AboutMike Wellman Expertise I can answer questions dealing with financial accounting, tax accounting, bookkeeping and payroll issues. NO PENSION questions.
Experience Certified in 1980. Experience with Fortune 15 company in finacial accounting, manager at Price Waterhouse and then over 20 years with small business clients.
Question question. My job seems very shady. To make a long story short, its a family owned business. Every week the father comes into my office and changes his expense amount. It is usually half his salary.
Example: his weekly salary is $2750. He tells me to put his "salary in paychex" as $1250 and he wants a weekly $1500 expensive reimbursment. He has been doing this since I started here. Is this tax fraud? HE gave me sopme bullshit excuse that its a loan being paid back to him and the mother. But he is not being taxed on it....my being the payroll supervisor, I am getting worried about my future if anything goes down. Does this situation seem fishy to anyone?
Answer It sounds fishy but I do not really have all the facts to make that determination. If he has no receipts to back up his expense report though I would say that is a strong indication. On the other hand, there may be a loan from officer on the books in which case it is OK. Also, if it is a Sub S corporation, he can take non-salary distributions that are not subject to payroll taxes but will eventually show up on his personal tax returns as taxable distributions.
