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Feds: Harrisburg leasing firms dodged payroll taxes

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in Employment Law,Human Resources

A federal grand jury has indicted three Harrisburg area men on tax evasion charges stemming from their operation of several worker leasing businesses. The U.S. Attorney alleges that the three men paid workers more than $7 million in wages from 2006 to 2012 but never withheld or paid federal income taxes.

Prosecutors estimate the evasion cost Uncle Sam $1 million in lost taxes.

Operating under the names Vanny and Son Services, Industrial Labor Services, Advance Labor Services, HD Staffing and TD Staffing, the men paid the leased workers in cash. An IRS investigation led to the indictments on charges of conspiracy, tax evasion and filing false tax returns.

Note: Employers using staffing agencies may run into trouble when government agencies investigate. The best move is to consult with your attorney before talking to investigators.

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