So they decided not to tax him twice, as its difficult to get tax from them,
but they didn’t have to give him the unemployment benefit, as it wasn’t valid
There are benefits to working for larger businesses… ironically you get paid more.
The warning is to never enter into a deal that you agree the employer may avoid paying tax and insurance… If they can show you in on that deal, you may then be liable for the tax.
(can you pay the insurance and then claim the benefit ? )
Yes, this happened at my husband’s last employer before he became disabled. Not only were they withholding taxes and not forwarding the money to the IRS and the state, but they were also withholding child support for my husband and another employee, and not forwarding to the proper party (husband’s ex-wife in our case, District Attorney’s office in the other employee’s case). They were also not paying for work-comp insurance, paychecks were bouncing, and they eventually got their business license pulled by the state for non-payment of taxes.
Luckily he had worked there less than a year after getting laid off from a previous job, so when he suddenly became disabled, he had enough credits from his prior well-paying job to qualify for California State Disability Insurance for a year, then for Social Security Disability after that. He was also owed for two bounced paychecks - we went to the Labor Board and got a judgement but were never able to collect. Yes I’m still bitter 16 years later - that money would have helped a lot at the time. :mad:
So did he have to pay the child support all over again?
The flip side of this is a case like Willie Nelson. In his case, it was his own business manager that neglected to pay taxes, essentially his employee or his agent. Willie still owed the taxes, even though the guy also left him with no money.
Eventually yes, kind of. It turned into a huge mess and we had to go to court a couple of times to get it straightened out. The Judge gave him credit for one month and not for another, but then his support obligation was lowered due to his much lower income on State Disability. Finally when he was approved for Social Security Disability, the dependents payment was assigned to the kids’ mother, and that counted for his child support obligation, and we never had to worry about it again. But I would not recommend “becoming disabled and chronically ill” as a way to get out of dealing with your child support.
)