When an employer pays an employee

Asked over 1 year ago - New Rochelle, NY

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?????

Attorney answers (4)

  1. Arthur H. Forman

    Pro

    Contributor Level 17

    3

    Lawyers agree

    Answered . If it is for work performed, then the check must include deductions for withholding taxes. Otherwise, it violates the law.

  2. Eric Edward Rothstein

    Contributor Level 20

    3

    Lawyers agree

    Answered . 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.... more
  3. Jayson Lutzky

    Pro

    Contributor Level 20

    2

    Lawyers agree

    Answered . 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... more
  4. William Fulton Broemer

    Contributor Level 14

    2

    Lawyers agree

    Answered . 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... more

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