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- Jun 29, 2015
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Hi Everyone,
I provide consulting services to small business on their accounting policies and procedures, and came across a client with a tough situation that I was hoping you all could help me solve. He runs a small start-up company, and since the beginning of this year he's been paying his 5 employees cash under the table. After telling him of the legal and financial consequences of this practice, he has agreed it's best to go with a more legitimate payroll system going forward. The issue that I can't seem to solve is this: How do we go about fixing the past 6 months of payroll that was paid in cash to the employees? How can we resolve this so that at year end, he can report proper figures for his payroll expenses?
Any information you all can give me will be most helpful. Thanks!
I provide consulting services to small business on their accounting policies and procedures, and came across a client with a tough situation that I was hoping you all could help me solve. He runs a small start-up company, and since the beginning of this year he's been paying his 5 employees cash under the table. After telling him of the legal and financial consequences of this practice, he has agreed it's best to go with a more legitimate payroll system going forward. The issue that I can't seem to solve is this: How do we go about fixing the past 6 months of payroll that was paid in cash to the employees? How can we resolve this so that at year end, he can report proper figures for his payroll expenses?
Any information you all can give me will be most helpful. Thanks!