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COA reduces $125k judgment against company to $200 in fines

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Finding that a liability administrative law judge erred in determining that a company that previously operated a call center in Fishers owed more than $125,000 in unemployment insurance contributions, interest and penalties for a year when the company had no Indiana employees, the Indiana Court of Appeals reversed.

In TPUSA, Inc. v. Unemployment Insurance Appeals of the Indiana Dept. of Workforce Development, 93A02-1207-EX-605, TPUSA Inc. appealed the $125,666.33 judgment levied against it by the Indiana Department of Workforce Development and upheld by the LALJ in 2012 concerning unemployment insurance contributions for the 2010 calendar year. Prior to 2010, TPUSA, owned by a Florida company, had a call center in Fishers, but beginning in October 2009 the facility was closed and no longer had anyone employed in Indiana. TPUSA submitted its 2009 fourth-quarter wage report to the DWD showing no employees and no paid wages, but it did not mark the report final. It did not file any quarterly payroll reports with the department for 2010.

In 2011, the DWD went after TPUSA for overdue unemployment insurance contributions for 2010. TPUSA did not initially respond to notices sent to it by DWD, and the DWD estimated that the company’s overdue contributions, plus interest and penalties, totaled more than $125,000. TPUSA later appealed, but the LALJ affirmed the amount.

The Court of Appeals found the DWD acted properly under the Indiana Unemployment Compensation Act because it was unaware that TPUSA ceased operations in Indiana. TPUSA did not mark its last quarter report in 2009 as “final report” and did not notify the DWD it no longer operated in the state. Thus, DWD expected to continue to receive quarterly contribution and wage reports from the company for 2010.

The statute does allow for a reduction of the estimated amount of contribution if the employer makes a showing of “reasonable cause” for failure to timely file the reports.

“We hold that where an employer has ceased business operations in Indiana, no longer pays wages or has any employees in the state, and files accurate reports with the Department indicating such, this may be considered ‘reasonable cause,’ as required by Indiana Code section 22-4-11-4(b), so as to allow for an adjustment (i.e., reduction) in the amount of the estimated contribution,” Senior Judge Betty Barteau wrote.

Instead, the judges found that a $25 fine assessed under I.C. 22-4-19-10 against any company that negligently or willfully fails to submit any report required under the Act to be proper. Because two reports are required to be filed each quarter, TPUSA owes $200.

 

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  1. All the lawyers involved in this don't add up to a hill of beans; mostly yes-men punching their tickets for future advancement. REMF types. Window dressing. Who in this mess was a real hero? the whistleblower that let the public know about the torture, whom the US sent to Jail. John Kyriakou. http://www.nytimes.com/2013/01/26/us/ex-officer-for-cia-is-sentenced-in-leak-case.html?_r=0 Now, considering that Torture is Illegal, considering that during Vietnam a soldier was court-martialed and imprisoned for waterboarding, why has the whistleblower gone to jail but none of the torturers have been held to account? It's amazing that Uncle Sam's sunk lower than Vietnam. But that's where we're at. An even more unjust and pointless war conducted in an even more bogus manner. this from npr: "On Jan. 21, 1968, The Washington Post ran a front-page photo of a U.S. soldier supervising the waterboarding of a captured North Vietnamese soldier. The caption said the technique induced "a flooding sense of suffocation and drowning, meant to make him talk." The picture led to an Army investigation and, two months later, the court martial of the soldier." Today, the US itself has become lawless.

  2. "Brain Damage" alright.... The lunatic is on the grass/ The lunatic is on the grass/ Remembering games and daisy chains and laughs/ Got to keep the loonies on the path.... The lunatic is in the hall/ The lunatics are in my hall/ The paper holds their folded faces to the floor/ And every day the paper boy brings more/ And if the dam breaks open many years too soon/ And if there is no room upon the hill/ And if your head explodes with dark forbodings too/ I'll see you on the dark side of the moon!!!

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