A client and I have parted ways. He still owes me a lot of money, most of which is way past due. He promised to pay within 14 business days of our parting ways. That time has expired. Is it ethical for me to withhold final pieces of information - EFTPS and state payroll tax log in & passwords - until I receive payment in full?
There often is dicussion on these forums over the concept of what constitutes your "work product."
For me, I would not provide the data file and would provide reports, under this situation.
If the log in is theirs originally and not yours, they can get new ones issued. But if you registered in their name with you as the contact, you were acting as their agent, so I would not hold those back.
I would document the situation with the person. Even if you type a letter and send it to them and have no response or proof of their participation in what you understood, the letter alone stands as proof of notification. And if you have some proof, don't overlook including text such as "collection service" in the final letter to them!
Ethical - not in my opinion
Legal - maybe.
Are you a Circular 230 preparer? CPA? EA? Bookkeeper?
IMHO, it would hinge on whether those items are considered work product - and I don't believe they would be. They are HIS log-ins & passwords, not yours. You were just using them on his behalf.
Take the high road, provide the info, then take him to small claims.
I am just a plain old bookkeeper. But that's doesn't mean I don't wish to abide by ethical guidelines I would be bound to if I had any accreditations.
Technically, the accounts were created by me. He had no payroll before he hired me. Does that mean this is my "work product"? Like the previous post said, that's a gray area it seems.
Knowing this guy the way I do, I just know if he doesn't still need information from me he has no incentive to pay me.
You could cancel the log in account access. That would close the door on this being an issue for either of you.
Did you have them sign a "work for hire" agreement or any other agreement that outlines the terms of your relationship? If not then you can try and withhold but the question of ethics comes into play. I suggest you contact them and remind them about the payment (not that they have forgotten) and ask for payment now. Suggest that you have information you'd like to send them as the final closure to your relationship and you will as soon as you receive payment.
Do you take credit cards or use paypal? If so maybe that's a way to get payment sooner. If you turn over the information it sounds like the liklihood of you getting paid is slim. In the future you need agreements in place to cover the terms of your relationship and watch how much work you do without getting paid.
