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LucasArthur
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Hi Rachael,

Personally i find this question quite perplexing, not about the cash side of things but more about the record keeping and other obligatory processing requirements.

Surely, if they were a said employee with set hours or hours worked etc that a record would have been kept of both the hours worked + the taxes paid + superannuation and the likes? Whether it be on the computer, in a diary or other methods?

And if a contractor or subbie or so, they surely would have issued an invoice? to back track?

Understanding this is not answering your question, my comments are more about how you move forward to ensure documentation does not go ‘missing’ in the future.

Would love for an accountant to jump on as i see this as looking for an expense to right of inappropriately spent funds rather than wages? As if you do not have records or files kept to know what the money was for other than ATM receipts, it could be for the pokies as far as the tax office is concerned… Sorry for sounding harsh, and please i am not saying anything untoward is occurring just trying to say it could be for ANYTHING if it is merely an ATM withdrawal.

Which leads me onto, why do you pay them cash? Paying them cash can lead you into all sorts of problems such as the predicament you are currently in.

In this case, i would have whatever limited paperwork you have handy when you go to your accountant as he/she will know the recourse of the actions and what needs to be done to rectify it.. Although as mentioned already, i would be reviewing your own personal processes of record keeping moving forward and learn from this error.

Cheers
Jason

Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888