re: How to find out if the bookkeeper is embezzling?

FICA is 6.2%

Medicaire is 1.45%

Go to IRS.GOV. download the withholding tables. You must know what you are claiming, eg. S-1, M-2.

Use the tables to determine the range being withheld. it is not precise but close enough.

but only a idiot would try and embezzle using payroll taxes.

Companies who are victims of embezzlement usually have themselves to blame. they allow the same person to open the mail, apply the cash and then also control the disbursement by being allowed to sign the checks going out.

Am I the only one who thinks this dude is an alter?

quote:

---

RegisteredPharmacist

---

If someone is embezzling money, you better audit your controlled substance inventory too.

We've never been missing over 5% of the schedule II's & lll's. (Which is the legal amount to come up short on)

And thank you everyone for the feedback on the subject at hand.

This is why separation of duties is important. You can hire an auditor to look at this exact activity. Am doing this for a client right now actually.

Separate people who do bank reconciliations, process payroll, make check disbursements, and handle petty cash.

How is paying cash for business expenses a major security hole?

She's not stealing narcotics.

She could be buying from her own supply company at inflated prices.

Cash is how mine took me for $250K over 10 years. Yes I'm an idiot

She has to file the reciepts for these purchases which are checked... And we're not going to pay cash for any business expenses for over around $100. It's rare we pay cash for business expenses but sometimes it happens...

quote:

---

Because taking cash to pay business expenses leaves a hole for theft.

---

Yep. Pay $300 cash for something, take $100 for yourself. If nobody's watching, you'll never notice the missing cash. There will likely be a few receipts missing or with faded ink at the end of the year.

Plus not all of your cash receipts go to the bank at the end of the day. Some cash stays on site for making change or petty cash expenses. So even if you go back and look at the end of day register reports, the deposits won't match exactly. And if there isn't a daily reconciliation, you won't be able to tell when there was too little cash. And you won't know if it's the bookkeeper or cashier who's responsible.

If your suspicions are based on tax withholding, you're worried about nothing. If something else is hinky, check into it further.