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ESD denied my claim after quitting over tax fraud - employer never contacted for my side

I'm honestly shocked and need advice. I quit my accounting job ($40/hr as bookkeeper) because my employer was deliberately avoiding payroll taxes on employee bonuses. First time it happened, I processed bonuses properly through payroll with appropriate tax withholdings - got reprimanded for it. A month later, boss explicitly instructed me to process new bonuses ($500-1500 range) OFF payroll and code them as 'uniform expenses' (company doesn't even have uniforms). As the person signing quarterly tax forms, I wasn't comfortable falsifying documentation. I explained my concerns twice but was basically told to do it their way or else.\n\nJust got denied unemployment today. The determination letter says I 'failed to discuss changing illegal activities with employer' - except I absolutely DID. What's more frustrating is that no one from ESD even contacted me to hear my side before making this decision. How can they rule against me without investigating? I'm supposed to sign off on fraudulent tax documents to keep my job? Really regretting trying to do the right thing right now...

Paolo Longo

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You need to APPEAL this decision IMMEDIATELY! ESD didn't contact you because they probably only talked to your employer who obviously lied. I went through something similar (different situation but also quit for illegal practices). Appeals must be filed within 30 days of the denial determination. Don't wait!!

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Keisha Johnson

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Thanks, I'm definitely appealing. Just feeling blindsided that they made a decision without even asking for my evidence. Do I need a lawyer for the appeal hearing?

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CosmicCowboy

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omg this happened to my friend too! she got denied first then won on appeal. make sure u have any emails or texts where u talked to ur boss about it. the system is so unfair, they always believe employers first 😡

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Keisha Johnson

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Unfortunately our conversations were in person, so I don't have written evidence. I'm worried this will be my word against theirs.

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Amina Diallo

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As a former UI claims adjudicator, I can tell you that what you're describing is a strong case of

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Keisha Johnson

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This is incredibly helpful, thank you! I'll definitely emphasize those three points. Should I also mention that I was the one required to sign the quarterly tax forms, making me potentially liable for the fraud?

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Amina Diallo

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Yes, absolutely mention that you were required to sign quarterly tax documents. That's critical because it shows you would have been personally implicated in the fraud. Being asked to sign fraudulent tax documents creates personal liability and is a textbook example of good cause to quit.\n\nAlso, did you receive your determination letter via eServices or mail? The appeal deadline is typically 30 days from when the determination was mailed, not from when you actually received it. Don't wait to file your appeal.

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Keisha Johnson

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I got the letter yesterday through mail. I'll file the appeal online today to make sure it's submitted in time. Really appreciate your expertise!

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Oliver Schulz

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you should bring a lawyer to your hearing this is serious stuff with the IRS involved

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Natasha Orlova

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Not necessarily. Unemployment hearings aren't like court - they're informal administrative proceedings. While you can bring an attorney, many people successfully represent themselves. What's important is organizing your facts and clearly explaining why you had good cause to quit under the law. That said, if you can afford a consultation with an employment attorney, it might help you prepare better.

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Javier Cruz

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Try using Claimyr to get through to ESD before your appeal. I was in a similar situation where I needed to explain my side directly to someone at ESD. Spent 3 days trying to get through the phone lines with no luck. A friend recommended Claimyr (claimyr.com) - they got me connected to an actual ESD agent in about 20 minutes. They have a demo video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. Sometimes talking to a human at ESD can resolve things quicker than waiting for an appeal hearing.

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Keisha Johnson

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I didn't know this service existed - just watched the video. This might be perfect since I really just need to explain my side to someone. Will try this before going through the whole appeal process. Thanks!

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Emma Wilson

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Just a warning from someone who's been through an ESD appeal - start documenting EVERYTHING now. Write down exact dates of when you talked to your employer about the tax issue. Which tax forms you were worried about signing (941s, W-2s, etc). Look up the specific IRS regulations about bonus taxation. The more specific you can be at your hearing, the better your chances. Being vague in a hearing will hurt your case.

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Keisha Johnson

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Good point. I'll go through my calendar and note all the relevant dates. The forms were quarterly 941s and I was also concerned about year-end W-2s not matching what employees actually received. I'll look up the specific IRS requirements for documenting bonuses.

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Malik Thomas

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What kind of company was this? My brother had almost the exact situation at a construction company last year. The boss was coding bonuses as \

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CosmicCowboy

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THIS!!! My friend who went thru same thing worked at a restaurant where they were paying \

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Paolo Longo

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When you file your appeal, make sure you request a HEARING. Don't just ask for reconsideration. A hearing will let you explain everything verbally to the judge. And definitely prepare to explain why this wasn't just a disagreement over business practices but actual illegal activity. Big difference in ESD's eyes.

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Keisha Johnson

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Great tip - I'll make sure to specifically request a hearing. I've started working on my explanation of why this crosses the line from business practice disagreement to illegal activity.

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Natasha Orlova

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As others have said, you need to appeal right away. Just wanted to add that your case falls under what's called \

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Keisha Johnson

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Thank you for the specific statute! This is exactly the kind of information I was hoping for. I'll definitely cite this in my appeal letter.

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