Dugan & Associates, P.C.
No Recovery - No FeeFree Consultation
Serving all of Western Pennsylvania
Local: 412-353-3572 Toll Free: 888-99-D-U-G-A-N Toll Free: 888-99-D-U-G-A-N

UPMC alleges it has no employees for tax purposes

Many people in injured in workplace accidents in the local area treat at UPMC. UPMC  in a recent hearing regarding their tax-exempt status indicated that they do no officially have any employees.

UPMC has explained through their lawyers in Common Pleas Court in font of Judge R. Stanton Wettick that for the purposes of Pittsburgh's annual wage tax, all of UPMC's thirty-seven subsidiaries each file separate forms. Since, as was explained, that all employees work for a separate subsidiary, UPMC has does not technically hire anyone, but encompasses all of its holings under the "UPMC" title for advertising and marketing purposes.

Judge Wettick ended the initial hearing directing that the court could not proceed until the UPMC employee issue is uniformly addressed or an amendment of the complaint is issued as a precursor for an argument from the city of Pittsburgh that can prove otherwise. Judge Wettick stated "...if UPMC has no employees, there's nothing more I can do."

However, UPMC's website's "Facts" page indicates that "UPMC is Pennsylvania's largest employer with more than 55,000 employees." Yet UPMC maintains that this is simply a marketing strategy that many other major business conglomerates have used in the past and are currently using. A UPMC spokesperson said that if the city of Pittsburgh wants to continue to challenger UPMC's tax-exempt status then they will have to do so on a "subsidiary by subsidiary basis."

An attorney for the city of Pittsburgh said that they are "going to amend the complaint to address Judge Wettick's concerns and we're confident that we can do that based on UPMC's. pronouncements that they have [more than 55,000] employees. The attorney thinks that UPMC's marketing strategy can be used against them.

The city of Pittsburgh is scheduled to file an amended complaint in about a week. The medical center will have a week to respond.

Also when UPMC made its way into U.S News & World Report's Best Hospitals list it reported that "UPMC" was a conglomeration of many separate facilities throughout the state not that it is just a tag used for nearly 40 different subsidiaries.

Source: Becker's Hospital Review, "UPMC claims it has no Employees to Keep Tax-Exempt status" (22 October 2013).



No Comments

Leave a comment
Comment Information

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Pittsburgh Office
4 West Manilla Avenue
Pittsburgh, PA 15220

Phone: 412-353-3572
Phone: 412-922-0800
Fax: 412-922-0801
Pittsburgh Law Office Map

Beaver County Office
2002 McMinn St.
Aliquippa, PA 15001

Phone: 412-353-3572
Phone: 724-775-7372
Aliquippa Law Office Map

North Hills
6400 Brooktree Ct.
Wexford, PA 15090

Phone: 412-353-3572
Phone: 724-933-0133
Wexford Law Office Map

Butler County
2009 Mackenzie Way
Suite 100
Cranberry Twp, PA 16066

Phone: 412-353-3572
Phone: 724-283-7063
Cranberry Twp Law Office Map

Monroeville
400 Penn Center Blvd.
Suite 101
Monroeville, PA 15232

Phone: 412-353-3572
Phone: 412-261-1129

Westmoreland County
101 N. Main St.
Suite 104 - A
Greensburg, PA 15601

Phone: 412-353-3572
Phone: 724-836-7454

Washington County
2400 Ansys Dr.
Suite 102
Canonsburg, PA 15317

Phone: 412-353-3572
Phone: 724-743-0463
Canonsburg Law Office Map

Serving all of Western Pennsylvania Free Consultation