The Louisiana Workforce Commission says it has collected about $1.2 million this year in unemployment insurance taxes that employers had dodged paying. Businesses submit unemployment taxes based on a rating system that accounts for its payroll, how much in taxes it has paid and how much in benefits have been paid to ex-employees. The labor agency is using a software system that helps spot so-called dumpers that use avoidance techniques such as transferring high-tax payrolls to shell corporations with lower rates. Officials also say they’ve caught businesses starting a new corporation with a small payroll, then transferring a large payroll into that corporation to pay reduced taxes. One case involved $400,000 in overdue taxes, penalties and interest.
State catching up to unemployment tax dodgers
Sign up for the free Daily Report email – local news about the people, companies and issues that impact business impact business in Baton Rouge and beyond.
