Renting from employer HELP!! (apartment, lease, house, small business)
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So, a friend of mine is going to be renting a house from her employer that she has worked for about a year and a half. But she have known them for over 9 years. They have a small business. They would like to subtract the rent from her paycheck via paystub. How should they list/deduct it on the paystub? He does not want it to say that its "for rent" on the paystub.
She needs to have a lease and pay the rent. do not deduct rent from your paycheck. Things could go bad and you...she...could be left out in the cold.
Get a lease and pay the rent...the employer may be trying to hide the income, or make the rent house part of the business. If it is deducted from the paycheck it could be seen by IRS as additional income by the employee. there are all kinds of scenerios that would only benefit the employer, and be bad for the employee.
A lease and pay the rent by personal check avoids any problems.
She needs to have a lease and pay the rent. do not deduct rent from your paycheck. Things could go bad and you...she...could be left out in the cold.
Get a lease and pay the rent...the employer may be trying to hide the income, or make the rent house part of the business. If it is deducted from the paycheck it could be seen by IRS as additional income by the employee. there are all kinds of scenerios that would only benefit the employer, and be bad for the employee.
A lease and pay the rent by personal check avoids any problems.
Couldn't have said it better. The two should be kept seperate. Get your paycheck, and then pay the rent, with a nice strong lease. The guy is trying to pull a fast one.
What they would "like" to do and what "should" happen are two different things.. the rent should be paid as in normal fashion.. no deduction should occur through their pay check. Now on the other hand.. if they authorize it to happen.. then I am sure they can do it.. but I wouldnt do it if I were them!
Like everyone else has said, there's something really deceptive in the way they propose her paying the rent. I might have thought it was kinda nice for them to offer the convenience of taking it right off her check (kind of) - but when you said they don't want it to say that it's for rent? No way.
To be perfectly honest....if that were me and I found out my employer was capable of devious practices like that - I'd be a bit worried. I don't like being even remotely associated with crap like that and I'd really wonder what other stuff they might try to pull in their business and how it could affect me in the long run.
ETA: And overall, it's probably not a good idea to mix business with personal stuff. One could wind up affecting the other and may end up being more trouble than it's worth.
You can give specific authorization to allow a deduction from payroll for your rent, and a stipulation will be noted on your pay stub. Just as you can deduct for Savings Bonds. This is usually for the convience of the employer only, and he has the right to cancel this authorization anytime. However, stopping such action by you needs a written notice to cease, and may take awhile. Check the Federal Fair Labor Standards Act (FLSA). Aside from the good advise of not renting from an employer, you're getting into a legal nightmare if things go south. I'd recommend keeping the rent and paycheck separate.
I mean imagine if something goes wrong in the apartment. The only recourse you have is not paying them the rent and paying it to escrow. But if they're taking it out automatically, you've just lost the only bargaining tool at your disposal.
And seriously... what's up with them not wanting it to say for rent? That's weird....
a person is working for a farmer-they are renting a house from the farmer-the rent is almost half the pay. is there a legal formula to use in this case to determine a rent?
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