YOU MAY HAVE SEEN TODD SPODEK ON THE NETFLIX SHOW INVENTING ANNA
When you’re facing a federal issue, you need an attorney whose going to be available 24/7 to help you get the results and outcome you need. The value of working with the Spodek Law Group is that we treat each and every client like a member of our family.
Unemployment Insurance Claim and Department of Labor Audit
Employers must classify workers as employees or as independent contractors. When a worker is classified as an independent contractor, the employer withholds no taxes and issues a 1099 at the end of the year. Because the worker is considered self-employed, the worker pays taxes on his or her own.
Employers must withhold taxes from wages paid to employees. New York law also requires employers pay unemployment-insurance taxes, which are used to fund the state’s unemployment insurance system. Misclassifying employees as independent contractors leads to a labor audit. A labor audit is an intensive process that looks for violations beyond misclassification of employees. Each violation comes with substantial penalties.
The difference between employees and independent contractors
The Internal Revenue Service (IRS) defines employees as workers who perform services that the business controls. A worker is considered an employee even if the employee has discretion and freedom of action. What matters is that the employer has the right to control the details of how work is performed.
If you are looking for a lawyer that listens, is aggressive where needed, and holds his word above all else, Todd is the best pick. I had hired multiple attorneys prior to hiring the Spodek Group for a white collar case. The first thing that stood out to me was the cost, as anyone going through the process and dealing with the system, money was tight at that time - especially after hiring and firing multiple lawyers. The cost was not as high as others which was definitely a plus. Todd's intake process was also unlike other attorneys. He took the time to actually listen. He cared. He was trying to put himself in my shoes while I was explaining the situation to him and he really took the time to understand the whole situation. Other lawyers will give you 15 mins and send you a retainer agreement. Not Todd, I think he spent almost two hours with me as I was explaining everything.Not only was he great during the onboarding process, he was supportive and very informative through the entire plea process and eventually sentencing. After hiring him, I asked if I should hire a prison consultant, he told me to save my money as he would do everything they would. He was right and held up to his word. Later on I would hear from others that went with the prison consultants that they were a waste of money - I am glad I listened to Todd!When it came time for sentencing, two days prior to sentencing, the prosecutor tried increasing my proposed prison time by almost double - apparently a normal move. Todd and his team worked with me non-stop through the weekend prior to sentencing to ensure that I was not given additional prison time. Again, he took the time to listen and came up with a strategy to explain the case with great detail.Unfortunately, I did plead guilty as that was my best option. Todd and his whole team wrote up nearly 300 pages of a summary of what happened and why I should not be given prison time. If I breakdown the amount I spent with Todd versus the amount of work that I saw being done, I am shocked I was not charged four times as much. The other benefit was, a lot of criminal defense lawyers were just a single attorney with a paralegal or two. Todd had a team of people that I dealt with (5-7 people that I interacted with), but he was ALWAYS accessible. It would never take him more than an hour to reply unless he was in court.I was sentenced to prison and I was emotionally distraught. Todd and his team did whatever they could even after sentencing to make sure I was alright. He personally stayed in touch with my family to ensure I was doing alright and offered support to them. Most lawyers would consider the job complete at sentencing, not Todd.After prison, Todd still spent time with me to make sure I was on the right track and avoiding any potential risks in the future. He has also been giving advice on how to navigate probation etc and has not been looking at the clock for billing.Although I wish I had never been arrested in the first place, I am glad I had Todd and his team in my corner. Without them I likely would have had to spend a lot more time in prison than I did.Thank you, Todd, and the entire Spodek Law team, for helping turn what was a nightmare into a manageable situation!
I am immensely grateful to the entire team at Spodek Law Group for their unwavering dedication and exceptional expertise throughout my case. From our initial consultation to the final resolution, their professionalism and tireless advocacy made all the difference. Their strategic approach and attention to detail instilled confidence in me every step of the way.Thanks to their hard work and commitment, we achieved a truly favorable outcome that exceeded my expectations. Not only did they navigate the complexities of my case with precision, but they also provided invaluable support and guidance during what was undoubtedly a challenging time. I cannot recommend Spodek Law Group highly enough, especially attorneys Todd Spodek and Claire Banks; they are beacons of excellence in the legal profession.YSP.
