Employer Didn’t Report All of My Earnings

December 1, 2017 · 4 comments

in ¿Confused?

I got my UI award letter today and discovered that my employer didn’t report my second quarter earnings. They withheld state and federal taxes from my paychecks but didn’t deposit the funds with the tax agencies. I was laid off because they closed the business. This effects my weekly award payment–instead of $450 for 6 months, I will only get $175 for six weeks.

I will call EDD on Monday morning to report this fraud. I was told by someone I know who works for EDD that an adjustor will review my payroll check payment records and that I could end up getting the correct award amount, but that it is a long process. (I will also have to deal with the IRS and state next year when I don’t receive a W-2 or receive an incorrect W-2.)

I was shocked that the owners of the company would use the employees’ tax deposits to pay other bills (or pay themselves). I think they should go to prison for fraud. There are 10 other employees who are also affected by this.

Has anyone here dealt with this situation?

  • James Doe

    Yeah I’m Dealing with something similar. My employer didn’t withhold my CA taxes until I talked him into paying me direct deposit. after that it started withholding, and they cheated me and others out of lunch premiums, overtime, off clock work, among other wage & tax laws.
    Send employer a request of all payroll and personnel records! You can use sample templates and create your own.

    Employers are required to permit current and former employees to inspect or copy payroll records pertaining to that current or former employee.
    Labor Code Section 226(b) An employer who receives a written or oral request from a current or former employee to inspect or copy his or her payroll records shall comply with the request as soon as practicable, but no later than 21 calendar days from the date of the request. Failure by an employer to permit a current or former employee to inspect or copy his or her payroll records within the 21 calendar day period entitles the current or former employee to recover a penalty from the employer in a civil action before a court of competent jurisdiction. Labor Code Section 226, subdivisions (c) and (f)

    Labor Code section 1198.5 allows current and former employees to obtain copies of their personnel records. I think 30 days after request.

    By doing that and you can;
    A) prove that they were cheating you,If they are up to something, chances are they will not fully comply by providing everything, forging, and other rules ( see.DLSE.) B) enforce the fact that your Employee Rights were violated and file a charge with DLSE, Attorney, or any other Government Agencies and, in time, collect your rightfully owed compensation. starting from $750 for Lab code 226 to $4000 max for failing to provide accurate wage statements up to a Class Action that could lead to $$$$$$. Especially if it affected a group of people, or the numeric or number of people affected.
    C) clear up your tax issues when the IRS finds out about employer fraud

    As far as EDD goes they usually side with the employer, but if the employer is cheating you and especially the State of California they have to investigate. Sad but true, I found out that wage and tax theft is unfortunately common, And it pisses me off!
    Be honest, be educated, and fight for you hard earned money and rights!
    Keep your head up.

    • anonymous

      Thanks for the information. I talked to EDD this morning and the rep put in a request for recomputation of wages. I have all of my check stubs to prove my second quarter earnings, so it is just a matter of time before my wages are corrected. The EDD rep said it could take a month or more. I have to wait for an affidavit of earnings to arrive in mail, then send all the info. The auditor also will send a request to the employer for wage info. I doubt the employer will reply because they closed the business.

      Fortunately, I don’t need to request records from the employer because I have all my paycheck stubs, which is enough to prove my wages and withholdings. This is one reason why it is so important to keep good records. If I didn’t have my pay stubs this would be a lot worse. I would have to go to court and subpoena records from ADP (the payroll processing company) because all my paychecks, the quarterly reports, etc. were calculated and printed by them.

      I’m not going to worry about what does or doesn’t happen to the
      employer. That’s between them and the IRS and State of California. When I file a missing (or corrected) W2 document with the IRS
      next month, they will investigate the situation.

      Meanwhile, I have a job interview tomorrow, so maybe the job will be a good fit and I’ll get hired.

      Good luck!

      • annonymous

        Make sure to mail those records to edd via certified mail. Also keep a copy of it for yourself. (things get lost in the mail all the time).

        • anonymous

          Thanks. I probably wouldn’t have thought to do that. I will definitely send the records via certified mail.

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