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Verizon pays $317k to resolve allegations that it underpaid the Mass. unemployment fund

May 23, 2012 01:14 PM

By Chris Reidy Globe Staff

Subsidiaries of Verizon Communications Inc. have agreed to pay more than $317,000 to resolve allegations that they failed to pay their full unemployment contributions to the Commonwealth’s unemployment trust fund, the office of Massachusetts Attorney General Martha Coakley said Wednesday in a press release.

The settlement follows an investigation by a unit of the state’s Executive Office of Labor and Workforce Development, which was targeting employers that fail to pay their quarterly unemployment contributions.

The investigation determined that the Verizon subsidiaries owed more than $317,000 in employer contributions for 2010 and 2011. The case was referred to Coakley’s office.

Under the settlement, the subsidiaries, Verizon Service Corp. and Verizon New England, have made a lump sum payment of $317,909.45 to the Commonwealth, Coakley’s office said.

In an e-mail, a Verizon spokesman said an “honest dispute” arose over Verizon’s contributions to the state’s unemployment fund when a number of employees were transferred from one Verizon unit to another. He added that Verizon contributed $7.5 million to the state’s unemployment fund during 2010 and 2011.

“We are a good corporate citizen and given the amount and the unique facts, we paid the attorney general in full without admitting any wrongdoing,” he wrote in the e-mail.

Chris Reidy can be reached at reidy@globe.com.



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