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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1644
Experience:  Certified Public Accountant
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I work for a sole proprietor who is family and does not want

Customer Question

I work for a sole proprietor who is family and does not want this disclosed but the problem is I went to buy a car. Since this year sometime I was paid with cash or personal check. I now am being paid by payroll check. I usually get a earnings statement, but when I went to get the car, the owner did a computer generated check, thinking they would not want an earnings statement. They are trying to tell me it is fraud. They can't verify business. No FEIN, I guess. But they have never called the business either. What should I do?
JA: Because laws vary from state to state, can you tell me where the business is located?
Customer: Ohio
JA: Has anything been filed or reported?
Customer: What filed or reported? If you mean income, the sole proprietor was under the impression she had until the end of the year to report or filed.
JA: Anything else you want the lawyer to know before I connect you?
Customer: I don't think so.
Submitted: 5 months ago.
Category: Tax
Expert:  Mark Taylor replied 5 months ago.

Hi, my name is Mark. I will be happy to help you with your questions.

Expert:  Mark Taylor replied 5 months ago.

Did you report your income from your sole proprietorship on your tax return?

Customer: replied 5 months ago.
What should I do next.
Expert:  Mark Taylor replied 5 months ago.

Sorry, I misread the question. You work for a sole proprietor. Is the sole proprietor withholding payroll taxes from your checks?

Customer: replied 5 months ago.
It's not my sole proprietorship. I am an employee.
Customer: replied 5 months ago.
Just started
Expert:  Mark Taylor replied 5 months ago.

I understand. You are the employee. I apologize I misread that part.

Customer: replied 5 months ago.
I am the only employee. I usually get an earnings statement, but with the purchase of the car, they created a check stub for me.
Expert:  Mark Taylor replied 5 months ago.

So your paystub shows that you just started working there.

Customer: replied 5 months ago.
No. I've worked there for years, ,but was paid by other methods, whether cash or a personal check. Just started receiving payroll sometime this year with deductions.
Expert:  Mark Taylor replied 5 months ago.

Did the dealership ask for anything specific that they needed?

Customer: replied 5 months ago.
Pay stub, bank statement, utility bill
Customer: replied 5 months ago.
They are trying to say it is fraud because it was computer generated.
Customer: replied 5 months ago.
I am so stressed. This isn't fraud. I gave them what they asked for.
Expert:  Mark Taylor replied 5 months ago.

It is not fraud. Was the paystub prepared from a software?

Customer: replied 5 months ago.
I really don't know.
Customer: replied 5 months ago.
It cam from somewhere online
Expert:  Mark Taylor replied 5 months ago.

What information was on the paystub?

Customer: replied 5 months ago.
My name, address, wages, deductions. Just like a normal pay stub.
Customer: replied 5 months ago.
Name of Business
Expert:  Mark Taylor replied 5 months ago.

Why do they think it is fraud?

Customer: replied 5 months ago.
Because it was a computer generated pay stub.
Customer: replied 5 months ago.
They didn't use ADP or Quik Books, I guess.
Customer: replied 5 months ago.
It was something they found online.
Expert:  Mark Taylor replied 5 months ago.

Oh I see. Did they recommend how you could resolve this problem? There is a free accounting software waveapp.com. On this software there is a payroll app that costs $15 plus $4 per employee (monthly).

Customer: replied 5 months ago.
Should I have her redo the pay stub?
Expert:  Mark Taylor replied 5 months ago.

That may solve the problem. I would explain to the dealership that you are working for a family business and that you receive paychecks with payroll taxes withheld but a formal paystub was not created.

Customer: replied 5 months ago.
No they didn't.
Expert:  Mark Taylor replied 5 months ago.

I would think that they would work with you to try to get the sale. Did you tell them what you told me regarding the situation?

Customer: replied 5 months ago.
Customer: replied 5 months ago.
The already gave us the car, told us we had financing.
Expert:  Mark Taylor replied 5 months ago.

And now the lender is causing problems.

Expert:  Mark Taylor replied 5 months ago.

Does your bank statements show that your checks are being deposited in your account?

Customer: replied 5 months ago.
The sole proprietor is not willing to give out a whole lot of information on themselves. They have no problem answering questions about me. I don't always deposit into my account, sometimes I cash them.
Customer: replied 5 months ago.
Prior to getting checks, they sometimes would use the credit card machine and have it deposited into my account. It's just a small business in a small town.
Customer: replied 5 months ago.
I have no clue what is legal and what isn't. I don't want to find myself in trouble.
Expert:  Mark Taylor replied 5 months ago.

The sole proprietor should not need to provide information about themselves. You should see if they will accept a notarized letter with your start date, your weekly gross payroll amount, and your net wages year to date.

Customer: replied 5 months ago.
Can the financial institution talk to the manager, or do they need to talk to the owner. A notarized letter sounds good.
Expert:  Mark Taylor replied 5 months ago.

I would think that they would be able to talk to either a manager or owner.

Expert:  Mark Taylor replied 5 months ago.

The notarized letter should be signed by the owner.

Customer: replied 5 months ago.
Oh, ok. ONe more questions, my husband and I have been offered a chance to buy this small establishment. How will this effect this situation. Should we wait until this is over.
Expert:  Mark Taylor replied 5 months ago.

I would wait to the loan is approved before completing the purchase. If you purchased the building you would become self-employed and the lender will want to see that the business has historically been able to make money.

Customer: replied 5 months ago.
What if my husband was owner, and I was an employee?
Customer: replied 5 months ago.
We are purchasing the business, not the building.
Customer: replied 5 months ago.
Technically, we are pretty much going to just take it over.
Expert:  Mark Taylor replied 5 months ago.

Oh I see, what state do you live in?

Customer: replied 5 months ago.
ohio
Expert:  Mark Taylor replied 5 months ago.

Ok, if your husband owned the business then he could still pay you as an employee. Usually in a situation like that (where a spouse owns a sole proprietorship) the other spouse is not paid as an employee.

Customer: replied 5 months ago.
Is it illegal todo so.
Customer: replied 5 months ago.
Pay me as an employee, that is.
Expert:  Mark Taylor replied 5 months ago.

No, it is not illegal. You husband can pay you as an employee.

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