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Businessman wrongly fined $10,000 by state unemployment agency

Posted at 6:29 PM, Aug 12, 2015
and last updated 2015-08-12 18:29:08-04

GRAND HAVEN, Mich. -- A $10,000 surprise came in the mail for Dwane Nyquist. However, it wasn't a check. It was a hefty fine from the Michigan Unemployment Insurance Agency.

The entrepreneur and classic car enthusiast got the letter on Saturday. It demanded he pay $10,276.07 in delinquent taxes. Basically, the state said he needs to pay into the unemployment insurance fund for employees.

"I'm a self-employed company, sole proprietor. I do not have employees. So I am not liable for these taxes," he explained.

According to state law, self-employed, sole proprietors don't file W-2s, can't receive unemployment benefits and therefore don't pay into unemployment insurance.

Despite all of that, there didn't seem to be much room to complain. The letter states "this notification cannot be protested."

"It was such a bold statement that made me feel like I was handcuffed," Nyquist said.

Nyquist called the agency anyway that Monday, who obviously agreed there was a mistake--they dropped his fine.

Now, the businessman wants anyone else who could be dealing with the same issue to know they do have options.

Watch the video for more

The agency told FOX 17 businesses are being told on the notices they send out to contact the agency if there are any questions.

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