W. Va. WCC, Tax Department Revoke More Licenses

April 11, 2005

In a second round of business license revocations, more than 250 defaulted West Virginia employers received notice last week that they must close their doors.

The employers reportedly owe the state Workers Compensation Commission nearly $2.6 million in premiums, interest and penalties.

The state Department of Tax and Revenue, working in cooperation with the Commission, issued business registration certificate revocation notices to 263 businesses in total.

Following a similar notice to nearly 400 companies in late December, employers returned 115 accounts to good standing, paying the Commission about $495,000.

“Obviously, it has been well worth the effort,” said Executive Director Gregory Burton. “Companies that don’t pay their fair share expose themselves and their employees to risk in the event of a workplace injury or illness. They enjoy an unfair advantage over their competitors who do pay their premiums on time – and they’re breaking the law.”

Each of the defaulted companies has been listed on the Commission’s Employer Violator System. Each has reportedly received at least four notices over a period of several months before the Commission turned their names over to the Tax Department for action on their business licenses.

Some of the accounts owe small balances, have a zero balance, or even have a credit balance. These companies have not filed all payroll reports and thereby are in default; the balance due is estimated
because of the missing reports. They are out of compliance with the workers’ comp law.

Under the Employer Violator System, any individual who owns, controls or has an interest of 10 percent or more in a company on the Commission’s default list will not be able to obtain any state license, certificate or permit for any other company until the outstanding balance is paid or a repayment agreement is established.

Repayment agreements typically require the employer to deposit at least 25 percent of the outstanding debt. The Commission works with employers to establish a payment schedule for the remaining debt at 8 percent interest.

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