A Harrisburg businessman pleads guilty to tax evasion after failing to pay $216,000 in wage taxes between October 2006 and May 2011.
Howard Ginting, 30, was the sole owner of Ginting Enterprises, Inc., of Harrisburg. The company supplied day laborers to various businesses in central and northeastern Pennsylvania. As owner and operator, Ginting was required to withhold from the wages of GEI employees Federal Insurance Contributions Act (FICA) taxes on a quarterly basis.
From October 2006 through February 2008, Ginting Enterprises paid wages totaling approximately $851,553, but Ginting falsely reported to the IRS that he had only paid wages in the amount of approximately $68,549. The underpayment of Social Security and Medicare taxes was about $119,799.
In February 2008, Ginting shut down Ginting Enterprises and operated the same labor supply business under the name Trojan Services, Inc. Between February 2008 and May 2011, Trojan paid wages of approximately $638,477, but Ginting failed to report all wages paid to his employees, underpaying Social Security and Medicare taxes by approximately $97,047. The total underpayment to the IRS amounted to $216,846.
Ginting was indicted in January this year by a federal grand jury in Harrisburg following an investigation by the IRS.
Ginting faces up to 5 years in federal prison, a $250,000 fine, three years of parole as well as restitution, tax penalties and interest.
