Cash with NO tax?

[Slcareco]

Hey, I'm working on my service agreement at the moment and I'm stumped on the whole billing option/ payment option. Should I state that if they pay in cash they are not applicable for taxes?? and the opposite for checks? Also should i have other billing options other then monthly as performed?

What do you guys do? Do you send the invoice out with the charge or taxes and have a note saying omit tax if you send cash?

HELP!!


Thanks in advance!

[Rickco]

Do not make it any more complicated for yourself. If you buy mulch or any other thing, you have allready paid tax on it. Hers your bill. Thank you.

[wski4fun]

Whether they pay cash or not, you still have to report it. If you are not planning on doing that, paying the taxes that is, I might not post it on an open forum.

[maxkicker]

you cannot charge tax on labor. if you are selling them something like plants/mulch whatever then you can charge tax on that
what kind of fool would send cash in the mail anyway?

[Slcareco]

thanks guys so basically dont give the offer? and about diff billing options for like mowing dont offer nething other then monthly?

[Slcareco]

theres a ny labor tax

[MMLawn]

you cannot charge tax on labor. if you are selling them something like plants/mulch whatever then you can charge tax on that
what kind of fool would send cash in the mail anyway?


That's very wrong info. In many states you do have to charge state sales tax and labor/services and I do also believe that NY is one of those states.

[maxkicker]

theres a ny labor tax

i couldve sworn i put "in maryland in that post"
sorry i dont want to mislead/give bad advice to anyone
im sure in maryland though straight from the accountant

[fiveoboy01]

That's very wrong info. In many states you do have to charge state sales tax and labor/services and I do also believe that NY is one of those states.

THANK YOU.

Sometimes I wish people would quit spouting mis-informed info.

[maxkicker]

THANK YOU.

Sometimes I wish people would quit spouting mis-informed info.
and i wish people could hold back there little jabs especially after i just appoligized
but some people make mistakes and some people are jerks, so our wishes may never come true


again sorry "feel kinda bad" next time ill take the time to research others states b4 giving input
asthmas got me down so i feel the need to be in the ac posting here

[MMLawn]

again sorry "feel kinda bad" next time ill take the time to research others states b4 giving input
asthmas got me down so i feel the need to be in the ac posting here

no problemo dude.......and after you have been on here a while you'll see tons of other states laws posted

[newz7151]

People make this mistake all the time. You DO NOT charge tax on labor or materials.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
you COLLECT it. For the gov. which in turn opens an inquiry on you whenever somebody farts, gets a little happy and decides they feel like working.

[fiveoboy01]

and i wish people could hold back there little jabs especially after i just appoligized
but some people make mistakes and some people are jerks, so our wishes may never come true


I wasn't really jabbing at you specifically, it was more of a general statement. Just came across that way.

[Slcareco]

Anyone have an answer for my orignal ques? about a billing option?

[fiveoboy01]

Anyone have an answer for my orignal ques? about a billing option?

Just charge tax to everyone. Why make it more complicated for yourself?

And yes, I'd strongly recommend you do monthly billing. I submit invoices by the 5th of each month for the previous month's services. I already spend enough time at my computer doing billing once a month, I think it would be a nightmare if I did it once a week.

[Slcareco]

well i mean ive seen contracts with 7 months 9 months 12 months so i wasnt sure.

[GardnerLandscaping]

You want monthly billing unless they want to prepay. Or else you'll have someone take you for a good amount. You might want to offer a discount for prepayment.

If they pay cash, such as in person, you want to give them a receipt, which is like an invoice but specifies they paid in cash. Signing is a good thing to do. It is for them to prove they paid for service. Just preprint these and leave blanks to fill in on the spot.

You already have them signing the contract to authorize for you to do the work for the stated amount and over the stated term so you can proove they authorized for you to maintain their yard through the term stated.

