I think my employer is cheating on taxes. What should I do?
Employees are paid under the table. Business has been losing money every month, yet they remain open. Husband/wife team have several other businesses. This business is in her name as 'sole proprietor', but he runs it. Wife works at her family's diner 'under the table' as well, so she has no reported income other than this failing business.
I agree with Laurie and Kim. However, I also would caution you not to jump to conclusions too fast. Businesses can lose money for multiple years and yet be fine if the owners can capitalize it from other sources; maybe they want the tax benefit of a loss in one business to offset the profits in another one. This can be a successful strategy to get a biz up and running, hoping that eventually it does make a profit.
The paying under the table is a huge red flag, though. That alone would be enough to make me move on. That can lead to audits, labor complaints/investigations, and enormous fines. You don't say what your level of responsibility is - bookkeeper? Accountant? In some cases, the accountant can be held liable for the taxes, penalties and fines if you were running payroll and or signing tax reports. Get out now! And let them know why you are leaving.
Look for another job. Chances are if they are cheating the government, eventually they'll cheat you out of money, too. You may be tempted to be a whistle blower, but that probably won't work out the best for you. If I were you, I'd move on and not look back.
I agree with Laurie. And, I speak from experience. I worked for someone many years ago who cheated the IRS, the state government and the sales tax board. The best thing for you to do is move on. You will gain nothing but stress if you try to entangle yourself in this mess. Let karma take its course - and it will!
the obvious recommendation is to quit the job, as the fraudulent management is crystal clear from what you say. However you I guess you are not in a position to execute it until you find a vacancy.
Please do note your contributory negligence is already a matter of fact, because, if I did understand correctly, you are responsible of accounting.
More importantly, though, be aware that the violations are not only limited to taxes, but even include employees payroll dues, Company structure and many more.
All that said: i) find immediately another job, and ii) consult a lawyer about your responsibilities vs all the involved Authorities .
Hope my words of advice might be of help.