I would be looking at other options for employment for yourself, as well as investigating your own situation. If he did it to them... He may have done it to you too. And this guy may be in some deep crapola soon.... Although it seems your state is more casual about this, other state would have his head, not withstanding Federal obligation as well. And the feds have different ideas of what constitutes an employee, by what-ever name you call them. An independant contractor who gets paid with a regular pay check by the hour, is an employee to them.

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WHAT HAPPENS IF I DO NOT PAY MY UNEMPLOYMENT TAX?

As explained above, you are liable for interest and penalties if you do not file reports and pay your tax by the required due dates. You will be notified in writing of any amount assessed against you, and you may be contacted by a field auditor who will attempt to collect the amount due.

Your unemployment tax and any related penalty or interest is a legal obligation imposed upon you as an employer. There is no authority in the law to reduce, compromise or eliminate any portion of this obligation, and the division must make every effort to collect it. However, we recognize that you may encounter financial difficulties which may delay your ability to pay your taxes. Partial payment plans which allow you to pay your delinquent balance in installments may be arranged in some cases. However, you will continue to incur interest charges on the unpaid balance.

If you refuse to pay the tax, interest and penalties assessed by the division, we will proceed with legal action in an effort to recover the amount due. Several methods are used to collect taxes that are due, including:

1. Filing a tax lien on your real and personal property.


2. Issuance of a temporary injunction on the operation of your business.


3. Initiating civil action for payment.


4. Levy against assets, including bank accounts, wages and accounts receivable.


5. Attaching and causing the sale of real property.
From: http://www.oet.ky.gov/des/ui/emguide/page10.asp

Also see: http://www.lrc.state.ky.us/KRS/341-00/CHAPTER.HTM


Mark Heller
"Well - I oughta....." -Jackie Gleason