Have a Tax Question? Ask a Tax Expert
Hi, my name is Mark. I will be happy to help you with your questions.
Did you report your income from your sole proprietorship on your tax return?
Sorry, I misread the question. You work for a sole proprietor. Is the sole proprietor withholding payroll taxes from your checks?
I understand. You are the employee. I apologize I misread that part.
So your paystub shows that you just started working there.
Did the dealership ask for anything specific that they needed?
It is not fraud. Was the paystub prepared from a software?
What information was on the paystub?
Why do they think it is fraud?
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).
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.
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?
And now the lender is causing problems.
Does your bank statements show that your checks are being deposited in your account?
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.
I would think that they would be able to talk to either a manager or owner.
The notarized letter should be signed by the owner.
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.
Oh I see, what state do you live in?
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.
No, it is not illegal. You husband can pay you as an employee.