How I Became An Expert on Guides
Even after the IRS being in place, many people have been working off the books to avoid paying taxes. However, there is a significant risk of paystub fraud especially for people who do not make a lot of money.
Among the common reasons why people make fake pay stubs is when attempting to get a loan. This is fueled by the fact that lenders will want to know whether a person can afford to pay for the loan by getting to know how much they earn per month. Therefore, a person can create a fake paystub to ensure that they earn more than they do or to have an entirely fake document when they are unemployed. However, there is a huge risk of doing this because you could find yourself facing jail time and fines that could go up to $1 million.
Another reason why people can make fake pay stubs is so that they can get benefits that they are not entitled to so that the government or an insurance company can pay the benefits to them. However, one should recognize that the risk associated with scamming is not worth it because of the enormous fines that will need to be paid if they are caught. The companies that sell fake pay stubs online are usually looking for quick money, and they take advantage of desperate people who need money fast. If such a company is caught, you will also be tracked down as a person who participated in the scam.
As an employer, you should ensure that you do not work with an accountant who suggests that you use fake pay stubs. A good accountant should be looking for ways to help you operate legitimately in your company. If you have an accountant managing your finances, they should suggest that your employer hires you as a W-2 employee or creates 1099 if you’re currently being paid in cash. The only situation where you may use fake pay stubs is when estimating your taxes and calculating your earnings, but you should never use them for legal purposes.
Another group of people that can make fake pay stubs is employers so that they avoid paying taxes as they should. They could also do this if they are running a front for another kind of business that might be illegal. It is necessary that you get an employment lawyer to assist you when you suspect that such an employer is doing that.
You will find yourself facing legal matters as a small business if you’re using fake pay stubs and you will have to incur costs on lawyers that you do not need to. It is also possible that employees could be falsely accounting for labor costs that will cause a loss for you. Your employees can also lose trust in you if they discover that their pay stubs are fake, and this is definitely bad for business.
Why not learn more about Resources?