Our employer has added stepson to payroll just so he can get insurance. Is this legal?

Question

He does come in to p/u check. Our ins. agent got real nervous and the cpa said don't do it. What is the risk to the co.? The stepson is a specialist in spreading his seed and not being a good father and losing jobs. Oh and going to the hospital.

Answer 1

OK, I've never heard of a small group plan getting "popped" because of overuse by one member.  I don't think that's true.

Is it legal?  Well, it's definately unethical.  But if they're paying him payroll, withholding payroll taxes, and paying into social security, then he's an employee - even if he doesn't show up.  

If they aren't paying him, it's insurance fraud, and illegal.  

So it depends on if he's an employee or  not.  But you said, they've added him to the payroll.  So apparently he is an employee.

Answer 2

So  how and why is this any of your business????

Answer 3

It is his company, he has the right to have whomever he wants as an employee and he can decide what they have to do...  For all you know the stepson stays home and files papers, mails letters etc etc.  He could easily claim any of those.  He could simply be hired on even as a consultant.

Also, I do not understand why you are so worried about it....