I'm still winging my business since I'm so small. I have a preprinted log where I record date, time, description, and amounts. I have preprinted contracts and service agreements that I fill in the blanks. I have preprinted invoices that I leave at the site after filling them in--hey I save on postage and usually says, i'm giving you a discount and need cash flow, please pay promptly. very sloppy.

I'm still doing this so that I can get a better feel what the agreements and invoices need to say and for practice before I become professional.

I need to have the hand written logs and transfer them to something like quick books and either word process and print the invoices and contracts or have them printed from something like quick books and just mail the invoices monthly.

[PMLAWN]

Not sure about NY- I know some states charge sales tax on services (NC is thinking) BUT
I would never state anything like that in a contract. I also made it clear that we would NEVER accept cash from a customer. Too many problems can occur

[Team-Green L&L]

Hey, I'm working on my service agreement at the moment and I'm stumped on the whole billing option/ payment option. Should I state that if they pay in cash they are not applicable for taxes?? and the opposite for checks? Also should i have other billing options other then monthly as performed?

What do you guys do? Do you send the invoice out with the charge or taxes and have a note saying omit tax if you send cash?

HELP!!


Thanks in advance!

Not sure if anybody said this, but tax fraud is a mess and a felony. Under-the-table jobs must be claimed on a 10-99. Embezlemnet an Fraud are cuss words!

[evergreenedmond]

well i mean ive seen contracts with 7 months 9 months 12 months so i wasnt sure.

the best way I've found to handle this is if it's a small property just do a pro-rated contract for the growing season (should be 7-8 months) or send them itemized bills at the end of each month for work completed. If it a large property (for me I would consider anything over $20,000 anually large) stretch it out over 12 months. It will help you get through the winter but remember that it will be a little leaner in the busy months. On your tax question I would talk to a CPA about that. Good luck

[daveintoledo]

if your required to collect taxin your state, Ohio is one of them, ..

just put it in writting in your contract that you are breaking the law, it will make it easier on the prosecutor...

[eruuska]

I think the original poster's question was related to collecting sales tax with a cash payment as opposed to a check payment.

ALL forms of payment are equally subject to sales tax collection! I suspect the original poster has heard some lowlife say something like "Just pay me cash, then I won't have to pay taxes on it!" Which is one of the oldest tax evasion techniques there is.

Just because someone pays in cash does not mean that tax laws are null and void! Pay your taxes! Collect sales taxes where you are supposed to! Know the laws in your state!

Whew! Hope this helps.

[SidelinePropMgr]

Youmust report tax on EVERYTHING uless they provide you with a tax exempt I.D number.

[JJLandscapes]

dont put anything like that in your contracts as it will leave a paper trail... if you accept cash like 99% of landscapers do ( the 1 percent is almost everyone on this board)

use seperate invoices for cash customers or none at all if they dont need it if there are any skipped numbers in your invoices due to the cash customers and you get audited then u will get cauught. spend the cash for daily things never ever deposit cash into a business account or anything you dont have to
use cash everywhere dont buy a luxury car if you are telling the govt u are making 25k a year unless you can back it up in case irs comes for you ... things of that nature


ive dealt with 3 accountants and everyone of them has told me these same exact tips they said 90% of people who get audited are in the 100k+ income range and if you only make 50k on the books the chances are slim they think i make $200 a week with this business but im 22 the benz is under my mothers name and so is the mortgage


do i have a higher chance of getting caught? obviously yes so i dont need a lecture from the hall monitors on this site i have a 2% chance instead of a 1% chance of getting audited by a "on the books company"

[PMLAWN]

dont put anything like that in your contracts as it will leave a paper trail... if you accept cash like 99% of landscapers do ( the 1 percent is almost everyone on this board)

"
So JJ, I think you are telling everyone the best way to cheat the GOV. and also me (as a tax paying person).:hammerhead: :hammerhead:
And your accountants are not too good either-- There is a percent of each bracket that will be audited.
I do not take cash because I WANT the paper trail as if a customer gives money to my guys, I have no way of proving it.
The chances of me being audited are also very slim, but so what, I am a US citizen that wants what the U.S.of A. provides-- and I am happy to pay the dues for that. If you are not, fine-- but keep it to yourself.

