Defending Small Business Against Unfair Payroll Tax Hike

We immediately identified that the state’s classification of the layoffs was erroneous given the circumstances of the mandatory shutdown. By thoroughly documenting the business’s COVID-related closure, citing applicable executive orders, and tying unemployment claims directly to the government-mandated shutdown, we built a strong foundation for administrative appeal. Our approach focused on advocating aggressively within the procedural framework while maintaining detailed evidence and timelines to support the business’s case.

We created a comprehensive argument customized to the IDES’s appeal standards, including affidavits, closure orders, and employee separation records. Our submission demonstrated that the layoffs were not employer-driven decisions but the result of compliance with state health mandates, which should not trigger higher unemployment tax liability.

We managed every aspect of the appeal process, from filing initial objections to coordinating correspondence with IDES appeals officers. Throughout the process, we carefully controlled the narrative, presenting the business’s story in a way that resonated with the agency’s criteria for exemption from standard layoff penalties. Our precision-driven approach ensured a clean and persuasive record that led directly to a successful reclassification and rate reduction.

We established an annual internal audit system for the business’s employee separation documentation to ensure any future involuntary terminations — especially in cases beyond the employer’s control — are properly documented and defensible against potential future rate hikes. Additionally, we continue to monitor IDES policy changes to anticipate and respond to any shifts that could impact the client's payroll tax exposure.