Here is another scam I hear businesses are using to defraud the Government, which we all know is you and I, the taxpayer.
Due to PPP, No Show jobs are back in style. Like the mafia of old, businesses still operating during the situation, companies are hiring family, friends and others to phantom positions.
Basically the scam works in that you hire the person to a wage around the pay rate of your highest paid employee. This now makes you eligible for 8 weeks of 100% of their salary paid by the Government under PPP. You work a deal with the person for a percentage of the actual paycheck, taking into account the taxes the business has to pay in matching SS Tax and the potential taxes the employee will pay.
The best candidates were not employed at the start of this, or worked for cash. Anyone on UC is not a candidate for this scam as they would lose their UC benefit.
You have to respect the creativity of the perpetrators of this. While there is certainly a risk, the odds are the government will never investigate new jobs being “created”, even if the employees are laid off in 8 weeks. Unless of course, more PPP dollars are offered.
Lesson is no good deed goes unpunished.