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Is it illegal to have employees on payroll who do not work for the company.?

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Is it illegal to have employees on payroll who do not work for the company.?

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  1. Yes. That is fraud. Guilty party faces fines and/or  jail time.

    IRS would have a field day going over the books.  This is one of the methods used to "launder money."  Not only would IRS go after a person or a business doing this, so would the police.  

    Al Capone, the famous Mafia leader, went to prison because of tax fraud. This is one of the fraud practices he used.


  2. YES AND NO, IF THEY ARE CONTACTORS WHO DO WORK FOR THE COMPANY THEN IT IS LEGAL, IE MAKETING OR WEBSITE PEOPLE. IF THE PEOPLE DO ABSOLUTLY NOTHING THEN IT MAY CROSS THE LINE. ALSO IF THEY ARE A "SHARE HOLDER" THEN IT IS LEGAL FOR THEM TO GET A DIFFERENTIAL. WHY WOULD THE COMPANY PAY THE FEC TAX TO MATCH THE EMPLOYEES PORTION IF THEY DO NO WORK THOUGH?

  3. no as many solely owned companies put wife even children on payrolls. Done all the time.  
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