My boss makes me pay her taxes for her

[Anh map 2,098]

I don't have a spouse. Nor do I have friends here. How do I go about collecting evidence of her cheating on the taxes when she's always at the salon with me? Am I supposed to video record the activities at the salon?

The cash she borrows I don't have a record of but some of the credit card transactions can be tracked down to her, like using it to pay fines to the department of regulations and licensing...or at least I think so because I don't own the salon why would I pay a fine for it?

Thank you for your advice.

Without any evidence or proof there is little for anyone to follow up on. Just an angry (former) employee. You said that you loaned her money and your credit card. So you would want to document that. It's not going to happen without effort on your part. If you want to just post here and vent, go ahead. If you want to make something happen then you will have to do some work and be able to give the department of revenue something to go on.

If this is a smallish salon with mostly immigrant staff then it would likely be a "target" for the state. Nail salons around the country have been targets for quite a while now. Same type of thing, mostly cash business, not paying payroll taxes, etc. IRS won't look into it without a good bit of proof. The state is where to begin.

You are involved in the bad things so it's better to get out in front instead of getting dragged into it when the ####### hits the fan.

[Scot19000 3]

If you sleep better at night by reporting someone for something you can't possibly prove then I'm not sure I would consider yourself the better person in the situation. Cash business in the U.S. are known for this, on the scale of things going wrong in our country this is so low down on the list. I personally think you are wasting your time even considering reporting her, you aren't happy there so you quit. It is that simple. You obviously have hate for your employer and odds are it will be seen in whoever you report to. The way she treats you or her customers is not illegal, if she can stay successful being mean to people then that is her choice.

No, you sound like an angry, judgmental person with quite some hatred in you.

The question I'm seeking answers to is what I can do about the money she borrows me and makes me pay taxes on, not how to report her to the I.R.S. And I think even how to report her to the I.R.S was my question it would be a valid one. Unless you're doing the same thing cheating on tax and exploiting immigrants you won't condone what she's doing.

Edited December 3, 2015 by Scot19000

[Scot19000 3]

Without any evidence or proof there is little for anyone to follow up on. Just an angry (former) employee. You said that you loaned her money and your credit card. So you would want to document that. It's not going to happen without effort on your part. If you want to just post here and vent, go ahead. If you want to make something happen then you will have to do some work and be able to give the department of revenue something to go on.

If this is a smallish salon with mostly immigrant staff then it would likely be a "target" for the state. Nail salons around the country have been targets for quite a while now. Same type of thing, mostly cash business, not paying payroll taxes, etc. IRS won't look into it without a good bit of proof. The state is where to begin.

You are involved in the bad things so it's better to get out in front instead of getting dragged into it when the ####### hits the fan.

Obviously I don't just want to post here and vent. Why would I want to vent on an open online forum where I know there are people who have no problem doing the exact same things as my boss?

I'm looking for advice on what to do about the false "income" she forces on me because obviously I don't want to and can't pay tax on the money I have already paid tax on.

[Boiler 47,040]

Can not see the logic of paying you false income with all the costs that incurs in WC witholdings etc etc.

[Foreign Fantasy 52]

If you sleep better at night by reporting someone for something you can't possibly prove then I'm not sure I would consider yourself the better person in the situation. Cash business in the U.S. are known for this, on the scale of things going wrong in our country this is so low down on the list. I personally think you are wasting your time even considering reporting her, you aren't happy there so you quit. It is that simple. You obviously have hate for your employer and odds are it will be seen in whoever you report to. The way she treats you or her customers is not illegal, if she can stay successful being mean to people then that is her choice.

The being mean part is not illegal, but accepting cash and checks and not reporting them as income is. I liked whoever commented with the audit. A group of auditors will uncover these kinds of things quiet quickly.

[jgdaily 4]

She's taking advantage of you while benefiting from it. If you got the job there, you can get another job somewhere else. Believe in yourself. You shouldn't be taken advantage of.

[Scot19000 3]

Can not see the logic of paying you false income with all the costs that incurs in WC witholdings etc etc.

It's quite common in this industry that employers don't withhold any taxes from employee's paychecks. No benefits either.

Many clients pay cash or checks but some pay with cards. This part of income can't go unreported. So if she writes it all off to me, in the form of payrolls, then her income is zero. The fatter my paychecks seem the less her profit looks, less tax, and more assistance from the government.

[Ortolan 381]

OK...first thing you need to do is look for another job.

If it was me, I'd go down to the local office of the IRS and sit down with a representative and explain the situation, being honest and asking for help. The rep can at least help you figure out what to do with your taxes, and perhaps put a notation for investigators to examine the salon more closely. It's not exactly turning her in, but it's you trying to make your own personal tax situation right. You don't want to get in tax trouble for something she's lying about.

[DJ6372 111]

Come on people the OP has asked for our help, not to judge his/her situation

So what if the OP is naive to the way USA works, so am I!!

