I have an employee who has been working for me for about 3 years now. Recently i started watching camera and it seems like he has stole about 50K with in past 3 years from me. I just fired him today. Can I press charges on him? before firiing I put him on the book for about a week. What should I do?
2007-12-22 13:44:12 · 9 answers · asked by K P 1 in Politics & Government ➔ Law & Ethics
Can i press charges on him? I just put in on the book.
Also, I was paying him cash inside the building once every 3 months which i have video for, if i do take him to the court can he say I told him to take money out of the register to pay him self?
2007-12-22 14:04:57 · update #1
so what is the deal with this 1099? I am sorry i am not to uptodate with this stuff?
Does that form requires him and mine both signature?
2007-12-22 14:17:46 · update #2
This is an example of what we call "unclean hands".
If you sue someone who has wronged you, yet your behavior is also illegal and unethical, the defendant can point out your unclean hands to the court, which may decide that you deserved whatever you got in dealing with this guy.
Three years of paying him off the books adds up to a substantial employment tax bill for you, with penalties and interest. You can bet that will come up if you sue your former employee.
Sue him at your own risk.
2007-12-22 14:14:24 · answer #1 · answered by raichasays 7 · 1⤊ 0⤋
This is one of those cases where you stand to lose a lot more than you'll gain. If you haven't been taking out Social Security and taxes on him for three years, having him on the books for a week isn't going to make any difference. You broke the law just as much as he did, and that's what the court will tell you. By the time that the IRS gets done with you, you could be looking at major fines and/or jail time.
And since he wasn't officially working for you, you have no grounds to press charges against him for something that happened before he was "on the books." Just the act of taking him to court or trying to press charges is tacitly admitting to your own wrong-doing.
About the only option you have is to chalk that 50K up to experience.
2007-12-22 13:55:37 · answer #2 · answered by Wolfeblayde 7 · 2⤊ 1⤋
Have his *** arrested. You paying him under the table is between you and the IRS. No one else will be interested. You have no need to mention paying him off the books. You can also claim he was working as an independent contractor. Don't let him get by with this.
Make sure you 1099 him for all the cash you paid him in 07 and make sure you send the IRS a copy.
2007-12-22 14:13:06 · answer #3 · answered by lcmcpa 7 · 0⤊ 2⤋
I would go see your tax guy and 1099 him for the time of the year he was not on the books. As far as you are concerned he was a contractor you hired and had to fire as a result of him stealing from you.File the charges now unless he has the money to give back to you.
2007-12-22 13:57:56 · answer #4 · answered by ariesdisposal 2 · 0⤊ 2⤋
Sounds like you two are both stealing. You from the social security, FICA, and state and Federal tax board. Him from you. If you file, these agencies are going to take a hard look at your business. I don't think you could stand the scrutiny.
2007-12-22 21:20:26 · answer #5 · answered by Anonymous · 1⤊ 0⤋
You can still press charges on him. Stealing is stealing, it doesn't matter if you were paying him under the table or not.
2007-12-22 15:33:55 · answer #6 · answered by T 4 · 1⤊ 0⤋
Sure you can charge him, just expect the IRS to charge you.
2007-12-22 13:59:54 · answer #7 · answered by ssmesq 5 · 3⤊ 1⤋
you can sue anybody, however, if you dont want the IRS giving you an audit then you are better off cutting your losses
2007-12-22 13:56:16 · answer #8 · answered by jason w 1 · 2⤊ 1⤋
THE I. R. S. WOULD LOVE YOU. CUT YOU LOSSES NOW OR YOU'LL BE PAYING MORE THAN 50 K IN FINES +A CRIMINAL RECORD FOR TAX EVASION
+ ? JAIL TIME
2007-12-22 13:57:51 · answer #9 · answered by roni 2 · 3⤊ 1⤋