[wiaattorneys] Re: Personal Liability for Payment of UI Taxes

  • From: "Brock Timmons" <btimmons@xxxxxxxxxxxxxxx>
  • To: <VSandron@xxxxxxxxxx>, <wiaattorneys@xxxxxxxxxxxxx>
  • Date: Fri, 11 Mar 2005 13:41:52 -0500

Georgia's provision [O.C.G.A. 34-8-167(e)] on personal liability for UI
taxes reads as follows:

   (e) All contributions, including interest, penalties, and costs
thereon, imposed by this chapter are made a personal debt of the
officer, major stockholder, or other person having charge of the affairs
of a corporate or association employing unit who is required to file
returns or pay the contributions required by this chapter. The
Commissioner may assess such officer, stockholder, or other person for
the amount of such contributions, penalties, and interest. The
provisions of Code Section 34-8-164 and Code Section 34-8-170 shall
apply to assessments made pursuant to this subsection. With respect to
such officer, stockholder, or other person, the Commissioner shall have
all the collection remedies set forth in this chapter.

Since the personal indebtedness imposed by this section is not for
payment of wages but only derives from the employer's responsibility
(except in the case of a sole proprietor) , it has been held to be
dischargeable in bankruptcy.  We add individual names to writs of
execution (liens) above the name of the primary judgment debtor, the
employer.
   Brock

Brock C. Timmons
Chief, Legal Section
Unemployment Insurance Division
Georgia Department of Labor
148 Andrew Young International Blvd., NE
Atlanta, Georgia 30303-1751
Telephone: 404.232.3310
Facsimile:   404.232.3313
email:  btimmons@xxxxxxxxxxxxxxx

>>> "Sandronsky, Vera@EDD" <VSandron@xxxxxxxxxx> 03/10/05 06:39PM >>>
California uses a statute in our Unemployment Insurance Code (section
1735)
to pierce the corporate veil.  According to the attorney in my office
who is
familiar with this area, our efforts have been very effective and
successful.


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Vera Sandronsky
EDD Legal Office
(916) 654-8410


-----Original Message-----
From: wiaattorneys-bounce@xxxxxxxxxxxxx 
[mailto:wiaattorneys-bounce@xxxxxxxxxxxxx]On Behalf Of Jack Gannon
Sent: Thursday, March 10, 2005 8:45 AM
To: wiaattorneys@xxxxxxxxxxxxx 
Subject: [wiaattorneys] Personal Liability for Payment of UI Taxes


Indiana has a statute attaching personal liability to payment of UI
contributions, penalties, and training assessments under our Incumbent
Worker program.  We have not previously used this in our collections
efforts
because it seems to run counter to courts' reluctance under common law
to
"pierce the corporate veil" and hold officers and agents of a
corporation
liable.   Can anyone offer me any guidance on this?

John L. Gannon
Staff Attorney
IN Department of Workforce Development
10 N. Senate Avenue
Indianapolis, IN 46228
Phone: 317-232-7482
Fax:  317-233-1884


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