Why would a business lie about how much they pay their employees?

Let's say for example that a business claimed to pay their employee 30 dollars per hour, but they actually pay them 20 dollars per hour. What's the purpose of this, are there tax benefits????

10 Answers

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  • 2 months ago

    The official paperwork to the government would not allow for lying since they not only get copies of your W-2 form, but also the legal paperwork from the company you work for.

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  • Anonymous
    2 months ago

    Locally, a county government contract stipulated the workers get $18-23 per hour for various jobs in renovating government center. After the work was done, it was discovered they actually paid $12-15, about 1/3 less than the contract by the vendor. The county was mad. Some workers got additional compensation, others didn't. They still came out several thousand ahead of the game. You'd think that would exclude them for bidding on more work? Amazing what $1,500 to the county executive's campaign and $500-750 to several county legislators donations can do. Oh wait, it isn't, they were all Republicans... They bid on, and won a contract I bid on a few months ago.

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  • Scott
    Lv 6
    2 months ago

    Who is it they are lying to? Other employees? The government?

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  • 2 months ago

    No & I've never heard of anyone doing this before................

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  • Eva
    Lv 7
    2 months ago

    There are not tax benefits for something that isn't actually paid. They may be trying to recruit a better class of employees, but they won't retain them if they promise one thing and do another.

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  • Anonymous
    2 months ago

    It's possible that the hourly wage is $20/hour but the value of the benefits increases total compensation to $30/hour.     Medical, dental, vision, life insurance, short-term disability insurance, paid time off, continuing education, quarterly bonus, health club membership...who knows?

    "What's the purpose of this"   You didn't tell us who they are lying to and we are not clairvoyant.  My guess is it may be part of a recruiting strategy. 

    Where I live "minimum" wage is $16/hour but employers are allowed to include the value of employer-paid medical insurance when calculating wage.   Meaning they can pay someone less than minimum wage as long as the wage paid PLUS the value of medical insurance totals at least $16/hour.   Clear as mud?    Anyways, this business of expressing a wage that includes benefits is now a thing.   I didn't say it was a good thing.   Ha!

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  • Hypothetically speaking, all the records show that labor was a quantity much higher than the employee was actually paid, why did they do this?

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  • 2 months ago

    No tax benefits. Just an idiot who likes to lie

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  • 2 months ago

    It would depend on who they "claimed" this with.

    As long as they didn't tell the employees that they would earn $30 but not pay them that, it wouldn't matter to anyone.

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  • Anonymous
    2 months ago

    Nobody does this.

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