Thursday, August 17, 2006
News
Ambulance employees denied unemployment
By LIZ SHEPARD Argus-Press Staff Writer
BRYON - After being given only five days notice before they were laid off Aug. 13, former employees of the Byron Area Ambulance Service now are being denied unemployment checks.
“I was very shocked when they said they were closing,” said Kathy Mosholder who worked for BAAS as an EMT for almost seven years. “I'm very upset (about not receiving unemployment); I have four kids to support. I feel like it's a kick in the butt - first to be told you don't have a job in five days, then be told you can't collect unemployment.”
The ambulance service stopped making runs at noon last Sunday, resulting in 19 employees being laid off. Covering all of Burns Township, Byron, half of Antrim Township, and sections of Gennessee County's Agrentine and Gaines Townships, the nonprofit organization closed due to financial strains. Operational manager Glen Lacey said that the board of directors decided to close because they were already in debt and the run volume was too low to fund the service. The closure was announced Aug. 7.
Mosholder and three other former BAAS employees were informed they could not collect unemployment because BAAS had not made the necessary payments.
“Typically employers pay every quarter and it is a percentage of the first $9,000 of each employees salary,” said Norm Isotalo of the Michigan Department of Labor and Economic Growth. “The payments go into the state unemployment insurance trust fund account and from that account the employees are paid.”
An investigation is done to find out why the account does not have the proper funding to pay employees in situations like this, said Isotalo.
Mosholder said she was given a form that she must file with the department for the investigation to be started.
“They said it can take up to six months until I see anything,” she said.
All employers must be registered with the state, but governments and non-profit organizations do not have to make the quarterly payments, said Jim Demis of Demis and Wenzlick Accounting.
A non-profit organization such as BAAS has the option to register as a reimbursing employer. If this option is chosen, the state pays all unemployment and charges the organization or government the exact amount.
BAAS found it was not registered in 2005 when filling out an annual report for the State of Michigan when officials did not have the necessary six-digit unemployment number, said Demis. In early 2006 the proper paperwork was given to BAAS to apply to become a reimbursing employer.
Demis said the paperwork was most likely not sent in to the state, resulting in the group's lack of registration and the difficulties the employees are facing.
The state most likely will pay unemployment to Mosholder and other former employees, said Demis, although it may take some time. He also said BAAS will probably have to pay the state for the unemployment and may face penalties and fees for not being registered.
Working alongside Mosholder for one-and-a-half years, paramedic Mark Sias is now spending his time going to job interviews.
Sias said he was not expecting to lose his job and being denied his unemployment check is a disservice.
“I worked for them and now in my time of need they aren't there for me,” he said.
Lacey said he had no idea about the situation until Tuesday and believes it will soon be resolved.
Paramedic Richard Ballance said he has not decided if he will be filing for unemployment because of the difficulties his past co-workers are facing.
“I think (the board) has been aware of not being registered for months,” Ballance said. “All of the board meetings were closed to employees and we were not allowed to see any financial reports.”
“We knew there was a problem,” said Antrim Township Supervisor and BAAS board member Darrell Coffey. “According to financial statements we were behind with payments, but we didn't realize this was going on.”
“I was very shocked when they said they were closing,” said Kathy Mosholder who worked for BAAS as an EMT for almost seven years. “I'm very upset (about not receiving unemployment); I have four kids to support. I feel like it's a kick in the butt - first to be told you don't have a job in five days, then be told you can't collect unemployment.”
The ambulance service stopped making runs at noon last Sunday, resulting in 19 employees being laid off. Covering all of Burns Township, Byron, half of Antrim Township, and sections of Gennessee County's Agrentine and Gaines Townships, the nonprofit organization closed due to financial strains. Operational manager Glen Lacey said that the board of directors decided to close because they were already in debt and the run volume was too low to fund the service. The closure was announced Aug. 7.
Mosholder and three other former BAAS employees were informed they could not collect unemployment because BAAS had not made the necessary payments.
“Typically employers pay every quarter and it is a percentage of the first $9,000 of each employees salary,” said Norm Isotalo of the Michigan Department of Labor and Economic Growth. “The payments go into the state unemployment insurance trust fund account and from that account the employees are paid.”
An investigation is done to find out why the account does not have the proper funding to pay employees in situations like this, said Isotalo.
Mosholder said she was given a form that she must file with the department for the investigation to be started.
“They said it can take up to six months until I see anything,” she said.
All employers must be registered with the state, but governments and non-profit organizations do not have to make the quarterly payments, said Jim Demis of Demis and Wenzlick Accounting.
A non-profit organization such as BAAS has the option to register as a reimbursing employer. If this option is chosen, the state pays all unemployment and charges the organization or government the exact amount.
BAAS found it was not registered in 2005 when filling out an annual report for the State of Michigan when officials did not have the necessary six-digit unemployment number, said Demis. In early 2006 the proper paperwork was given to BAAS to apply to become a reimbursing employer.
Demis said the paperwork was most likely not sent in to the state, resulting in the group's lack of registration and the difficulties the employees are facing.
The state most likely will pay unemployment to Mosholder and other former employees, said Demis, although it may take some time. He also said BAAS will probably have to pay the state for the unemployment and may face penalties and fees for not being registered.
Working alongside Mosholder for one-and-a-half years, paramedic Mark Sias is now spending his time going to job interviews.
Sias said he was not expecting to lose his job and being denied his unemployment check is a disservice.
“I worked for them and now in my time of need they aren't there for me,” he said.
Lacey said he had no idea about the situation until Tuesday and believes it will soon be resolved.
Paramedic Richard Ballance said he has not decided if he will be filing for unemployment because of the difficulties his past co-workers are facing.
“I think (the board) has been aware of not being registered for months,” Ballance said. “All of the board meetings were closed to employees and we were not allowed to see any financial reports.”
“We knew there was a problem,” said Antrim Township Supervisor and BAAS board member Darrell Coffey. “According to financial statements we were behind with payments, but we didn't realize this was going on.”