I discovered that in 2018 My GM, employee 1, added a Ghost employee to my payroll. This was done to pay another employee, employee 2, who worked for me, but as I found out later was on disability and was limited on what they could earn.
The GM would enter payroll information to Ghost employee and when had write checks to employee 2.
I need to correct payroll entries from ghost employee to employee 2 so that there payroll reporting is correct.
Ghost employee is a real person, friend of employee 2, not someone I know.
Employee 1 & Employee 2 have been terminated.
We are an S corp, in case that matters. To be clear, there was no theft, but this is payroll fraud and likely Social Security fraud in my opinion.
I have taken actions to prevent this from happening again, but I need to know how to correct QBO.
Thanks