Help or zip it

[Pitaya 2,577]

~One non-constructive, inflammatory comment removed~

~Post constructively, or do NOT post~

Pitaya

VJ Moderation

[IcezMan_IcezLady 582]

You need to either report or walk away from that job.

You don't want to be a "willful accomplice" when you are not benefiting in anyway from that scam.

If she deducts tax from your pay, keep records of that and when you file taxes, use that amount as the amount withheld from your wages.

If she is a real scammer, she will be happy with you if this comes out..so it is best to remove yourself from the situation.

If you report her to IRS, nothing might be done now until after she has filed her taxes and lied about her taxes there. You have to consider the possibility of revenge from her if she finds out you snitched on her.Unfortunately, the cops can't arrest her until she has done harm to you..

Make your choice.

[Jawaree 719]

I have another problem!

I work for someone from the same country as I am. She runs a successful hair salon and really knows how to defraud the system. She knows I'm new and don't know anyone in this country so she screws me up really bad.

She's supposed to pay me every week but she doesn't. So after the second or third week I summon up all my courage and wait until I feel that she's done screaming at people on the phone or being nasty to the ones in the room and ask. She gets really mean and guilt trips me for wanting the money I have worked for. But usually she will pay the next day or the next few days, she always backdates the checks so it looks like she pays me on time.

When she checks my clients out she always asks them for cash. The clients are oftentimes reluctant to. Sometimes they say they want to pay with a card so they can tip me because they don't have enough cash. She tells them, "That's ok. Just pay the fee. You don't have to tip." She also asks regulars to write her checks, putting her name on them, not the name of the business.

The reason why she asks for cash or checks written to her is the income will go unreported so she doesn't have to pay taxes and can continue collecting welfare.

She often borrows cash or my credit card from me. When she pays back the money she includes it in the paychecks so it looks like that's the wage I earn while in fact it is not.

When it comes the time to file tax I am sure she will report all the amount she has borrowed from me and then paid me back as the money she paid me for working for her to get more deduction (she even pays people with no or low income to claim some of her income for her). That hurts me in many ways, not just the tax I will have to pay on the money I loaned her but also higher health insurance premium, and the false higher income disqualifies me from student financial aid.

I have only read your post so far in this thread. Okay ppl treats you the way you allow them to, are U in the US legally why would you put up with

all that and remain there, this person is meting out treatments to you that says "'U R nobody", do you have a spouse or family and why are you

loaning her money....you should get away from there 4 she gets investigated & you caught up....cur your losses & leave..This is the kind of things

umdocumented go thru....you are being mentally & financially abused, but only you can end it, why stay in an oppressive situation because U are

both from what country?

.

Thank you.

Edited December 3, 2015 by Jawaree

[Scot19000 3]

I appreciate that you took your time to comment. I really do.

But did you even read my posts? I don't recall stating that I'm here asking to be judged. As far as I know this is not a courtroom.

Would I worry about taxes if I were here illegally? And didn't I say the false higher income disqualifies me from student financial aid? As far as I know undocumented aliens don't get financial aid to go to college.

How would me telling you what country I come from change anything?

[Scot19000 3]

You need to either report or walk away from that job.

You don't want to be a "willful accomplice" when you are not benefiting in anyway from that scam.

If she deducts tax from your pay, keep records of that and when you file taxes, use that amount as the amount withheld from your wages.

If she is a real scammer, she will be happy with you if this comes out..so it is best to remove yourself from the situation.

If you report her to IRS, nothing might be done now until after she has filed her taxes and lied about her taxes there. You have to consider the possibility of revenge from her if she finds out you snitched on her.Unfortunately, the cops can't arrest her until she has done harm to you..

Make your choice.

Thank you for your opinion but I clearly stated she doesn't withhold taxes from my paychecks. And I also said I was going to quit.

My question is what should I do about the money she borrowed from me and then paid me back in the form of a paycheck. My understanding is when somebody pays you back the money they borrowed from you, it's not called income.

[Scot19000 3]

She's taking advantage of you while benefiting from it. If you got the job there, you can get another job somewhere else. Believe in yourself. You shouldn't be taken advantage of.

Thank you.

The being mean part is not illegal, but accepting cash and checks and not reporting them as income is. I liked whoever commented with the audit. A group of auditors will uncover these kinds of things quiet quickly.

Thank you.

Come on people the OP has asked for our help, not to judge his/her situation

So what if the OP is naive to the way USA works, so am I!!

Help or zip it

Thank you.

OK...first thing you need to do is look for another job.

If it was me, I'd go down to the local office of the IRS and sit down with a representative and explain the situation, being honest and asking for help. The rep can at least help you figure out what to do with your taxes, and perhaps put a notation for investigators to examine the salon more closely. It's not exactly turning her in, but it's you trying to make your own personal tax situation right. You don't want to get in tax trouble for something she's lying about.

Thank you.