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 most common reasons why people fake pay stubs are when they need 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.
Some people also make fake pay stubs so that they can get some benefits that they are not entitled to acquire, from different institutions such as the government or an insurance company. However, one needs to realize that the legal risk associated with such as come is too significant to take. Companies that sell fake stubs online usually look for ways to take advantage of those people who are desperate and want to get money quickly. If the company that makes such pay stubs is found, you could also be tracked down as someone who was involved in the fraud. Be sure to read more here!
As an employer, you should ensure that you do not work with an accountant who suggests that you use fake pay stubs. The accountant who you hire should be one who enables you to operate legitimately in your company. If you have an accountant who is managing your finances as someone who is employed by a firm that pays in cash, they should recommend that you get your employer hiring you as a W-2 employee or creating 1099 forms. Ensure that you never use fake pay stubs for legal purposes, but you can use them in calculating your earnings or making estimates of your taxes. Check this product to know more!
Another group of people that can make fake pay stubs is employers so that they avoid paying taxes as they should. It is also possible for an employer to do this when they are running a front business for another illegal one. You should consider getting an employment lawyer to help you when you suspect anything like that with your employer.
If you’re running a small business, fake paystubs can get you in a place where you need to hire lawyers unnecessarily when you get on the wrong side of the law. You could also find that you’re losing money on falsely accounted labor costs. Employees can also feel that you do not appreciate them and they lose their trust in you if they discover that their pay stubs are fake. To gain more knowledge on the importance of paystub, visit https://www.encyclopedia.com/finance/encyclopedias-almanacs-transcripts-and-maps/payroll.
