Jump to content
All posts are moderated, so it will take time for your post to appear!
Search In
  • More options...
Find results that contain...
Find results in...
vidhya reddy

Vendor not releasing payment - Please assist

Recommended Posts

Hi,

 

I'm on EAD(not the primary applicant) and have my own s-corp since last year. Last year I worked for a client until November 2012 . The structure is my s-corp -> vendor company - > Implementation partner.

 

For the month of November 2012, the vendor company , released only half of my pay. But the implementation partner confirmed me that they released entire payment to the vendor company. I used to work on corp-corp basis with vendor company and I also have approved timesheets and invoice. I have sent them atleast 30+ emails and no response to emails and phone calls. 

 

My questions are:

 

1. What is the best possible way to get my money from vendor company

 

2. can I complain to someone regarding this? 

 

Please assist

Vidhya

 

 

Share this post


Link to post

You have nothing to do with the vendor. You have no contract with the vendor, only the employer has a contract with the vendor.

You get paid by your employer, not by the vendor. Your employer needs to pay you, no matter what.

The employer would have to deal with the vendor company. You need to stay completely out of that.

Your ONLY responsibility is to make sure you get paid.

If you don't get paid by your employer, file a complaint with DOL on form WH4. That complaint would be against the employer ONLY.

Share this post


Link to post

Did you even "read"

OP has its own corp and is having payment issues with vendor.

There is no employer here

You have nothing to do with the vendor. You have no contract with the vendor, only the employer has a contract with the vendor.

You get paid by your employer, not by the vendor. Your employer needs to pay you, no matter what.

The employer would have to deal with the vendor company. You need to stay completely out of that.

Your ONLY responsibility is to make sure you get paid.

If you don't get paid by your employer, file a complaint with DOL on form WH4. That complaint would be against the employer ONLY.

Share this post


Link to post

Joef..OP said that she has her own company. That means she's her own employer..in that case she cannot file a complaint with DOL I guess. But she can definitely approach an Labor attorney and Sue the Vendor.

Share this post


Link to post

Hi Omshiv,

 

Thanks for your reply. Can I really approach labor attorney in this case?  If so can you please let me know how to contact them. Or any kind of  info is of a great help.

 

I have the all the documents contract between my s corp and vendor company and all other documents like approved timesheet , invoice etc..

 

Thanks,

Vidhya

Share this post


Link to post

Hi JoeF,

 

Thank you for you reply. As others mentioned, I have my own S-corp and I'm working through my s-corp. I don't have any employer in this case.

 

I was working on corp-corp basis with the vendor company. I have all the signed contracts , approved timesheets and invoices. But still they are not releasing half of my November pay.I have followed up for almost 6 months now but of no use.

 

I really want to get that money back and I'm very frustrated by their unprofessional behavior . Please let me know the best possible way.

 

Thanks,

Vidhya

Share this post


Link to post

Hi,

 

I'm on EAD(not the primary applicant) and have my own s-corp since last year. Last year I worked for a client until November 2012 . The structure is my s-corp -> vendor company - > Implementation partner.

 

For the month of November 2012, the vendor company , released only half of my pay. But the implementation partner confirmed me that they released entire payment to the vendor company. I used to work on corp-corp basis with vendor company and I also have approved timesheets and invoice. I have sent them atleast 30+ emails and no response to emails and phone calls. 

 

My questions are:

 

1. What is the best possible way to get my money from vendor company

 

2. can I complain to someone regarding this? 

 

Please assist

Vidhya

I guess you need to contact some attorney.

Share this post


Link to post

 

Thanks for your reply. Can I really approach labor attorney in this case?  If so can you please let me know how to contact them. Or any kind of  info is of a great help.

 

 

 

 

Yes, you should. I dont know of any specific Labor Attorney...google it.

Share this post


Link to post

Joef..OP said that she has her own company. That means she's her own employer..in that case she cannot file a complaint with DOL I guess. But she can definitely approach an Labor attorney and Sue the Vendor.

Oh, I overlooked that.

First, the OP has issues with it being an S-Corp, because of the requirement that all shareholders of S-Corporations have to be US citizens or Permanent Residents.

Second, there is no labor stuff here.

All the OP could do is sue the vendor in civil court.

Share this post


Link to post

Hi JoeF,

 

Thank you for you reply. As others mentioned, I have my own S-corp and I'm working through my s-corp. I don't have any employer in this case.

 

I was working on corp-corp basis with the vendor company. I have all the signed contracts , approved timesheets and invoices. But still they are not releasing half of my November pay.I have followed up for almost 6 months now but of no use.

 

I really want to get that money back and I'm very frustrated by their unprofessional behavior . Please let me know the best possible way.

 

Thanks,

Vidhya

If you have a company, why are you posting on a forum instead of going to your lawyer???

This is just contract law, nothing else.

You would have to sue the vendor.

And you have an issue with the company form as well.

Share this post


Link to post

Joef..OP said that she has her own company. That means she's her own employer..in that case she cannot file a complaint with DOL I guess. But she can definitely approach an Labor attorney and Sue the Vendor.

If a person runs his or her own company, then the labor law rules don't apply.

Labor law applies to employees, not to the company owners.

This this is contract law. There is a contract between two companies. If one company doesn't fulfill the contract, then the other company can sue them in civil court.

That's it.

