ILNews

Stable owner liable for unemployment tax, appeals court affirms

Dave Stafford
September 23, 2013
Back to TopCommentsE-mailPrintBookmark and Share

The owner of a Zionsville horse stable lost her appeal of a determination that she owed unemployment insurance tax for employees because they performed non-agricultural work.

The Indiana Court of Appeals on Monday affirmed the judgment of liability made by Aija Funderburk, an administrative law judge for the Indiana Department of Workforce Development, who ordered the owner of Boone Ridge Stables to pay back years’ unemployment insurance taxes plus interest and penalties.

A terminated three-year stable employee filed for unemployment benefits in July 2011 and the department filed a “block claim investigation” after it found the stable reported no wages for the worker. An audit ensued, finding the stable paid more than $70,000 in wages from 2008-2011.

Stable owner C. Subah Packer argued that employees were exempt because they provided “agricultural labor,” but the department differed, and the COA agreed in C. Subah Packer v. The Indiana Department of Workforce Development, 93A02-1301-EX-83.

Packer agued the workers cared for “agricultural commodities,” and thus the stable is exempt from tax liabilities and providing unemployment insurance benefits. She argued none of the employees gave riding lessons, for instance, which would not qualify as agricultural labor.

“We have not previously construed the definition of ‘agricultural commodities’ in the unemployment compensation context,” Judge Edward Najam wrote for the court, which found guidance in Day v. Ryan, 560 N.E.2d 77, 81 (Ind. Ct. App. 1990). That decision followed the line of established caselaw recognizing a fundamental distinction between an agricultural pursuit and a separately organized, independent productive activity.

“Packer operated a stable where she raised, managed, and conducted husbandry services for horses. Her employees fed and cared for the horses, turned them out to pasture, helped maintain the farm buildings and equipment, and performed husbandry services. In general, such activity is agricultural labor,” Najam wrote. “But the employees also cared for boarded horses and horses used for riding lessons in addition to tending Packer’s horses. The boarding of horses is not agricultural but, instead, is a separately organized, independent productive activity.”

Because the stables didn’t keep adequate employment records, the department couldn’t determine how much of the work might have been agricultural and how much might not have been.

"Thus, [Funderburk] could not make an evidence-based determination of which employees and how many hours were attributable to agricultural and non-agricultural labor, and the Department could not calculate the amount of unemployment compensation taxes owed solely for non-agricultural labor,” Najam wrote for the panel that included judges Elaine Brown and Paul Mathias. The opinion affirms that Packer must pay unemployment compensation taxes on the entire amount of employee pay for the audit years.

“To conclude otherwise would have allowed Packer to escape liability for taxes owed for non-agricultural labor. We cannot say that the ... factual determination is arbitrary, unreasonable, against the evidence, or contrary to law. As such, we affirm the ... determination that Packer is liable for unemployment insurance taxes for the audited years.”

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  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!!!

  3. It is amazing how selectively courts can read cases and how two very similar factpatterns can result in quite different renderings. I cited this very same argument in Brown v. Bowman, lost. I guess it is panel, panel, panel when one is on appeal. Sad thing is, I had Sykes. Same argument, she went the opposite. Her Rooker-Feldman jurisprudence is now decidedly unintelligible.

  4. November, 2014, I was charged with OWI/Endangering a person. I was not given a Breathalyzer test and the arresting officer did not believe that alcohol was in any way involved. I was self-overmedicated with prescription medications. I was taken to local hospital for blood draw to be sent to State Tox Lab. My attorney gave me a cookie-cutter plea which amounts to an ALCOHOL-related charge. Totally unacceptable!! HOW can I get my TOX report from the state lab???

  5. My mother got temporary guardianship of my children in 2012. my husband and I got divorced 2015 the judge ordered me to have full custody of all my children. Does this mean the temporary guardianship is over? I'm confused because my divorce papers say I have custody and he gets visits and i get to claim the kids every year on my taxes. So just wondered since I have in black and white that I have custody if I can go get my kids from my moms and not go to jail?

ADVERTISEMENT