Last year was a difficult one for many people. An unprecedented number of unemployment claims were filed due to the pandemic and the economic fallout. If you are a household employer who has recently laid off a household employee, you may be wondering what will happen next. Let’s break down some important things to remember.
The Importance of Legal Pay
It’s important to note that if you haven’t paid your employee on the “books”, you may face some problems. Paying your housekeeper, nanny, or other household employer off the books means you did not pay unemployment tax. You may have to come up with some money for back taxes and penalties if your former employee files for unemployment benefits, which is their right.
If you have paid your employee on the books , there shouldn’t be an issue in their applying for and receiving unemployment benefits. as You’ve paid your fair share of unemployment taxes, which fund the benefits system.
What Action is Required?
Pay attention to any documentation that comes in the mail regarding your employee’s unemployment benefits. Shortly after your employee files, you should get a questionnaire from the state that asks for verification of employment dates and reasons for the layoff. If the pandemic is a reasons, you should state this as most states are ensuring COVID does not cause an increase in the experience-based tax rate of employers. Once the state receives the completed documentation, your employee will receive notice of their expected benefits. Many of these documents have deadlines associated with them and if you don’t adhere to those you could delay your employees’ receipt of the benefits that they need to make ends meet, or forfeit your right to dispute a fraudulent unemployment came.
What if I Did Not Pay Taxes?
If you were paying your employee under the table, you’ll need to prepare. The unemployment claim prompts closer investigation of your non-compliance by the federal and state authorities. Talk to our experienced team at about how we can help get your past due employee taxes paid before the IRS requests an audit. We can help make sure you complete what you need to get caught up and avoid additional expensive penalties or fines. Call our experts today at 1-800-626-4829 or request information here to find out how we can help ensure you’re ready once your employee files unemployment.