The California Public Utilities Commission CPUC and a multi task force consisting of the County District Attorney's office and EDD Labor Division throughout California will be concentrating their efforts in the 2010 year on limousine companies operating without Workers' Compensation Insurance and not reporting payroll taxes. The task force plans to aggressively pursue operators operating their companies in this manner.

By California Law if you operate a business with employees you must provide Workers' Compensation Insurance. Workers' Compensation Insurance is based and computed by your payroll. The multi task force has received numerous complaints from the livery industry of companies operating without Workers' Compensation Insurance and companies not reporting their payroll. The task force estimates that companies operating without Worker' Compensation Insurance and not reporting payroll are saving an estimated additional 30% each month. This additional savings and cash flow allows operators operating in this way a huge advantage over their competitors who are having to operate legally.

Another area of concern for the task force are companies who do have a Workers' Compensation Insurance policy, but are not reporting all of their payroll. Example, XYZ company has fifteen employees half of them are having taxes reported and the other half are receiving cash or a check for the wages earned. In this example the operator is in violation of Workers' Compensation Insurance and Payroll Taxes Premium Fraud. Operators should be fully aware if they are operating in this manner and are found guilty, they are looking at large fines, a felony on their record and potential jail time.

The multi task force see these illegally operating companies making it very difficult for the legitimate companies to be on a level playing field. The Greater California Livery Association GCLA will keep you updated with developments from these ongoing investigations during the year.

< Prev		Next >