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MA. UI audit dispute

I am a POA for a MA unemployment audit. The auditor erroneously believes that the management company under audit is a common paymaster.

She also states the common paymaster is not recognized in MA. The auditor want to allocate the management company’s employees to all of the companies it manages. Thus would result in ten times the unemployment tax.

I cannot find a MA. General Law on the matter.

I have spoken to CPA’s, Lawyers and payroll service company’s. None have ever seen this.

The supervisor will not return phone calls or emails.

Things are getting pretty ugly.

Looking for guidance.

Keith

Comments

  • David WarrenDavid Warren ✭✭✭

    There are several MA experts on the Labor Law Talk website.

    Not my state.


    Why do they think a common paymaster is involved? Are you doing something which makes it look like a common paymaster, such as moving employees between companies? If it looks like a duck and quacks, it is a duck. The government really does not care what words you use to describe something. They look at actions taken. You mention SUTA. Does this arrangement somehow share the SUTA limit between companies? Say Bob works for companies A, B and C and his SUTA limit follows him around everytime he changes companies. You can say that is not a common paymaster, but it still quacks like a duck.

  • They are related parties. However, the management company employees staff like sales and marketing personnel that promote all the hotels.

    It’s not like they are bouncing around desk clerks.

    More importantly, MA does not have a law on the books that states it does not recognize the federal Common Paymaster rules.

    Which, by the way, the federal law suggest the implementation of a common paymaster as it benefits the employee.

    They are not taxed on excess social security and are not excluded from certain fringe benefits.
  • David WarrenDavid Warren ✭✭✭

    Federal Common Paymaster effects FIT-FICA-FUTA only. It has nothing to do with SUTA. MA does not need a law excluding Common Paymaster, which is federal taxes only. The question is whether they have their own Common Paymaster rules effecting SUTA.

    If you want to find someone who actually knows something about MA law, try the Labor Law Talk website.

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