Discuss PGroot's answer to: Gross Wage earnings mis-stated on income statement

Why would my gross wage earnings be falsely inflated on my earnings statement. Is there a benefit to the company to falsely state an employee's wages?

Wages paid are an expense that reduces profits and reduces income taxes.  But if the company pays you a smaller amount than your earnings statement, the IRS will think you owe on what the company says they paid you.  So it will cost you money.

As Bonestructure said, it could be an embezzlement scheme where someone in accounting inflates the expense and pockets the difference.

You have a few choices on where to go.  You can ask accounting to explain what's going on.  Maybe they are now taking out health care but they raised your gross pay so your take home pay didn't change.  But if you think there might be embezzlement, you may want to speak to the company president.  Or you may want to talk to the Department of Labor.

 

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