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Question by blndelady4u: Can an employer deduct cash per paycheck for rent but call it charity?
I have a friend that rents a room from his employer. He deducts $ 300 per paycheck for rent. On the paystub, nonetheless, it says “Charity Donation”. My buddy says that the boss told him that it can be deducted as rent. I’m more than skeptical (I called it stealing), but not certain how to assist him. I reside in Southern California.
Best answer:
Answer by Steve
What the employer is doing does not sound legal.
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Shauna Mar 4 2012 - 9:48 pm
He probably gets away without paying taxes on your friends rent…if that is the case, it is totally illegal. You could always have him contact OSHA about his rights.
Kutekymmee Mar 4 2012 - 10:25 pm
sounds shady – like the employer is trying to avoid paying taxes on it.
spot Mar 4 2012 - 10:46 pm
It is not stealing, but it is not hurting your friend. At the end of the year, your friend can claim the rent as charity donation and deduct it. His boss, my guess is recording the $ 300 as his company income from donation rather than personal income from rental activities. Is it illegal? Yes. Is it worth for you saying something? Not really.
PG1626 Mar 4 2012 - 11:26 pm
This is not legal – The employer is not a charity and as such can not claim to be one. He needs to be turned in the Labor board and the IRS. Of course if that happens it might mess up your friend.
Patricia S Mar 4 2012 - 11:44 pm
Sounds as if the boss is trying to elude paying taxes on money he receives (income) from a rental property.
champion of the underdog Mar 5 2012 - 12:07 am
No employer has the right to deduct rent from an employee’s pay. The employee should notify the employer that from now on, he will pay his rent by check. Make sure on the check that the memo says payment for rent for month of…and the address. Then insist for a rent receipt. No more “charity donation”. this is definately illegal. If the employer refuses to cooperate, he should call the IRS, or tax devision of what ever country he is in and report that employer is failing to claim this income.