Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Carl J. Greco, P.C. v. Department of Labor and Industry

Commonwealth Court of Pennsylvania

January 4, 2018

Carl J. Greco, P.C. a/k/a Greco Law Associates, P.C., Petitioner
v.
Department of Labor and Industry, Office of Unemployment Compensation Tax Services, Respondent

          Argued: December 7, 2017

          BEFORE: HONORABLE ROBERT SIMPSON, Judge HONORABLE ANNE E. COVEY, Judge HONORABLE DAN PELLEGRINI, Senior Judge

          OPINION

          ROBERT SIMPSON, JUDGE.

         Carl J. Greco, P.C. a/k/a Greco Law Associates, P.C. (Greco PC) seeks review of a final decision of the Department of Labor and Industry (Department). The Department denied a petition for reassessment of unemployment compensation (UC) taxes under the Unemployment Compensation Law (UC Law).[1] The Department concluded that payments from Greco PC to its sole shareholder and officer, Carl J. Greco, Esquire (Attorney Greco), were subject to UC taxation based on Attorney Greco's service as a corporate officer. Upon review, we affirm.

         I. Background

         Greco PC is a statutory S corporation. Greco PC is an employer under the UC Law. Attorney Greco is Greco PC's sole shareholder, officer, and director. He has sole control over all business activities. He decides what clients to accept, what fees to charge, and what employees to hire and fire.

         Attorney Greco does not collect a salary. Both he and Greco PC have characterized all payments from Greco PC to Attorney Greco as net profit distributions to him as sole shareholder. Greco PC did not pay UC taxes on the distributions to Attorney Greco.

         Following an audit, the Pennsylvania Office of Unemployment Compensation Tax Services (UC Tax Services) reclassified Attorney Greco as an employee for UC tax purposes and assessed UC taxes on Greco PC's distributions to him. Greco PC filed a petition for reassessment, which the parties submitted to the Department for a decision on briefs.

         The Department issued a final decision denying the petition for reassessment. The Department focused its analysis on Attorney Greco's status as an officer of Greco PC. The Department apparently did not dispute that both Greco PC and Attorney Greco characterized the monies at issue as distributions of net profits. Nevertheless, it concluded that as an officer, Attorney Greco is an employee for UC tax purposes.

         Greco PC filed a timely petition for review with this Court.

         II. Issues

         On appeal, [2] Greco PC presents four related issues for review, which we paraphrase as follows: (1) the Department's findings are not supported by substantial evidence because the Department failed to find that Attorney Greco is self-employed and not employed by Greco PC, and because there is no evidence of a contract for hire between Greco PC and Attorney Greco; (2) the Department committed legal error in concluding that Attorney Greco was an employee and that Greco PC's distributions to him were made with respect to employment; (3) the Department committed legal error in assessing UC taxes in light of Attorney Greco's ineligibility for UC benefits; and, (4) the Department committed legal error by relying on federal employment tax laws to support its analysis under the UC Law.

         Because Greco PC's arguments are closely related, we address them together.

         III. ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.