Supposedly getting laid off.....

Discussion in 'Business Operations' started by justmjc, Mar 30, 2004.

  1. justmjc

    justmjc LawnSite Senior Member
    Posts: 261

    Well, there is a possibility that I'm getting laid off shortly. Now, I've been instructed to talk to a cpa, but I'm being told that I should set my small business up under my wife's name, so I can collect unemployment. My this legal, fraudulent, or shady, etc? It doesn't sound legit to me, and I don't know if it's legal or not, but I've heard of people that's done it. That is both collect an income and unemployment. Anyone here done just this or know about the possibility?
  2. googleplex

    googleplex LawnSite Member
    Posts: 82

    I think the very fact that yo're asking these questions should give you your answer.
    Is it legal - probably not. Is it fraudulent - probably, ask your lawyer. Is it shady - YES.
    I'm sure that you could set up the business in your wifes name, you could be an 'intern' and with your lawyers help it would probably pass a strict reading of the law. (Assuming the state doesn't go after you for a fraudulent conveyance) But, it's WRONG. Morally wrong. That's not how the system was set up.
    So, be a man. And 'do the right thing'
  3. EagleLandscape

    EagleLandscape LawnSite Platinum Member
    Male, from Garland, Texas
    Posts: 4,347

    ***********I agree.***********
  4. grass_cuttin_fool

    grass_cuttin_fool LawnSite Gold Member
    Posts: 3,503

    Well when I was on unemployment 2 years ago the computer would ask ''did I make any money including self employment'', And if the buisness is set up and ran under your wifes name she will have to issue a 1099 form and a red flag is gonna go up in the un employment office. It could be posable that could get you and your wife in trouble, plus here in va if caught they can deny you un employment in the future because of fraud. So my answer is i dont think you can. In my case the weeks I cut grass and it was dry that summer and not much grass, I reported how much I made and got a check for the difference Iwould of drew with no income
  5. Mdirrigation

    Mdirrigation LawnSite Silver Member
    Posts: 2,639

    All that has to happen is 1 person report you , and you are screwed
  6. celltech

    celltech LawnSite Member
    Posts: 34

    I got to agree that it is not only wrong but the potential for getting in trouble is high. I prefer not to even collect unemployment. I have been laid off before and I had applications in at McDonalds (AND EVERYWHERE ELSE) so that I would not have to collect unemployment. I got hired at McDonalds and was prepared to start, but then I got a job at a factory fixing there machines. But I was prepared to flip burgers until something else came along.
    I have always believed that unemployment is ALMOST unneccessary. Open the newspaper. There are a lot of jobs out there. It is just a matter of, what are you willing to do?? Me I would rather work for my money then have it handed to me. And ALMOST any job in the paper will pay more or close to what unemployment does. And if it is a little what, I earned it.
    Now, when I got laid off, I filed for unemployment. I was hired by the factory before I ever got my first unemployment check. I did get 3 days (I think it was) of unemployment. But I did not sit around and collect it. I filed for it immediatly because I have a family (wife and 2 kids) and did not want to short change them if McDonalds was not hiring. But got hired at the factory with NO manufacturing job experience. Waited that out (really did not like it---2nd shift) until I was able to get back into the cell industry.
    It just burns my butt hearing about people "milking" the system. I am also a college student (at age 31---at least I get to see the college babes---hehehehe) and had a huge argument with one of my teachers last year. He was claiming unemployment is not a tax, but instead an insurance that everyone pays into. I did not argue that, but he could not see the reasoning that if more people "settled" for a different line of work for a while instead of milking the system, that unemployment "insurance rates" could go down. "insurance" rates go down, employer pays less into it, and low and behold....product price could go down or thier employees could get paid more.
    I am not to proud to collect unemployment if neccessary, but I do not see it as being neccessary all that often. I know so many people that will sit around and collect unemployment just because the do not want to work or becuase the do not want to go into something different or they think they are too good for McDonalds...........burns my butt. And CHEATING the system is the same thing. Collecting something for nothing and collecting a little something on the side. IT IS WRONG!! NO IF'S, AND'S or BUT'S!
  7. celltech

    celltech LawnSite Member
    Posts: 34

    Holly CRA!!!
    Sorry that was so long. Did not even realize it until I pressed "Submit Reply".

  8. Green Quality

    Green Quality LawnSite Member
    Posts: 176

    well I went threw the flames of hell, and it"s not over yet.I was laid off in oct,worked for some lawn care bizz, for 6 yr. I had some major life changes,happen in this time,when I was laid off. So I knew i needed to make some income changes in the coming year,I needed to make some extra I thought it would be nice to start a part time business,in the summer.well i got everthing that i needed to be legal,so my plan was to work full time for the company that i worked fro 6 yr,and work part time for my self.well some how (they) found out about my future part time when they called me back to work,they told me that they did not want me to work a part time job,or moon lite,or anything after work,Now get this I did not sign any thing for this co.even if i did what ever they said would be bull ****!well I agreed to work for them ,but could not agree on The iron fist on my time off,away from now it is in the hands of the uc unemployment office,the making it sound as if i was self employed,when my start date is in may. you know when your laid off, every penny counts,when you have kids,so when i did my income taxes,i used some money to invest in the future,so for what is worth,i'm glad I did what i I'm full time working for my self,and praying every day that Christ will help! have no fear!
  9. grass_cuttin_fool

    grass_cuttin_fool LawnSite Gold Member
    Posts: 3,503

    good luck green, i know this strays from the thread some, but i had worked as a mechanic for almost 20 years when the company closed up and went to china. I had been mowing part time for 8 years, I had atrractive accounts at times and was tempted to leave my regular job and pursue lawn care full time but I couldnt just leave a job that was putting the bread on the table and take a chance. Well the Good lord has provided me with work and food fo my family. This is my 2nd year full time and I am doing ok. I dont have have any major accounts but enuff to provide for me and my family and a nice buisness that is growing steady
  10. googleplex

    googleplex LawnSite Member
    Posts: 82

    I used to love argueing with the pointy-headed profs who probably never had a 'real' job in their lives!

    "He was claiming unemployment is not a tax, but instead an insurance that everyone pays into. I did not argue that..."

    next time tell him that UI is a tax on JOBS - the higher it goes, the less jobs there are.

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