Upon getting employment, the employee gets the amounts they are bound to receive and deductions that need to be made in every pay. A clear outline of these details comes in the paystub that the employee receives with every due payment. The details on the paystub come in handy when employees are seeking for loans or making applications that require one’s income to be declared. According to the state laws, it is illegal to fake the paystub in every instance. This comes in the instances where the employees intend to use the information either to acquire big loans or hide from certain financial obligations.
Tax paid by citizens provided with the main resource fort eh government to find a financial resource for its operations. In certain instances, the taxpayer fails to submit the required amount in taxes hence depriving the government of its resources. Use of fake paystubs is one of the approaches used by citizens to avoid compliance with the regulations and as well deprive the government of this important resource. According to the state laws, every individual or business establishment needs to declare the actual amounts earned within each financial period. The act of using fake paystubs to hide from the prevailing responsibilities is considered to be a fraud and an act that is punishable in the face of the law.
When providing loans, financial institutions take into consideration the available incomes from the borrower and this is stipulated by the paystub. Information on the paystub in this regard comes in handy when there is need f the borrower is able to repay the borrowed amounts. Cases of clients providing with fake information in the quest to get bigger amounts are however prevalent. The law stipulates this to be an illegal act and one that qualify the offender to receive lawful punishment through the process of the courts. Faking the paystub in this respect may subject the offender to receive a range of punishments that include fines or even jail terms. This comes irrespective of whether the loan applicant makes the repayment partially or in full.
Fake paystubs are also used by employers in certain instances. Employers in this regard seek to have exceptions on certain liabilities applied through the use of the fake documents. Based on what the employer seeks to achieve, they may either reduce or increase the amounts reflected on the paystub. It is an act punishable by the law and considered to be one of the common frauds. Employers in this regard need to provide with rightful information in regard to the employee earnings. The government, therefore, gets the rightful tax contributions alongside other institutions.