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To: Les H who wrote (11303)	6/20/2003 11:28:31 AM
From: MulhollandDrive	Read Replies (1) \| Respond to of 306849

i don't think i would consider such a maneuver an "accounting practice"...as long as the subsidiary has been created within legal guidelines, a company has the right to establish any subsidiary as a function of it's business and assign employees accordingly....obviously when it affects the state's coffers, motives become the issue as it becomes a tax avoidance maneuver. Federal labor officials told a Congressional panel on Thursday they plan to propose legislation to end a controversial accounting practice that has recently surfaced in North Carolina. In the past few months, N.C. officials have been cracking down on a practice in which companies move employees into newly formed subsidiaries for the purpose of reducing the amounts they pay in unemployment tax. State officials worry the maneuver is depriving the state of millions of dollars in revenue used to pay benefits for jobless workers. ..