Letter to lender? No.... low earnings report to Dep of Labor

Client is single s corp owner employee. He's totally solo with no other employees.

He also mostly worked as an employee for another contractor, but he was layed off.

Since he doesn't have much side business at this moment, he is underemployed. At least, that's what he tells me. I don't know.

The state sends me an email stating:

"This is the xxxxx Unemployment Office requesting for you to complete the Low earnings report for claimant xxxxx.

Xxxx completed his own Low Earnings Report for the weeks listed on the attached document. But, because he is the owner of the business, someone else will need to complete it for him. It could be yourself or his office manager or anyone in Human Resources. Xxxxxs benefits will be on hold until you sign off on the attached form and send it back. Also, for future filings, please be sure his Low Earning Report is completed by yourself or someone other than Mr xxxxx. Please let me know if you have any questions!"


Am I willing and able to sign off on such a thing? The scope of my services with the client is "tax preparer" (income tax and payroll tax). I have no experience with this form nor do I wish to certify or attest to there not being any work available, etc. How would I know?

I'm not comfortable with it.

Would you fill out such a report?

Have you ever heard of a state dol not allowing a solo s corp owner to request unemployment?

Is it best to push back in a professional manner?

In Minnesota, if the S Corp owner did not elect out of MN UC he is subject to unemployment tax up to the max amount, and the amount includes taxable income.

Just to br clear, this s corp owner has been paying state unemployment tax for years, and now wishes to collect unemployment as the employee.

The state wants me, his tax preparer, to fill out the employer's report that confirms and grants the unemployment.

The form requires that I confirm and sign my name to lots of things that I can't verify.

I know it’s beside the point, but why is it a good idea for the state to ask an office manager or HR department to certify low earnings. As a former government employee, I have said my fair share of daft things, but this one makes no sense whatsoever.

Anent the certification, if I was asked to verify something about which I had no knowledge, I would decline to do so and explain why, in great detail that is like to be understood by a government employee. That may get them to cooperate.

^^ OK, yes, I like this approach. I also asked my insurance rep and my friend who is a lawyer.

How about:

Aloha xxxxxxx, thanks for the email.

I'm sorry for my slow reply, I had to check with my professional liability insurance provider and my attorney.

Unfortunately, as I am only an income and payroll tax return preparer for xxxxxx, I have no way to know or verify many of the items on this form. For example, the form asks how many hours he worked and if he had accepted all work during the week. I'm very sorry, but I have no way to verify these items.

Only Mr xxxx would know and would be able to verify these things.

After speaking with the other professionals about this (the attorney and the practice liability insurance agent) they indicated that a single s corporation owner/employee who has not elected out of state unemployment insurance (which "XXXXXX LLC" has been paying for several years) should be able to collect these benefits without having to hire an additional HR person to verify these things. It seems that sole operators have received these benefits in the past from this state and other states.

Are you sure that it is not possible for Mr XXXX, as he is the president and sole operator of XXXXXXX LLC, cannot verify these items for you in some way? We would appreciate any help you can provide and if you could use your authority to allow such a thing if you feel it is appropriate.

Thanks for your help and sincerely,

It Depends

I like your letter.

We would appreciate any help you can provide and if you could use your authority to allow such a thing if you feel it is appropriate.

Don't forget to staple a crisp Andrew Jackson to the letter.

Haha!

yes