Many N.J. businesses will be hurt by income tax increases

Document Sample
Many N.J. businesses will be hurt by income tax increases Powered By Docstoc
					                      Trenton
N.J. takes aim at businesses that dodge payroll taxes
Critics say Senate proposal could turn regulation ‘into a witch hunt’                                                                the bill was released by the state senate           national brotherhood of electrical Workers and
                                                                                                                                labor Committee on June 15 and is up for con-            the new Jersey state pipe trades Association.
          By ANDREW KITCHENMAN                        classify workers as independent contractors.                              sideration by the Assembly labor Committee.                    bricklayers state director Richard Tolson
A bill to suspend or revoke the licenses of                 bill co-sponsor sen. Stephen M. Sweeney                                  but sen. Sandra Cunningham (d-Jersey                said it now takes far too long for the state to
businesses that pay workers under the table is        (d-West deptford) said the                                                City) asked whether employers would be tar-              investigate whether violators continue to oper-
being considered by the legislature.                  bill grew out of the work of                                              geted by anonymous tips. “i can see it turning           ate using state licenses.
      the measure could affect a wide range of        Gov. Jon S. Corzine’s blue                                                into a witch hunt,” she said.                                  the measure is opposed by the Commerce
businesses, from landscapers to funeral homes,        Ribbon Advisory panel                                                          sen. Sean T. Kean (R-Wall) said steps should        and industry Association of new Jersey, the
if the state determines they don’t pay wages          on immigration policy.                                                    be taken to help workers, but expressed concern          state Chamber of Commerce and the Chamber
and payroll taxes.                                    sweeney said the problem                                                  business owners could be penalized due to tech-          of Commerce of southern new Jersey.
      the measure allows the state department         with unpaid wages and                                                     nicalities. “We don’t want to put undue pressure               sen. Marcia A. Karrow (R-Flemington)
of labor and Workforce development to audit           taxes rests with unscrupu-                                                and burdens on employers,” Kean said, adding             said she would support an effort that discour-
a business that allegedly failed to keep records      lous employers, not work- Stephen M. Sweeney                              some employers may not be aware of violations.           ages hiring illegal aliens, but she said she was
of paying wages or payroll taxes. if the business     ers. He said businesses see state fines for violating                          bill co-sponsor sen. Fred H. Madden                 concerned the duration of suspensions could
is found to have violated the law, it would face a    payroll laws as a cost of doing business.                                 Jr. (d-Washington) said employers would                  be open-ended. she abstained from the labor
license suspension for the first offense and the            “there are businesses in this state — not a                         have multiple chances to correct violations              Committee vote, which was 5-0.
loss of the license for the second offense.           lot — that take advantage of workers by paying                            before their licenses are revoked permanently.                 Madden denied the bill targets undocu-
      A potential problem for employers is that       them off the books, and that needs to stop,” he                           the first chance would come when they are                mented immigrants; an identical bill is to be
state officials would be left with too much power     said. “it’s unfair to workers; it’s also unfair to                        informed of the allegation; the second, after            considered by the Assembly labor Committee.
to decide on the penalties, opening up the possi-     other businesses.”                                                        they have been audited; the third, after a tem-                Rutgers university professor Janice Fine
bility of targeting certain businesses, said Chris-         the immigration panel found that the                                porary license suspension.                               said the problem of misclassifying workers
tine Stearns, vice president of health and legal      practice of misclassifying workers as indepen-                                 stearns said the suspension would shut              occurs because governance of the labor market
affairs for the new Jersey business & industry        dent contractors is disproportionately com-                               down businesses that depend on their licenses.           has been lagging.
Association. she also said vague language about       mon among immigrant workers. in 2007, the                                 “since you can’t do business without it, it really is          “new Jersey has clear regulations on
how the state first determines whether a viola-       state identified more than 31,000 misclassified                           a revocation,” not a suspension, she said.               what an employee is and what an employer
tion occurred raises legal questions.                 or nonreported workers, more than $482 mil-                                    the measure is supported by labor unions,           is,” Fine said. “And it’s not up to the employer
      supporters of the proposed law said it          lion i
				
DOCUMENT INFO
Description: AN INCREASE IN individual income taxes passed by the state Legislature last month will also affect many New Jersey businesses, since many business owners pay personal income taxes on their business profits. Nationally, nearly one-third of all business taxes are paid through the individual income tax, because many companies are organized as "S corporations" - limited liability companies or partnerships whose business profits are taxed as the personal income of the company's owners.
BUY THIS DOCUMENT NOW PRICE: $6.95 100% MONEY BACK GUARANTEED
PARTNER ProQuest LLC
ProQuest creates specialized information resources and technologies that propel successful research, discovery, and lifelong learning.