Accounts Recievable

[DickTracey]

My jurisdiction is: USA

If I work for a company and receive payments for their services via cashiers check or money order made out in my name, cash them at my bank, keep 10% for my commission, (of which I will pay taxes on), then forward the other 90% via western union to its company destination. Am I doing anything that would be illegal?

 

[FlaRiptide]

I see nothing illegal about this, simply be certain to keep detailed records. The payments which are made payable to you can be construed as YOUR revenue. The 90% payout would therefor be YOUR expense. Your net profit is thus the 10% commission. You are essentially self-employed.

 

[Theresagail]

However if the total 100% of the check is made out to you, and you cash them-- I would assume the IRS would assume you are liable for the full 100% per this is in your name-- regardless if you send the other 90% back to the company-- IRS does not care who you sent the $$ to they care that it was in your name originaly, --- I would talk to an accountant this sounds fishy