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To: GraceZ who wrote (51519)	4/6/2006 11:34:28 AM
From: ChanceIs	Read Replies (1) \| Respond to of 306849

>>>All it would take is one call to the fraud division of the IRS and he's taking a vacation in West Virginia in minimum security.<<< While what your friend did with his mother appears unethical, and would certainly be frustrating to the other employees, I see nothing at all illegal about it. I don't think there is a law which requires equal output for equal pay. Our system is horrible. There are so many ways to abuse it, and a lot of intellectual effort is spent to do just that. I sometimes wonder if you don't have to seriously cheat, just to stay even. By in large the federal government is much too big and is doing things for which it was never chartered.

To: GraceZ who wrote (51519)	4/6/2006 12:51:05 PM
From: BWAC	Read Replies (1) \| Respond to of 306849

<I have a good friend who put his mother on his payroll, she was getting older and couldn't make it on her SS check so he just hired her (and of course she has no duties). The guy runs a small company that has revs in the 2 million range and he does this. Since I was a good friend and he announced this in front of other people who are not good friends I felt compelled to take him aside and tell him he is nuts to think he can do this. He's already had disgruntled employees who have sued him for various things. All it would take is one call to the fraud division of the IRS and he's taking a vacation in West Virginia in minimum security.> Thats not fraud. Its stupidity multiplied by the 15.4% Social Security and Medicare payments required. The IRS doesn't legislate stupid business decisions. She could be on the payroll as Executive CEO of Lunch Appointments for the All Knowing Head Chieftain if that is what the owner wanted. Its a payroll expense just the same. IRS gets paid similar taxes either way. Thru the business earnings or the income taxes on the 'extra' payroll plus 15.4%.

To: GraceZ who wrote (51519)	4/6/2006 1:07:12 PM
From: Travis_Bickle	Read Replies (2) \| Respond to of 306849

"All it would take is one call to the fraud division of the IRS and he's taking a vacation in West Virginia in minimum security." i used to work for treasury and in private practice with irs problem clients until i got sick of it. having a relative on the payroll is so commonplace that there's no chance it would result in a criminal referral. little stuff like that is pretty much expected so long as you don't lie to anyone about it you just have some penalties for the disallowed deduction. it's actually very hard to get criminally prosecuted you have to have screwed up in an unusually big way.

To: GraceZ who wrote (51519)	4/7/2006 4:07:39 AM
From: Amy J	Respond to of 306849

Grace, one of the smartest tactics I've seen used by a restaurant owner, is he required all the waiters/waitresses to report the daily tips to him, of which a portion was given to the busperson and if one person consistently had poor daily tips, he would question the person about their performance. He would then keep an eye on any under-performer to see if they were hiding the tips and under reporting them. He fired one person that he caught hiding a portion of the tip money. Every waiter/waitress that lasted at his restaurant reported their tips in full. A side benefit is, he never got an audit. Regards, Amy J