Buying Personal Items with Company Money

[Gushmunda]

I doubt there is a law regarding this question, but since this issue is getting under my skin and other employees skin, I may as well ask to see if anyone has an answer.

My boss/owner of the company uses company funds for his personal use. He has 1 large expensive truck for company and personal family use (trips, vacations, etc...). He too uses the company credit card (which is in his name) to purchase items for personal use and pays the bills with comapny money (assuming we all think that the monsy he spends on the Company Card is legitamate business $$). As a company we too pay for his wifes and daughters cell phone bills. (and who know what else).

Recently he has voiced that he wants to get a car that is more fuel economical than his truck that runs on diesel and gets about 12MPG. (this truck has just been paid off by the comapny). So he goes out and buys a car for 80,000 with comany money, and justifies it as an expense that is necessary to save money. (I nor anyone else sees this as such).

To add injury to insult, none of us at this 5 person comany has had a raise in 4 years.

My question is this. Is there any law that states that using company money for personal use is unlawful?

I have a feeling that he is just using the company and employess for a means to his ends, but I thought I would check anyway.

Oh. Yeah, the IRS has shown up a couple of times with a 'Check or Cuffs' option. A chekc has always kept them at bay.

Thanks.

Oh. Another question. Is there any law about smoking in a private company building? (my boss smokes inside and we cant get him to stop).

 

[Beth3]

My question is this. Is there any law that states that using company money for personal use is unlawful? If this is a privately held company, no. What you are not considering is that even though this is "company" money, the owner is personally liable for some if not all of these items as taxable income. Co-mingling personal income and company funds is messy bookkeeping-wise but it is not illegal as long as all earnings are being appropriately declared and income taxes are being appropriately paid.

I do understand that all this would grate on employees if they haven't had a raise in four years but jumping to the conclusion that the owner is doing something illegal may be completely off-base. If you go start your own company, you can have all your personal expenses paid by the business too, as long as you follow the necessary income-tax reporting rules.

Is there any law about smoking in a private company building? That's entirely a matter of any municipal (local) ordinances. The answer to your question is probably not since it's a private building though.