{"id":19030,"date":"2022-10-24T22:09:57","date_gmt":"2022-10-24T22:09:57","guid":{"rendered":"https:\/\/www.shrm.org\/resourcesandtools\/legal-and-compliance\/employment-law\/pages\/compensation-fraud-trial-advances.aspx"},"modified":"2022-10-24T22:09:57","modified_gmt":"2022-10-24T22:09:57","slug":"compensation-fraud-trial-against-trump-organization-advances","status":"publish","type":"post","link":"https:\/\/squarehr.com\/index.php\/2022\/10\/24\/compensation-fraud-trial-against-trump-organization-advances\/","title":{"rendered":"Compensation Fraud Trial Against Trump Organization Advances"},"content":{"rendered":"

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?An alleged scheme by the Trump Organization to fail to report and pay taxes on compensation provided to employees has resulted in nine counts of tax fraud, grand larceny and falsifying business records. We’ve gathered articles on the news from SHRM Online<\/em> and other media outlets.<\/p>\n

Jury Selection <\/p>\n

On Oct. 24, jury selection began in the trial of the Trump Organization, which is accused of evading taxes by compensating employees through off-the-books benefits like luxury cars, apartments and private school tuition.<\/p>\n

(NPR<\/a>)<\/p>\n

Two Trump Entities Allegedly Involved<\/p>\n

The Trump Organization comprises more than 500 corporate entities. Last year, the district attorney’s office accused two of those entities\u2014The Trump Corporation and Trump Payroll Corp.\u2014of awarding the off-the-books benefits to a few top executives who failed to pay taxes on the perks.<\/p>\n

(The New York Times<\/em><\/a>)<\/p>\n

Trump Not Implicated<\/p>\n

Former President Donald Trump is not a defendant and is not expected to be implicated in any wrongdoing. The Trump business has pleaded not guilty and said the prosecution is politically motivated. <\/p>\n

(CNN<\/a>)<\/p>\n

CFO Pleaded Guilty<\/p>\n

The Trump Organization and Allen Weisselberg, its longtime chief financial officer, were indicted last year following a yearslong investigation into the company’s financial practices by the Manhattan district attorney’s office. Weisselberg pleaded guilty <\/a>to 15 felony charges in August. <\/p>\n

Trump has criticized the investigation into his company and the charges against his longtime employee as part of a “witch hunt.”<\/p>\n

(NBC News<\/a>)<\/p>\n

‘De Minimis’ Gifts Are Not Taxable<\/p>\n

Employers may provide “de minimis” gifts that are not taxable to the employee. These small gifts may include tickets to the theater or sporting events; traditional birthday gifts or holiday gifts with a low fair market value (not cash or cash equivalent); flowers; and occasional break treats such as coffee, doughnuts, soft drinks and the like. <\/p>\n

For example, the employer is allowed to give employees a small gift on the employee’s birthday or a holiday turkey or ham without any taxable issues to the employee. However, if the employer gives the employee a gift certificate to purchase the item that could instead be used for general merchandise, the amount of the gift certificate would be treated as taxable income to the employee.<\/p>\n

(SHRM HR Q&A<\/a>)<\/p>\n

Policies on Gifts from Vendors<\/p>\n

Employers also need to be clear on what kinds of gifts from parties outside the organization are and are not allowed. Accepting gifts from vendors, customers and other outside parties can create the appearance of a conflict of interest. When establishing or updating holiday gift policies, be explicit about whether any gift-giving or gift-receiving at all is allowed.<\/p>\n

(SHRM Online<\/em><\/a>)<\/p>\n