Todd, Ralph and Alex are amazing. Helped my husband get from a double digit number with multiple charges to a single digit, by the time I blink he will be out. They very professional and help with all your needs. They dealt with my anxiety and worry very well and they understand that your family member needs to get home as soon as possible.
Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.
I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence.Thank you team!
I recently had Spodek Law Group represent me for a legal matter in NYC and I am thoroughly impressed with their services.Alex Zhik secured the best possible outcome for my case.It was a seamless journey from the initial consultation to the resolution of my legal matter. From the moment I spoke to Todd about my case, his enthusiasm to help was evident, setting a positive tone for the entire experience. The efficiency and professionalism displayed by the team is commendable.A particularly noteworthy aspect of their service is their user-friendly portal to upload your documents/evidence. This not only simplified the process, but showcases their commitment to streamline the client experience.Lastly, in an industry where legal fees can often be a concern, I found their pricing to be very reasonable, making needing legal assistance feel accessible and stress-free.I am grateful for their support and wouldn't hesitate to turn to them again in the future.
On the other hand, the IRS defines an independent contractor as a worker who performs work not controlled by the employer. The employer may control the end result of the work but cannot specify the details of how the work is performed or where it is performed. Instead, the independent contractor is free to perform work on his or her own terms without the employer specifying what must be done and how it must be done.
In making this determination, the IRS examines three categories of the employment relationship: behavioral, financial, and type of relationship. Behavioral aspects are ones that determine if an employer controls what work is done and how it is done. For example, a salesperson required to staff the sales floor and wait on customers would be considered an employee based on the behavioral aspects of his or her work. Financial aspects relate to whether the payer controls the business aspects of the work, such as owning the equipment. Employers must also consider whether the type of relationship is contractual or employee-type.
Consequences of misclassification
Employers often get in trouble when a worker who was classified as an independent contractor files an unemployment insurance claim after termination. After the claim is filed, the unemployment insurance office investigates whether the employment relationship was classified correctly. If the department finds that the employee was misclassified, it will reward the employee unemployment insurance benefits.
This determination has adverse consequences for the employer because as a result of the misclassification, the employer failed to withhold taxes and pay unemployment-insurance tax. As a result, the State of New York will assess the employer the unemployment insurance taxes owed, in addition to penalties, interest, and fees.
Labor audits
In most cases, the discovery of an employee misclassification triggers a labor audit. During a labor audit, the state will look at the classifications of all employees to determine if the employer misclassified any other employees. Auditors generally look at the past three years. They will assess back payroll taxes and penalties for each instance of misclassification.
Labor audits go beyond classification. They also search for any employees paid off the books, as well as any wage and hour or minimum wage violations. Auditors will examine wage and timekeeping records. If legally required records are not in order, additional penalties may be assessed.
Intentional misclassification of workers
When employers intentionally misclassify workers, they open themselves to fraud charges. The State of New York considers misclassification to be an attempt to avoid compliance with multiple legal requirements beyond unemployment insurance, including workers’ compensation, social security, tax withholding, temporary disability, and minimum wage. A labor audit may bring charges in all of these areas.
The State of New York employs a joint task force in conducting investigations into worker misclassification. The task force includes the Department of Labor, the Attorney General’s Office, the Department of Taxation and Finance, the Workers’ Compensation Board, and the Workers’ Compensation Fraud Inspector General. The task force’s mission is to stop worker misclassification in order to ensure that workers receive the protections they are entitled to under the law. The New York Department of Labor also maintains a hotline where employee misclassification may be reported to the task force.
How to ensure against a labor audit
Employers must never intentionally misclassify employees. In cases where employers are unsure about legal classification, they should seek legal advice from a New York employment lawyer. Some cases of classification are obvious, while others may seem to fall in a gray area. An employment lawyer can accurately assess the classification and protect your business from a labor audit.
Employment law covers a vast number of regulations. Employers often find themselves facing audits or lawsuits because they were unaware of misunderstood regulations. Hiring an employment law firm to provide advice and counsel on employment issues can save a firm from experiencing a labor audit and the associated financial penalties.
