After the urging of Hudson County Commissioner Bill O’Dea, the City of Jersey City will investigate payroll tax payments at 88 Regent St. after a state probe led to the contractors for the high-rise being fined $1.3 million for labor violations.
By John Heinis/Hudson County View
“I am formally asking that you immediately initiate an investigation and audit into this project as it relates to payment of the municipal payroll tax,” O’Dea said in a statement directed at the city after the outcome of the state probe was revealed this afternoon.
“It appears on the face of it that if the state investigation resulted in people being paid off the books and as independent contractors to avoid paying workers their full wages and benefits, [it’s likely] that the LLC also evaded payment of all or some of its payroll tax obligations to Jersey City. I would hope that the city law requires any party who knowingly evades payment of payroll taxes to bear additionally, the cost of the audit.”
In conjunction with New Jersey Department of Labor, the state Department of the Treasury’s Division of Taxation investigated 21 of the subcontractors and found that 14 had pending tax issues and one out-of-state contractor was served a jeopardy assessment warrant for non-compliance.
Investigators from the Division assessed the 14 non-compliant businesses a total of $104,092 in back taxes and have collected $46,597 to date.
The general contractor of the private construction project, Grand Street Construction of Jersey City, can be held responsible for the unlawful actions and back wages of its sub-contractors per state law.
City spokeswoman Kimberly Wallace-Scalcione said they would heed O’Dea’s advice and look into whether or not the owner’s of the building were up to date on their payroll tax payments.
“We agree with Commissioner O’Dea and will begin the process of verifying the accuracy of any payroll tax payments paid,” she wrote in an email.
