Jul 7, 2011 7:10 AM by Lauren Wilson & AP

State catching up to unemployment tax dodgers

BATON ROUGE, La. (AP) - The Louisiana Workforce Commission says it has collected about $1.2 million this year in unemployment insurance taxes that had been dodged by employers.
Businesses pay 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 such techniques 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.


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