What if an employer never reported or contributed to Unemployment Insurance in the state of Nevada since 2001.

Question

Even though this is for one employee, is this in violation of federal laws?

Answer 1

They'd probably have a massive bill to settle with the state, probably including penalties and interest as well.

Answer 2

I guess no-one will know unless the authorities got tipped-off. I'm sure he's not the only employer.

Sorry about the other question. I didn't see your additional question until it was too late and you don't allow email. If the staff was seconded for 1 and a half yrs, I think the situation doesn't change. However for long periods of secondment, they would have checked with the tax experts which is more beneficial - to have the staff be an employee of the foreign or US co. for his individual tax purposes. Then there is the problem of employment passes and work permits. Also, sometimes the seconded person can be replaced by another doing the same function, so not making him a permanent employee leaves the option open for the foreign head office.

Answer 3

If Nevada operates remotely like my state, California, if an employee files an unemployment insurance claim, his wage history would come up with zero. This would generate an immediate audit to determine the correct amount of wages for that employee so could get benefits as well as the wages for everybody else. If an employer failed to pay state unemployment tax, he may also have failed to pay federal employment tax. The employee should review his annual wage statement from Social Security to make sure it matches his W-2 or request a copy of his W-2s from IRS and if the one from this employee is missing contact IRS for instructions.

Answer 4

Yes, it is required (at least in Maryland). There are penalty to be charged. If the employee shows the pay stub, then... oops.

Answer 5

The employer will be in deep sh/t with the state at some point, and will owe them a small fortune.