This is the cost of running a business. I find it bad that the OP goes to a forum to get free help, when he should have gone to his lawyer.

I am all for helping employees who get screwed over, but somebody who runs a business should really know what he does.

Share this post


Link to post

If a person runs his or her own company, then the labor law rules don't apply.

Labor law applies to employees, not to the company owners.

This this is contract law. There is a contract between two companies. If one company doesn't fulfill the contract, then the other company can sue them in civil court.

 

 

 

Oh ok...Thanks for the info JoeF. So OP needs to approach an Attorney who handles Civil matters?

 

OP is a He and is from Andhra Pradesh who speaks Telegu.

Share this post


Link to post

Oh ok...Thanks for the info JoeF. So OP needs to approach an Attorney who handles Civil matters?

 

OP is a He and is from Andhra Pradesh who speaks Telegu.

He would have to approach a lawyer who handles contract matters. Normal businesses have such lawyers, because contracts between businesses are usually checked by the company lawyer before signing them.

Contracts often go back and forth a few times to clarify some clauses. This is all standard stuff between companies.

Me thinks that the OP is in this way over his head.

Share this post


Link to post

Oh ok...Thanks for the info JoeF. So OP needs to approach an Attorney who handles Civil matters?

 

OP is a He and is from Andhra Pradesh who speaks Telegu.

 

Im sorry OP is a woman.

Share this post


Link to post

Oh ok...Thanks for the info JoeF. So OP needs to approach an Attorney who handles Civil matters?

 

OP is a He and is from Andhra Pradesh who speaks Telegu.

 

Nobody could have guessed that !!!!

 

As per JoeF, shouldn't OP's S-Corp be illegal?

Share this post


Link to post

Nobody could have guessed that !!!!

 

As per JoeF, shouldn't OP's S-Corp be illegal?

 

yah it seems OP is absconding ever since JoeF pointed that out :)

Share this post


Link to post

Nobody could have guessed that !!!!

 

As per JoeF, shouldn't OP's S-Corp be illegal?

I mentioned that earlier...

"First, the OP has issues with it being an S-Corp, because of the requirement that all shareholders of S-Corporations have to be US citizens or Permanent Residents.

Second, there is no labor stuff here."

Share this post


Link to post

Oh, and btw, that's not from me, that's from a number of CPAs. Can't post the links here, though, since .com links are not allowed here.

Share this post


Link to post

yah it seems OP is absconding ever since JoeF pointed that out :)

I think the main issue here is this:

"Me thinks that the OP is in this way over his head."

 

Running a company is more complex than the OP expected...

There are lots of things to be considered, from company form to business insurance to having a business lawyer, and understanding contracts...

Share this post


Link to post

S-Corp not allowed by EAD/H1  is a concept floated by "some"  (not many)  CPAs  who apparently do not have any clue that H1/EAD are considered as "Resident Alien".  Those CPAs consistently use a term "Permanent Resident Alien"  while no such term exist anywhere in Tax Laws. 

However,  ever since I took interest in this topic  , I have contacted soem such CPA who floats this theory and many of them stood corrected.  Some even updated their website.   I now have a couple of Thank you mails from such CPA firms :)

 

 

This thread (http://forum.murthy.com/index.php?/topic/53040-h-4-visa-and-want-to-be-shareholder-in-s-corp/)  has a long discussion on S-Corp including some comments by one of Murthy Attorney AND the  law text extract.    It also has refernce to NJ Treasury Website (http://www.state.nj.us/treasury/taxation/pdf/scorp.pdf )  which clarifies  that a Green Card holder as well as Resident Alien can be a shareholder of S-Corp .  Note they make a clear differentiation between Green Card holder and Resident Alien (H1/EAD etc.)

Edited by chakrakr

Share this post


Link to post

Sigh. The tax code has two "resident" definitions, and the one for S-Corporations is the "Permanent Resident" definition.

Share this post


Link to post

S-Corp not allowed by EAD/H1  is a concept floated by "some"  (not many)  CPAs  who apparently do not have any clue that H1/EAD are considered as "Resident Alien".  Those CPAs consistently use a term "Permanent Resident Alien"  while no such term exist anywhere in Tax Laws. 

However,  ever since I took interest in this topic  , I have contacted soem such CPA who floats this theory and many of them stood corrected.  Some even updated their website.   I now have a couple of Thank you mails from such CPA firms :)

 

 

This thread has a long discussion on S-Corp including some comments by one of Murthy Attorney AND the  law text extract.    It also has refernce to NJ Treasury Website (http://www.state.nj.us/treasury/taxation/pdf/scorp.pdf )  which clarifies  that a Green Card holder as well as Resident Alien can be a shareholder of S-Corp .  Note they make a clear differentiation between Green Card holder and Resident Alien (H1/EAD etc.)

 

 

Oh..Thank you for the clarification chakrakar..can you pls someday explain what does your name mean?

Share this post


Link to post

Sigh. The tax code has two "resident" definitions, and the one for S-Corporations is the "Permanent Resident" definition.

Why don't you quote the tax code and show that ?   You shoudl also probably advise NJ Treasury

Edited by chakrakr

Share this post


Link to post

Oh..Thank you for the clarification chakrakar..can you pls someday explain what does your name mean?

Why do you care Mumbaikar .  BTW ,  though not Marathi me Mumbaikar ahe (hope the translation is correct )

Share this post


Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×