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Marcia Mitrano
Marcia Mitrano,
Category: Finance
Satisfied Customers: 23
Experience:  Marcia M Mitrano, CPA at Marcia M Mitrano, CPA
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I am a owner of a barber shop.. One of my barbers is trying

Customer Question

I am a owner of a barber shop.. One of my barbers is trying to buy a home and because he receives cash for his services from clients he is having trouble showing the bank his true income.. He is wanting for me to give him a check from the business intern for cash of the same amount for him to deposit and help show a income.. My question is can I get in trouble for this
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: No
Submitted: 6 months ago.
Category: Finance
Expert:  Marcia Mitrano replied 6 months ago.


I would suggest to him, if he wants to show the bank deposits for his tips, he should deposit the cash into his bank. If you write him a check, it may be considered payroll, subjecting you to taxes withholding requirements and 50% of the social security taxes.

It is the employee's responsibility to report the income on his personal income tax return.

Thank you,

Marcia M Mitrano