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Help me do what is right

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philip_s

Junior Member
What is the name of your state?Georgia

The 60 year old manager of my store had a debilitating stroke 6 months ago. He has been unable to move or work since. I have kept him on at his regular salary. I want to continue to do this as long as I can, hopefully until normal retirement.

He was just approved for Social Security disability benefits, but they are a fraction of his regular pay. His accountant says that if I continue to pay him, he will lose these benefits. There may come a time when I cannot afford to keep him on, but I want him to "double dip" as long as possible.

What can I do? How can I structure this so as not to cause any problems? I want to do what is right, and he needs as much money as he can get and from as many sources as he can. I want to avoid the f-word (fraud) but continue to pay him while he draws disability.

I am the sole owner of the C corporation. He has many children, some still minors. I was thinking of drawing both salaries, paying the payroll taxes, and then "giving" him his normal take home, up to $11k, then "giving" it to his wife, then the children, etc. Would this cause problems for anyone involved?

There must be a better way. Thanks in advance for any and all suggestions.
 


seniorjudge

Senior Member
philip_s said:
What is the name of your state?Georgia

The 60 year old manager of my store had a debilitating stroke 6 months ago. He has been unable to move or work since. I have kept him on at his regular salary. I want to continue to do this as long as I can, hopefully until normal retirement.

He was just approved for Social Security disability benefits, but they are a fraction of his regular pay. His accountant says that if I continue to pay him, he will lose these benefits. There may come a time when I cannot afford to keep him on, but I want him to "double dip" as long as possible.

What can I do? How can I structure this so as not to cause any problems? I want to do what is right, and he needs as much money as he can get and from as many sources as he can. I want to avoid the f-word (fraud) but continue to pay him while he draws disability.

I am the sole owner of the C corporation. He has many children, some still minors. I was thinking of drawing both salaries, paying the payroll taxes, and then "giving" him his normal take home, up to $11k, then "giving" it to his wife, then the children, etc. Would this cause problems for anyone involved?

There must be a better way. Thanks in advance for any and all suggestions.

I don't think any of us want to help you defraud the government.

But I certainly sympathize with you.
 

zippysgoddess

Senior Member
I don't think this person is really trying to defraud the government, I think he is simply trying to help this family as much as possible.

If he is getting SSDI, then check out the SSA website, ssa.gov, there is certain income criteria that they list, and if you don't go over that, in cash income in a month, then you can keep your benefits. (generally $830 a month is what they can earn before losing benefits!)

Yes, income to his wife and family would also have to be reported. However, GIFTS are not. So for instance, if you bought them groceries, or made arrangements to pay their gas and/or electric bill each month, that would not have to be reported, it would be considered charitable assistance.

There are ways to legally do this, without defrauding anybody, but still being able to help the family. If you paid their rent/mortgage each month for awhile, that isn't reportable either. My DH was on SSD for several years, and we had housing assistance, I called SSA, and they said any charitable assistance that doesn't actually give you cash doesn't have to be reported, because other assets don't count unless you get regular SSI, and not SSD.
 

tjr5150

Member
I have some sympathy for you..
Not to sound rude but your employe had a stroke, you are not responsible for his monthly pay..
 

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