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company filed ch.7 and closed down and they didn't pay their unemployment taxes.

by Kimme
(McDonough, Ga)

company filed ch.7 and closed down and they didn't pay their unemployment taxes.


I work in the state of Georgia..The company I am working for is bankrupt.. I was just informed by my GM that the the owners of the company has not paid any unemployment taxes or fed. taxes in over 6 mos, which means once the store is closed none of the employees will be able to file for unemployment..How can this be, what can we do about this,how are we going to be able to live until we find other work???



Hi,

What you can do is file for unemployment benefits anyway and let the state do the investigating into the tax issue.

Even when an employer doesn't pay unemployment tax and they were supposed to be paying it .. It doesn't necessarily mean you won't collect benefits if in fact, you were working in "covered employment".

States have "general funds" for this kind of stuff and they pay the benefits out of the general fund when an employer can't be charged or most likely your type of situation.

The state of Georgia will probably go after the employer if necessary .. although, I don't know anything about bankruptcy law nor whether just filing means anyone can also have unpaid taxes discharged .. I wouldn't think so.

But, that is not something I think you should concern yourself with .. unless GA denies you unemployment benefits .. which I don't think they will.

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