Embezzlement or tax fraud?

Question

I've been working for a grocery store for a number of years, and I've noticed that my employer has the night managers and morning managers account for money that physically isn't there. It starts out as a small amount of miscellaneous money that gets included with the end of night/ beginning of the day count. Or he'll write checks to the store that gets included with the daily count. After a while the check never gets cashed, and the amount is added onto the miscellaneous money. My gut tells me that what he's doing is wrong, however it's my boss. Wouldn't he know if he could get into trouble with the IRS? I need help, because I want to do the right thing. I want him to get into trouble if he's taking money he shouldn't, however I don't want to falsely accuse him of any wrong doing.

Answer 1

you may not be aware of the procedure of your employer and the night and day managers

generally a cash register has a specific amount of money more or less called change', that remains constant, ie. if it is $200, each nite's(or day's) take is counted, removing the $200--change money

hopefully the remaining cash in the drawer equals what the register tape says is the 'take' for that part of the day

then there is what is called 'petty cash' and should not be part of the drawer but in a separate box close to the cash register, this total should always be the same amount as original, ie. $200, which includes the cash that is there and the receipts for things that have been paid for out of that money



some states sales tax agencies audit on occasion and they don't always follow the same guidelines, ie cash register tapes, some actually use the amount of purchases the store makes for their inventory to determine how much their sales are to see if they are reporting what they should be

Answer 2

In my country, and I believe in America too, there are laws in place that state that you cannot be disciplined if you tell on your boss! Although you can get suspected if any wrong doing goes on too long and you don't say anything because then they'll think you're an accomplice! so, if you have evidence that your boss is stealing from the company then you should turn it in!



Start by speaking to your Area Manager informally and in private, they might have a simple explanation for what is happening and there might not be anything wrong at all. That wouldn't be accusing anyone, you could dress it up as you want to learn more about accounting procedures, etc ...

Answer 3

I'm not sure but it could be your employer is pulling cash out of the company. You take the cash, put in a check to balance and then later take the check back but the count is correct. If the count is correct, then he is paying taxes on the right income but as far as the company is concerned, he has company cash in his pocket. If he is the owner, he can take a draw out of the company but it needs to be declared as that. I used to work for a CPA and one of my jobs was to figure out how the people got the cash out of the company before it went under.

Answer 4

Sounds like for whatever reason they are inflating the revenue if they are adding in money that isn't there. That makes no sense, and would result in him paying MORE taxes. Chances are, he's taking cash for himself...which he can because HE OWNS THE BUSINESS. You can't really embezzle from yourself.





Don't worry about what the business owner does, not your concern.

Answer 5

If I understand you correctly, it would not be either. The story you tell would have the store paying more taxes than they really owed not less.