Right, I get that. But if the company never actually sends out the state taxes, and just keeps them, as the article states, was it ever actually state taxes? It seems, well dirty, that they tax their workers state tax then keep it. It seems at least for transparency purposes that they should send in the state taxes and if they have an incentive plan with the state then get that money back as the state cuts a check. It just seems when it is done the way it is currently done like the employee is being charged some sort of an ‘employment tax’. If the company doesn’t pay state taxes.. why are the employees being withheld a state tax. I’m sorry if I’m missing something here, this is an area i don’t understand.
The taxes are calculated, the amount is recorded and the dollar figure is sent to the state treasurer. The company transfers the amount from their outbound payroll account to their ‘inbound concession account’. These accounts have a fixed dollar amount or a fixed date, generally ten years.
The worker doesn’t care how the company was reimbursed for the dollar amount the state promised or what portion / percentage was received each payday. They care that they have a job. Local business is happy that there is a substantial number of people with paying jobs who can buy from them.
The competition was invited to speak during the initial negotiations, the BBB sent their reps, local unions sent their reps, etc. A state politician is not going to invite one corporation into their community at the cost of every competitor.
Well, I don’t understand that either. It already ticks me off that Paychex collects and sits on the taxes collected from my employees. I’d really be upset if I thought that they never paid the taxes at all.
I’ve known of small business owners who have gone to jail over schemes like that.