USA UTAH unemployment tax

[eaglesfan146]

Single owner LLC in Utah supplies athletic trainings to multiple sporting events / group for most of the year.
All workers are 1099. The most they work is 100 hours a year. The person with the most pay, received $2200. The company does not have work every month of the year. Some workers decide not to take an assignment or work 1 assignment and don't come back for another assignment.
A representative from UTAH is saying unemployment taxes must be paid.
Between the low hours and income and the fact there are no layoffs, no one would ever qualify for unemployment.
I am looking for facts to help me appeal this ruling.

Thank you!

 

[Drmdcpa]

Single owner LLC in Utah supplies athletic trainings to multiple sporting events / group for most of the year.
All workers are 1099. The most they work is 100 hours a year. The person with the most pay, received $2200. The company does not have work every month of the year. Some workers decide not to take an assignment or work 1 assignment and don't come back for another assignment.
A representative from UTAH is saying unemployment taxes must be paid.
Between the low hours and income and the fact there are no layoffs, no one would ever qualify for unemployment.
I am looking for facts to help me appeal this ruling.

Thank you!

There is no employee relationship. Thus no payroll taxes should be owed. Workers comp might be needed, but not FUTA/SUTA/FICA.

It sounds like you are properly issuing 1099s due to lack of control.

The dollar amount and hours worked have no bearing on the taxes due or compensation method. If they are due, they are due on the first dollar. But again 1099s are not generally subject to payroll taxes.

I will research UT to see if it has any oddball exceptions to standard operating procedures, but I am currently not aware of any. If I find something, I will add to this thread.

On a side note, I would not make it a habit of talking directly to taxing authorities. Everything in writing and preferably with a licensed representative in the middle.

Ok I already checked. As suspected, UT defines wages with reference to the IRC, Internal Revenue Code. As such 1099 compensation is not considered wages, and thus not subject to payroll taxes.

 

[eaglesfan146]

Thank you so much!