UNEMPLOYMENT INSURANCE - WHAT HAPPENS IF EMPLOYER DOES NOT PAY TAXES

The Unemployment Insurance Law also provides for some penalties:

"Sec. 630. Penalties. Any misdemeanor defined in this title shall be punishable by a fine of not more than five hundred dollars or imprisonment for not more than one year, or both. The penalties and misdemeanors imposed by this title are in addition to those otherwise prescribed in this entire article.

Sec. 631. Corporation officers` liability. If a corporation is convicted of any violation under this title, the president, secretary, treasurer, or officers exercising corresponding functions shall each be guilty of a misdemeanor.

Sec. 632. False statements or representations.

1. Benefits and contributions. Any person shall be guilty of a misdemeanor who wilfully makes a false statement or representation
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(b) in order to reduce the amount of contributions to the fund.

2. Saleprice of commodities. Any person who, in connection with the sale or offer for sale of any commodity or service, or for the purpose of making such sale, makes any statement, written or oral, ascribing a particular part of the price of such commodity or service to a contribution imposed under this article knowing that such statement is false or that the contribution is not so great as the portion of such price ascribed to such contribution, shall be guilty of a misdemeanor.

Sec. 633. Wilful failure to pay contributions.Any person who wilfully refuses or fails to pay a contribution to the fund shall be guilty of a misdemeanor.

Sec. 634. Refusal to permit inspections of records. Any person who refuses to allow the commissioner or his authorized representative to inspect his payroll or other records or documents relative to the enforcement of this article shall be guilty of a misdemeanor.

Sec. 635. Deductions from wages. Any employer who shall make a deduction from the remuneration of any employee to pay any portion of the contribution which the employer is required to make shall be guilty of a misdemeanor."