If my employer commits fraud will it hurt my workers comp?

Monday, July 19, 2010
By WcrAdmin

I was hurt on the job, about a month ago. My boss and i reported that i make $20.00 per hour @ 80hrs every 2 weeks. Everything was going good until the insurance company requested my prior 52 weeks of payroll from my boss. I live in the house that is located on our business property. I have lived their for the past 13 months. When I first moved in my boss said he would take half of rent from each pay check. Well what he did was take 25 hours per month from me. So it looks like i made less money than i did. Bla, Bla Bla, to make a long story short. My boss told my i can’t tell the insurance company, because his workers comp premiums he pays from a % of payroll. So he offered for me to live at the house for free for ” a while ” to help me make up for my wc checks being so low. I told him i don’t want to take any hand outs. I’m scheduled for surgery in 3 weeks. I really don’t want to get caught up in any sort of insurance fraud and get my claim denied. If the hours that i told them i work and the hours that my boss reported don’t jive. My question is if the insurance company asks me about why the hours don’t jive, should i lie for my boss? I’m afraid if i get caught lying for him i might get in trouble.
if he under-reported his payroll can they deny my claim if they found out about his insurance fraud?

More Relevant Articles:

Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks

Tags: , , , , , , , , , , ,

5 Responses to “If my employer commits fraud will it hurt my workers comp?”

  1. It sounds like he is unreporting all his hours. If your paycheck does not have your full salary on it (before rent), this is a problem. You and your boss aren’t paying proper income taxes and your FICA payments (social security/medicare) are also being short changed, which may cause you to earn less retirement benefits.

    I don’t think they can deny you insurance payments. You employer and you will probably have to pay back taxes and insurance.

    #19537
  2. this could cause your workers comp TTD (temporary total disability) payments to go down which it should since you are not paying rent…. if the insurance carrier leaves your TTD payments as they are then you should pay your rent out of the weekly TTD payment.
    once you have your surgery, finish rehab, and reach MMI (maximum medical improvement) your PPD (permanent partial disability) will be set………
    your settlement will be determined based on state guidelines, make sure all these facts are included when this settlement is determined so that you receive a fair settlement
    (fair to you and the employer as well as the insurance company)

    the tax issues are something you need to address, without knowing how you report this rent deduction i can’t say if you have any type of tax obligation… room and board or housing allotments are common and if it is reported properly not an issue …..

    your boss has NOT committed any type of fraud, this housing issue is a matter that needs to be clarified and simply needs to be documented, if it is not already.
    this rent should be shown as wages and then a deduction should be shown, the key is making sure it is all documented…..

    #19538
  3. michr is mistaken, the employer HAS committed a fraud against the
    WC carrier. Insurance premiums are based on a per $100 payroll
    system. By under reporting the wages paid, the employer is
    attempting to reduce the amount of those premiums….that is fraud
    against the carrier, and punishable by fine and/or jail time. There
    are numerous cases in Calif right now due to this very action. You
    should NOT participate in this, and when asked by the WC carrier
    for your wage statement, provide it truthfully. You could be
    brought into the case against your employer unnecessarily. There
    are specific rules where housing is provided in exchange for labor.
    That doesn’t sound like what is happening here. You are paying
    rent… and have been for the past 13 months according to what you
    say. That your employer is adjusting how that rent is paid
    shouldn’t have any affect on your WC benefits. However what he has
    done is lie to the WC carrier. If he is found guilty of any tax
    evasion, by the adjusting of your wage statements, HE could be
    liable for paying any amounts due on your behalf, along with any
    associated penalties or fines for the actions he has taken. It
    would be in your best interests here if you were to consult with a
    few WC attorneys….if the WC carrier were to deny your claim based
    on the fraudlent actions, ie non payment of premiums… you would
    have to go to court to get an order to pay benefits, and/or civil
    court to sue the employer for damages.

    #19547
  4. I really enjoyed this post. You write about this topic very well. A
    payroll company should recognize the needs of today’s small to
    medium sized business owner. Your time is priceless! You can’t
    afford to waste time on non productive/non revenue producing
    activities such as Payroll, HR, or Employee benefits. Your payroll
    company should specialize in filling this need for you and their
    staff of experts should consult with you to develop a payroll and
    business services plan that is custom-made to your exact situation.
    Your payroll provider should offer speedy and convenient online
    access for any payroll service, benefit or reporting need. It
    should assist employers in meeting business compliance issues today
    and in the future as your business grows in this aggressive
    environment. The advantage of out-sourcing your payroll is that it
    relieves you of the hassle and technicalities of running a business
    so you can focus on building your business.

    #19583
  5. I really loved this post. You describe this topic very well. A
    payroll company should understand the needs of today’s small to
    medium sized business owner. Your time is precious! You cannot
    afford to squander time on non productive/non revenue producing
    activities such as Payroll, HR, or Employee benefits. Your payroll
    company should specialize in filling this need for you and their
    staff of experts should consult with you to develop a payroll and
    business services plan that is tailored to your exact situation.
    Your payroll provider should offer quick and convenient online
    access for any payroll service, benefit or reporting need. It
    should assist employers in meeting business fulfillment issues
    today and in the future as your business thrives in this cutthroat
    environment. The advantage of out-sourcing your payroll is that it
    relieves you of the annoyance and technicalities of running a
    business so you can concentrate on building your business.

    #20024

Leave a Reply

*

Spam Protection by WP-SpamFree