- 5 -
Petitioner did not recall ever telling the employees they were
“fired”.
The payroll company did not make any of the decisions
regarding the employees, for example who would be hired or fired
and how much they would be paid, or otherwise supervise the
day-to-day activities of the workers. After the fall of 2000,
petitioner continued to make all the hiring and firing decisions
with respect to employees of the concrete business. Similarly,
after the fall of 2000, petitioner or supervisors of B&B
continued to give the day-to-day instructions to employees of the
concrete business. In general, employees were the same
individuals, performed the same type of work, were supervised the
same way, and were paid the same amounts both before and after
petitioner began paying the employees through the payroll
company.
The payroll company set up two payroll accounts with
Paychex, a large processing company. Pursuant to this new
payroll system, instead of receiving one paycheck, each employee
received two. The first paycheck covered the minimum wage that
State law required. The balance due an employee, called a
“dividend” payment, was paid in a second check from an account
under the name of Labor Force Partners Trust. Petitioner did not
pay employment taxes or workers compensation on the portion of
the wages greater than the minimum wage.
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