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SEMINAR RAISES UNIONS' IRE

 SEMINAR RAISES UNIONS' IRE
 PORTLAND, Ore., Aug. 27 /PRNewswire/ -- The following was released


today by Linoleum, Carpet and Soft Tile Applicators, Local No. 1236:
 As the Social Security system totters, the federal debt soars and Oregon reels from Measure 5, one seminar promoter is coming to town to teach Oregon businesses how not to pay any payroll taxes. It has Portland's Building Trade unions seeing red.
 The seminar purports to teach businesses to avoid payroll taxes by, in part, changing employees to "independent contractors" status. It is supposed to be the rules you have when you contract work to another entirely independent company.
 But the one day course, How to Use Independent Contractors and Satisfy the IRS and the State, taught by attorney James Urquahart III goes a lot further, these unions claim. The promotional materials teach "How to legally avoid FICA and other payroll taxes like state unemployment insurance, income taxes..." and tells participants about the "tax amnesty period in which employers can convert workers from independent contractor to employee proposed to start in 1993."
 "It sounds like tax evasion to us," said Bill Wilkerson, business representative for the Linoleum, Carpet and Soft Tile Applicators, Local No. 1236 in Portland.
 The Unions lose business to contractors who, instead of employees, have these kinds of arrangements with workers, who sign because they have little choice.
 "It's sign or walk," said Wilkerson, but they are signing away social security, unemployment benefits and workers compensation coverage if they get hurt on the job." Protest Demonstration
 Red Lion Hotel
 Jantzen Beach
 909 N. Hayden Island Drive, Portland
 Thursday, Aug. 27, 1992 9 a.m. to 4 p.m.
 It's clearly illegal, according to the Internal Revenue Service, who is cracking down on such abuses, according to Portland CPAs Ivey, Jacobson and Stone. They warn employers about adopting such practices - - and penalties can be severe.
 Contractors who pay no payroll taxes can underbid on construction projects and the abuse is rampant in the state's school districts and public construction projects, although Federal and state laws prohibit these abuses.
 "The officials look the other way," Wilkerson said, pointing out the unions are making a concerted effort to correct these abuses. "We don't mind fair competition, but when someone breaks the law to lower their bid, and puts an unfair tax burden on the rest of us, that's unfair.
 "And when a so-called consultant comes to town to tell people how to get away with it, we picket."
 -0- 8/27/92
 /CONTACT: Bill Wilkerson of Local 1236, 503-265-8444 or Jason Reynolds of the Creative Factory, 503-225-0686, for Local 1236/ CO: Local 1236 ST: Oregon IN: SU:


RM -- SE013 -- 4031 08/27/92 14:54 EDT
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Publication:PR Newswire
Date:Aug 27, 1992
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