Understanding the Use and the Dangers of Using Fake Pay Stubs
Millions of people have been avoiding the payment of taxes by working off the books since the founding of the IRS. However, one may face massive penalties for fake pay stubs particularly for those who do not make so much money.
One of the most significant causes of people use fake pay stubs is when they need to obtain a loan. A large number of lenders will be interested in knowing how much a person makes so that they can be sure that they are giving out a loan to someone who can afford to pay it back. Someone can create a fake paystub when they are unemployed to get the loan that they need. 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. It is, however, necessary for a person to realize that if they are caught, the legal issues make the whole deal something not worthwhile. A company that sells fake pay stubs online is usually looking to make an income out of disparate people who need money fast. If the company that makes such pay stubs is found, you could also be tracked down as someone who was involved in the fraud.
It is necessary to watch out for accountants who want to work with fake pay stubs. You should have an accountant who is looking for ways to help you be as legitimate as possible in your company. When you have an accountant who manages the finances, and they realize that you’re paid in cash, they should be part of recommending that your firm hires you as a W-2 employee or that it creates 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.
Employers could also create fake paystub so that they can 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. It is necessary that you get an employment lawyer to assist you when you suspect that such an employer is doing that.
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. It is also possible that employees could be falsely accounting for labor costs that will cause a loss for you. 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.