ncCPAp on the GO!

NY DOL is calling employees of a perspective client - will this get bigger than a UI audit

  • 1.  NY DOL is calling employees of a perspective client - will this get bigger than a UI audit

    Posted 26 days ago
    A prospective client/possible audit representation is being audited by NY Unemployment/DOL - most likely on the basis of a tip from a disgruntled former employee

    the employer has been paying workers a mix of checks/reported payroll and cash off the books

    NY UI auditors have been calling employees

    Based on past experience - will this end in just unemployment taxes and penalties owed or how likely is this audit to get escalated into something bigger?

    I am focused on past experiences of practitioners where the employees have been called by DOL.

    Thank you all.  

    Marvin Gruza CPA
    cpamarv@aol.com


  • 2.  RE: NY DOL is calling employees of a perspective client - will this get bigger than a UI audit

    Bronze Most Valuable Member
    Posted 25 days ago
    This is an excellent question and goes to DOL's audit motivation.  In an audit initiated based on a misclassification picked up as a consequence of a claimant's UI filing or randomly, employees will not be contacted.  Therefore, this may be part of either an employee complaint, raising issues affecting multiple workers, or it could be a cross referral from another agency.  This may ultimately lead to a proceeding before the Industrial Board of Appeal.

    ------------------------------
    Ruth B. Kraft, Esq.
    Partner and Chair, Employment Law
    Vigorito, Barker, Patterson, Nichols & Porter, LLP
    300 Garden City Plaza
    Garden City, New York 11530
    Ruth.Kraft@vbpplaw.com
    516-282-3355
    Cell 516-353-3306
    R.Kraft@vbpnplaw.com
    ------------------------------