My fiancée and I used to deliver paper routes. A year or so ago we decided to drop the route and transfer it to his Mother who has since been doing the job. The checks are still in my fiancée’s name, but they’ve been cashed and deposited into his mother’s accounts. We have bank account records and pay stubs to match together as proof of these transactions.
Here’s the situation: last night his Mother came home to find a notice on their door from the landlord that they’re being removed from their apartment by August 30th so that his son can move in instead. It is in the lease that they can be removed with 30 days’ notice. The biggest problem is, in looking for a new apartment, she will not have pay stubs to prove her employment.
Is there a way to prove that we’ve been paying her as, essentially, a sub-contractor without a direct check? Will we be coming into trouble with taxes?? (We’ve been paying the taxes as if we’ve been working the routes as usual and not paying a ‘sub-contractor’.
Any advice would be greatly appreciated.
**Edit: We're in Pittsburgh, PA. We have been completing the taxes from the route as we did prior with our own taxes. We never owe anything on it so we've never had to ask her to pay them. As far as the lease on a new apartment, co-signing is not an option. We are not going to get roped into another scenario with them like this, regardless of if they promise to pay the bills.