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Unemployment Question???

Discussion in 'Business Fundamentals' started by Nickdubya, Oct 11, 2008.

  1. Nickdubya

    Nickdubya Junior Member
    from Chicago
    Messages: 4

    I am a paving contractor and am snow plowing for the first time this winter. My guys usually go on unemployment from December 1 to April 15. I run a straight to the books business and I will not pay cash so they can still collect unemployment. I have workman's compensation and have to report the hours. How do others handle this?
  2. nick858

    nick858 Senior Member
    from Iowa
    Messages: 145

    Not answering your question here, but posing another, How is it determined what your guys receive on unemployment? I mow in the summer, and have a couple guysI would like to keep on, but I was told Unemp. just pays 30% flat rate of the wages?
  3. Superior L & L

    Superior L & L PlowSite Veteran
    from MI
    Messages: 3,035

    In Michigan I "think" its 67% of your average take home pay.
  4. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    it's a state thing, so it will differ....my guys get $250 (apx) per week.....that is the MAX
  5. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    you could keep track of all the hrs plowing and add them up into 40 hrs per week and start paying them full weeks before April 15 and take them off unemployment....and they will still draw benefits for apx 3 months
  6. dirtmandan2

    dirtmandan2 Senior Member
    Messages: 274

    Maybe you could bank the hours for them and when they get 40 hours cut them a check,
  7. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    assuming that you have an unemployment account set up, they(your workers) would have to qualify by working the past 2 or 3 quarters for a company that pays into an umployment account.....
  8. Kingwinter

    Kingwinter Senior Member
    Messages: 217

    I think in MN you can work a few hours each week and still collect. Read the state laws.
  9. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609

    here i think it would depend on how much they make plowing. If they are going from full time work to part time work at reduced hours, the pay they make at reduced hours would be deducted from the unemployment check unless they make too much and exceed the unemployment allowable amount.
    They would just write in how much they worked for the week and the unemployment check would be reduced accordingly.
    Too many hours and they would get no check.
    It would be there responsibility to file and put down hours they worked and have it adjusted not yours.
  10. Superior L & L

    Superior L & L PlowSite Veteran
    from MI
    Messages: 3,035

    This sounds good and would work really well but i believe its illegal because when a worker calls in to unemployment they are asked if they have worked that week and in order to get there check they have to say no when really they have.
  11. dirtmandan2

    dirtmandan2 Senior Member
    Messages: 274

    I know theres a difference between right and wrong however you want to be able to keep your employees. say they plow 10 hours a week ( just a number) its really going to screw up there unemployment and there not going to make any money and as such possibly always going to be looking for a new job...I know its not " by the book" but I know of VERY few seasonal contractors that dont " help" there employees...
  12. mike33

    mike33 Senior Member
    Messages: 335

    That is what we pay CPA'S for, ask them they will give the correct answer.
  13. Knight Owl

    Knight Owl Junior Member
    Messages: 8

    Unemployment compensation is not a right - it is a safety net so that the employee has money coming in should they be unemployed for no reason that is their fault. Trying to work around the system is wrong and subverts what unemployment compensation is designed for. Call the Bureau of Employment Security and they will gladly provide you with the actual laws regarding how to treat this....how much the employee can work without affecting the amount of compensation received, how to word the layoff letter so that the employee must report when called (or the amount of money they COULD make is deducted and considered paid wages), and how to stay within the laws of your particular state. I don't believe you should work around the system, but within the system that is put forth in your particular state.

    How you address it can make the difference between being viewed as a "plow jockey" or as a "businessperson".........

    PS: I wouldn't trust a CPA to tell me about employment law.
  14. jimaug87

    jimaug87 Senior Member
    Messages: 179

    I'm like you and I don't take stupid risks. if you get caught you will pay big. Ask an attorney that knows unemployment law well.
  15. redman6565

    redman6565 PlowSite.com Addict
    Messages: 1,411

    i tell my guys that plow to store their hours until they get 40, then i call them in on payroll and they dont collect umployment that week. then they go back on unemployment until they get another full weeks pay. that way its legal and everyone is happy.
  16. ducatirider944

    ducatirider944 Senior Member
    from Iowa
    Messages: 469

    Call workforce development in your area, they can tell you exactly what the rule is in your state. Iowa law is some one can be paid up to 25% of their weekly compensation with no penalty to their unemployment. After that, it is dollar for dollar. And yes, this info is coming straight from the horses mouth to me.
  17. hickslawns

    hickslawns Senior Member
    Messages: 613

    My guys usually don't get unemployment. The ones that have in the past I never messed with. Basically, you pay unemployment to the state and fed. If the employee works, they get paid by me. It is their responsibility to let the unemployment office know they worked "x" number of hours each week. If they don't report it, then it screws up their unemployment as soon as the payroll reports are filed and the unemployment office finds out.