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 the check is being called reimbursement for expenses and it is actually salary, that is not proper.
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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?
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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.
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