when an employer pays an employee their weekly pay check; but then writes a separate check for a different amount each week to same employee and calls it expenses , when it is not....is that legal?????
If it is for work performed, then the check must include deductions for withholding taxes. Otherwise, it violates the law.
Criminal Defense Attorney
If the check is being called reimbursement for expenses and it is actually salary, that is not proper.
I am a former federal and State prosecutor and now handle criminal defense and personal injury/civil rights cases. Feel free to check out my web site and contact me at (212) 577-9797 or via email at Eric@RothsteinLawNY.com. I was named to the Super Lawyers list as one of the top attorneys in New York for 2012. No more than 5 percent of the lawyers in the state are selected by Super Lawyers. The above answer is for informational purposes only and not meant as legal advice.
If it is for expenses it will still be reported to the government. If it is not for expenses, then maybe a 1099 issue if independent contractor. I suggest you speak with a CPA. Why not give them a credit card for business expenses?
If this answer is helpful, then please mark the helpful button. If this is the best answer, then please indicate it. Thanks. For further information you should see an attorney and discuss the matter completely. If you are in the New York City area, then you can reach me during normal business hours at 718 329 9500 or www.mynewyorkcitylawyer.com.
Employee Benefits Lawyer
If I understand your question correctly, the employer is giving the employee a weekly check which purports to be for expenses, but it is not actually an expense reimbursement. If an employer disguises compensation as expense reimbursement for the purpose of committing tax fraud, that is a violation of the Tax Code and can be prosecuted by the IRS and Department of Justice. However, in practice, the government is more likely to simply reclassify the checks as compensation.
Your question has been answered as a courtesy. This is not paid legal advice. Nothing in this communication is intended to create an attorney-client relationship. Unless expressly stated otherwise, nothing contained in this message should be construed as a digital or electronic signature, nor is it intended to reflect an intention to make an agreement by electronic means.