Labor Smart Inc (LTNC)

[DD2Gain]

Your company could be liable if a staffing agency is supposed to pay employment taxes to the IRS but doesn’t. Your potential liability depends on the taxes involved and your contract with the staffing company.

http://topics.hrhero.com/temporary-employees-and-employment-law/#


So, how exactly does this square with your assertion that

The clients don't pay for taxes or anything else, they just pay temp staffing and temp staffing assumes all the tax etc. obligations.

Ryan Schadel's payment arrangement for $5,0000 per month, then $10,000 per month, then $15,000 per month for an unknown number of months on an unknown amount of delinquent payroll taxes has to feel like a ticking time bomb to past clients and is a huge warning sign to future clients. It goes a long way toward explaining the 60% drop in revenue growth despite the 107% branch expansion. Nobody likes to have their money gambled with especially when that's not what Ryan Schadel was entrusted to use the payroll tax money for.