I have been asked to become a signer on the company bank account of small factory. What's my legal liability?

Question

Up till now only the senior partner can sign checks. I am only an employee and worry that I may be better off not accepting the problems and exposure to suspicion that always comes with both writing and signing checks.

Answer 1

Well, generally there isn't a problem with being allowed to sign checks. Just as a warning, though, if you suspect something is illegal, you absolutely cannot sign the check. Also, as in the case with IRS liabilities, the IRS can find that you are liable for not paying taxes, even though you were instructed by your employer to not pay. The IRS position is that you should quit your job rather than violate the law. Unfortunately, the IRS isn't the only agency that sees things this way.

I hate to be so pessimistic on this, but you asked! As I said, though, if you're a long term employee of this company and you reasonably trust the management, it shouldn't be a problem.

Answer 2

You liability is zero unless you embezzle funds. Double check with your supervisor. The knowledgeable accounting folks suggest having an employee who is almost always there sign checks. It's what leads up to issuing the check that is important in eliminating fraud.

Answer 3

I wouldn't do it !!