“Can you sign over a payroll check?” is a question I hear from time to time. My response to those who are confused about the answer to this common payroll question is simple. You cannot sign over a payroll check, unless you are in complete and total ignorance of the law. That is of course unless you work for the government and believe you can circumvent the system without getting into serious legal trouble.
The reason most people are confused is usually because they believe they can simply hand over a check to their payroll department and get their hands on their own checkbook. In all actuality, the only way any of those ever get their hands on their own checkbook is if they personally sign the check and thereby waive their rights to a check of their own. Therefore, if an employee signs over their payroll check, it is legally meaningless. If the company is going to try to use this method, it is almost always an infraction of some kind, even if it seems like the payroll check was simply written out as directed.
If you are going to be dishonest with your payroll check, there is a good chance that the Internal Revenue Service will find out and haul you before they have a chance to jail you or take away your property. Not only is it a legal violation to attempt to deceive the federal tax agency, but it is also a felony with a maximum prison sentence of 15 years. The penalties related to a felony are different from the fines associated with a misdemeanor. So make sure you get everything in writing and understand what you may be facing. Then request a copy of any criminal background records that could be dredged up by the IRS.
If you are wondering “can you sign over a payroll check? “, then you might want to have one of your kidneys removed. When someone is convicted of a felony involving money laundering, wire fraud or any other kind of criminal offense involving cash, their chances of being involved in another crime increase dramatically. Since you could be facing jail time and hefty fines for attempting to defraud the government, signing over your payroll check could land you in the same situation. It is better to be safe than sorry, so why not try to have the best defense possible.
You will need to give the tax agency three weeks’ notice before you plan on filing your federal tax return. This means the very day that you begin to work again. You should also keep a record of all of your deductions and credits on your federal tax return and keep these handy. Any other people that will need access to your tax return should also have a copy sent to them as well.
If you need to ask “can you sign over a payroll check? “, you could find yourself in a bit of hot water with the IRS. They will be able to use your bank statement to find out the amount of money that you took out of your own paycheck and used for personal expenses, such as a vacation to Disney Land. Although it might not seem like much of a problem, this could be a serious tax issue if they catch you, and it could have severe financial consequences for you, your family and your business.