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agreement. They did not receive written notice of termination
either by Machise or by MIT 82. They did not submit formal
employment applications to MIT 83.
The employee leasing agreement required Machise to make
advances of cash to MIT 83. These cash advances were equal to
the actual costs of meeting the Machise payroll. During 1983,
Machise advanced $3,061,723 to MIT 83 to cover the payroll
costs.15
These weekly cash advances were transferred from a Machise
bank account to the MIT 83 Guarantee Bank payroll account. The
employees and independent contractors were paid by checks drawn
on this account and signed by Bucci.
Payroll taxes were withheld from employees' wages and
remitted to the appropriate State and Federal agencies under MIT
83's employer identification number. MIT 83 appeared as the
employer on the employment tax returns that were filed.
On February 26, 1983, the New Jersey Department of Labor
wrote to "William Bryen and Bruce Bryen, t/a MIT 83". The letter
stated that "our records indicated that you were not registered
under the New Jersey Unemployment Compensation Law". Machise,
not MIT 83, was listed as the insured on the Standard Workmen's
Compensation and Employer's Liability Insurance policy for the
15Machise ultimately advanced $189,908.85 more to MIT 83
than MIT 83 had advanced, as ten-elevenths of its capital, to
Machise. Therefore, Fred prepared a demand note without interest
in order to pay off the unpaid balance of this excess.
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