The headaches continue...

[southernbelle]

When it rains it pours!!! I closed my business in July and I have a former employee to file for unemployment benefits in September. I responded to the required paperwork to prove her claim was bogus and they found that she had no basis for a claim and awarded 0 benefits. Today I received a packet stating that she has filed an appeal and that I need to go to court.

My question is, how is it possible to file a claim against a business that is "out of business"? Does this type of claim sound like something that would be dischargible in a Ch. 7 in a worst case scenario?

<unrelated question>
If I open a bank acct. at a new bank prior to filing, does it look suspisious or do I just list it like everything else?

Thanks in advance.

[familyof7]

You dont pay their unemployment. The unemployment payments come from how much they worked 2 quarters ago. But to be eligable for the unemployment benifits they paid in they must meet certain requirements. They paid into it with taxes you pay into it with taxes. Alot of people think that the employer pays it to them or has to pay it back but that is not how it works.

[familyof7]

One thing that determines eligiabltiy is for what reason the are no longer at the previous employer laid due to slow business off or fired for a good reason etc.

[leftyf]

Usually the employee has not paid any taxes for unemployment. The burden is on the employer to pay the tax. Just an fyi...

[southernbelle]

I am currently in a position where I am making a payment arrangment to pay the back unemployment taxes that my ex was supposed to pay, but stole the money behind my back. There's plenty of debt from the failed business which includes back taxes.

I don't understand how all of this works, but it seems unfair to be held personally responsible for payments which at this point will come directly out of my own pocket especially since the business is now closed unless they are taking a snapshot back in time and don't care where that money comes from if it is owed to the employee. P.S. This employee quit because she wanted to do what she wanted while at work and my ex has sketchy documentation, so if I go to court, it is my word against hers.

[PaKettle]

I am currently in a position where I am making a payment arrangment to pay the back unemployment taxes that my ex was supposed to pay, but stole the money behind my back. There's plenty of debt from the failed business which includes back taxes.

I don't understand how all of this works, but it seems unfair to be held personally responsible for payments which at this point will come directly out of my own pocket especially since the business is now closed unless they are taking a snapshot back in time and don't care where that money comes from if it is owed to the employee. P.S. This employee quit because she wanted to do what she wanted while at work and my ex has sketchy documentation, so if I go to court, it is my word against hers.

I would say there is a very good chance the employee will not win the appeal, especially if you can document she QUIT, whatever the reason. Unless she has some proof you fired her without cause or laid her off due to lack of work, at least here in CALIF, she would have no claim for unemployment. In CALIF - and I suspect in most other states as well - you have to have a very compelling reason to QUIT a job and then get unemployment.

Many times people appeal to try to get the UI benefits, even though they know there is no chance. Usually it is a case where someone quits and then they think they can get unemployment, and they find out it doesn't work that way so then they try to invent some story as to their being laid off or something. In most cases, the employer wins against the employee.

If you have ANY documentation at all that she was let go due to poor work habits or anything like that, that should nip it in the bud.

Good luck.

[familyof7]

But the unemployment she would receive would come from unemployment tax not directly from you , you would not owe anymore unemployment tax if she got it than you do now that is past due. I knew the employer paid into it but wasnt for sure if the employee did. either way you arent going to owe any more in unemployment tax if she gets it.

[familyof7]

It is like insurance you pay money into it and if someone files a claim they get paid out of it.

[southernbelle]

I think I understand how it works. I thought the amount of money paid would come out of my pocket which is why I was concerned since I am bankrupt. I spent the last 2 hours searching through boxes of old paperwork to locate the papers she signed when she quit which clearly states that she quit. Thanks for the great info. and support.

[familyof7]

Yeah so it would not help nor hurt you even if she got unemployment. I hope you get all this straight soon it was really not fair how you ex left you stuck picking up pieces.