Can my employerreport paying me a higher income than I actually make?

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Can my employerreport paying me a higher income than I actually make?

My employer is using my per diem to determine my taxes to be withheld t. He then deducts it from my check making me pay less in taxes but not actually paying the per diem. However, it still increases my income which screws up the amount of child support that I owe. It seems to me that there is fraud going on here.

Asked on May 17, 2011 under Employment Labor Law, Missouri

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If the per diem is being reported as your income and taxes are being withheld based on it, then you have to be paid that money. Income is only income if the recipient receives it (less any withholding for FICA, health care, etc. as applicable.) The employer cannot report it, take money out of your wage, but then not pay it. You should consult with an employment law attorney about this; you may have a cause of action against your employer. You should also consult with a tax preparer (such as a CPA); you may need some adjustment to made to you taxes, since you should only pay income taxes on income actually paid to you--not on income reported but never actually paid. Good luck.


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