Tax issue (insurance, how much, attorney)

[CA employer]

I ran into some tax issues and could not pay. I failed to pay employee taxes for 3 employees. Two of the employess went on State disability for elected surgurys. They contacted me to tell me the state did not have records of employment. I had not filed for them for over a year. They both did re-computation claims and were awarded state disability based on thier W2's. My question is what kind of trouble will I be in and what fines will I incur when this all comes down. Thanks for any input

[volosong]

You need to contact a tax attorney. Don't ask here on an anonymous public forum. What do most of us know about something as complex as your situation?

[CA employer]

First off this question is for someone that may know something, Obviously you don't so for you to respond to something you have no clue to is you just wasting your own time.

[cb73]

Since you don't seem to want to contact a tax attorney, contact the taxing agency directly. They'll be happy to tell you how much trouble you're in, and what fines/charges you'll be facing.

[oldtrader]

And once they are aware of your not paying, they often come in and take possession of all business assets, show you the door, put their own padlock on it, and if not paid quickly will auction off your business assets to get their money. They also freeze all your bank accounts. I have seen this happen a few times in California over the years.

You have a serious problem. While you are waiting for an answer on this forum, they are preparing to close you down. As mentioned above, run don't walk down to the taxing agencies involved, and pay your fines/charges immediately.

[armourereric]

When I first moved to California I took a job with a company, 3 months later, I switched to another, higher paying job with a competitor. I heard on the radio a month later that my first employer was busted for not carrying workman's comp insurance and was threatened with an immediate county wide shut down in which the company supposedly complied, 3 weeks later it was revealed that the insurance doc's supplied to the state were completely forged by a pro out of Vegas. The state then not only threatened an immediate shutdown but a $100K/fine. It was some small outfit called Pizza Hut, and involved their corporates stores, still owned by PepsiCo.

[user_id]

Originally Posted by armourereric

I heard on the radio a month later that my first employer was busted for not carrying workman's comp insurance and was threatened with an immediate county wide shut down in which the company supposedly complied, 3 weeks later it was revealed that the insurance doc's supplied to the state were completely forged by a pro out of Vegas. The state then not only threatened an immediate shutdown but a $100K/fine. It was some small outfit called Pizza Hut, and involved their corporates stores, still owned by PepsiCo.

There is something wrong with this story......large businesses usually aren't required to purchase workman's comp insurance and can instead self-insurance. There would be no need to forge anything.

But the OP's situation isn't about workman's comp, instead SDI tax that is withheld from an employees pay-check. Employees, not employers, pay these taxes and it sounds like the OP was stealing his employees tax dollars by deducting from their pay and not paying them to the state.

Anybody that questions regulations on small business....take note.