I have a difficult situation in that I am employed by a family member at a university, and also am responsible the accounting for a small non-profit started by the same family member. Recently, one of our employees, employed by the university, took on a part time consulting job, which dropped his work load to half time for the university. Instead of my family member reporting to the university the change in working situation of his employee, he has come to an agreement with the employee that they will write a check to the non-profit for half of their university salary until the part time consulting job is finished.

This seems unethical to me, because the university, who pays my salary, is going to be ripped off in terms or retirement, benefits, employment taxes, etc. Realistically, this employee will not be "caught" working half time, however I don't want to set a precedence for my family member/employer. I am not paid from the Non-profit, however and the legal "comptroller", even though I am barely qualified. Where can I find legal precedence of a similar situation that I can bring to my boss/family member so that I am not bullied (yes... hes also a bully!) into doing what he wants.

Thanks -

Annon.

As an accountant, your explanations are pretty confusing.
From what I understand you are paid by an individual. Your concern is that the university is paying full liabilities on the other party paycheck... which provides full benefits also to this person.
If it is a big concern of yours, walk to the comptroller, "rat" on the person. They may adjust the situation, by making her part-time with no benefits...
I have the feeling that you will be soon looking for another job.
If so, take the time to learn.