. "

    If anyone on EDD does any work, one is supposed to report the number of hours and wages earned on one's continued claim form.

    This is one position, but we are splitting it. The only reason only my partner is getting the check is because it is administratively easier for the office.

    I am honestly reporting all of my hours worked to EDD, why would they care if my partner gets the check?

    CBG: I am reposting this question on different law board because I obviously want as many different people's opinion as possible. If you have already told me your opinion, why are you posting an answer to me again? I am also asking something slightly different. Please understand, I am not asking for ways to defraud anyone or any organization. I am reporting all of my hours. I just wanted someone who KNOWS something about EDD to tell me if this is a problem or not. CAIW clearly doesn't know much about EDD as CAIW didn't know that I have to report my hours worked to EDD. So I'm looking for someone with actual experience with EDD. I realize you may be right and may be very knowledgeable, but I am looking for ANOTHER opinion too. Why are you the only one replying on ALL of the legal boards? I think that's weird. And I don't think you should reply so shortly to me when I am obviously seeking a variety of opinions from DIFFERENT legal forums.

    Leave a comment:


  • CAIW
    replied
    Not only is what CBG said true....your post doesn't make sense...
    My partner and I are splitting a job as apartment building managers.

    OK... that's not a problem.

    I am reporting all of thee hours I work to EDD, but the checks are being paid as one lump sum to my partner.

    What/Why are you reporting anything to EDD ? It's your employer responsibility to report wages to EDD and pay the UI premiums. Not you/the employee.

    What checks are being paid to your partner...? Wages paid to the both of you? (presumably) IF you are being paid UI/unemployment ins benefits, you could see a demand for reimbursement and or charges of fraud against the State of Calif/EDD.


    Is that okay? Will EDD care that I won't reflect any income in terms of the IRS? Will the IRS be upset to see I'm reporting hours worked and not filing any taxes for? Can I easily explain to anyone that this is how we're being paid and have that be okay?

    See...none of that makes any sense... IF you have wages, YOU are to be paid. If your partner has wages, s/he gets paid. You do not receive "shared work/wages" in one check. A a matter of fact, not only are you committing a fraud, your employer is also abetting you in this.

    Or do I need to have our boss start paying us separately? .ABSOLUTELY you should both be paid for work performed...SEPERATELY.

    There is nothing here the EDD or IRS would fing "okay".
    No doubt similar info is provided in your other threads.. I haven't seen those.

    Leave a comment:


  • cbg
    replied
    You have posted this on several boards now. What makes you think the answer is going to be different here than it has been anywhere else?

    You are still committing fraud. You are still setting yourself for charges from both the EDD and the IRS. This was the answer before; it is the answer now; it will still be the answer the next time you post it.

    It doesn't matter how many times you ask the question; you're not going to get anyone to tell you that what you are doing is legal. It is not.

    Leave a comment:


  • Unemployment EDD California question about taxes California

    My partner and I are splitting a job as apartment building managers. I am reporting all of thee hours I work to EDD, but the checks are being paid as one lump sum to my partner. Is that okay? Will EDD care that I won't reflect any income in terms of the IRS? Will the IRS be upset to see I'm reporting hours worked and not filing any taxes for? Can I easily explain to anyone that this is how we're being paid and have that be okay? Or do I need to have our boss start paying us separately?
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