[ChadsLawn]

dont put anything like that in your contracts as it will leave a paper trail... if you accept cash like 99% of landscapers do ( the 1 percent is almost everyone on this board)

use seperate invoices for cash customers or none at all if they dont need it if there are any skipped numbers in your invoices due to the cash customers and you get audited then u will get cauught. spend the cash for daily things never ever deposit cash into a business account or anything you dont have to
use cash everywhere dont buy a luxury car if you are telling the govt u are making 25k a year unless you can back it up in case irs comes for you ... things of that nature


ive dealt with 3 accountants and everyone of them has told me these same exact tips they said 90% of people who get audited are in the 100k+ income range and if you only make 50k on the books the chances are slim they think i make $200 a week with this business but im 22 the benz is under my mothers name and so is the mortgage


do i have a higher chance of getting caught? obviously yes so i dont need a lecture from the hall monitors on this site i have a 2% chance instead of a 1% chance of getting audited by a "on the books company"



:clapping: until someone on the internet finds out who you are and turns you in for the post you just added. You just opend your secret to everyone on the net.
I wont turn you in, because I dont really care how you live your life. Just be careful. It isnt the 80's anymore and you can find any kind of info on the internet now.

[ChadsLawn]

:weightlifter: wooohooo 400 posts in 5 years...:weightlifter: sorry had to

[Slcareco]

thank you all for the info, so if someone comes up to me and says here the cash for this month just tell them it be best to take a check and not take the cash or take the cash and make a reminder or w/e?

[robbo521]

you do not get a 10-99 unless its 600 or more.we get one from our church.if it is under you wont get one.

[daveintoledo]

you report all income unless you are a lying, cheating, stealing scumbag of a lowballer...

or they can call you suzie like your cell mate will...

[Wonder Women]

In NY if a Contractor does a Capital Improvement for a customer and the customer provides the contractor with a properly completed Form ST-124, Certificate of Capital Improvement, no sales tax is required to be collected from the customer. On the other hand, when a contractor performs a job that constitutes a repair,maintenance,or installation service to real property, sales tax must be collected from the customer, unless the contractor receives a properly completed Form ST-119.1, Exempt Organization Certification, or other applicable exemption document.
Not sure if this is the case for other states but in NY it is.

[DRM Ventures]

dont put anything like that in your contracts as it will leave a paper trail... if you accept cash like 99% of landscapers do ( the 1 percent is almost everyone on this board)

use seperate invoices for cash customers or none at all if they dont need it if there are any skipped numbers in your invoices due to the cash customers and you get audited then u will get cauught. spend the cash for daily things never ever deposit cash into a business account or anything you dont have to
use cash everywhere dont buy a luxury car if you are telling the govt u are making 25k a year unless you can back it up in case irs comes for you ... things of that nature


ive dealt with 3 accountants and everyone of them has told me these same exact tips they said 90% of people who get audited are in the 100k+ income range and if you only make 50k on the books the chances are slim they think i make $200 a week with this business but im 22 the benz is under my mothers name and so is the mortgage


do i have a higher chance of getting caught? obviously yes so i dont need a lecture from the hall monitors on this site i have a 2% chance instead of a 1% chance of getting audited by a "on the books company"

unbelievable...........

[Prestige-Lawncare]

well i mean Ive seen contracts with 7 months 9 months 12 months so i was sure.

Something I read on here a while back that I liked ... do not use the language "contract" .... call it a "service agreement". The word contract scares a lot of people.

:weightlifter:

[Allure]

If you are not charging tax to those paying cash you are breaking the law so i would not put that in writing.
NJ also taxes labor.

[Tvov]

thank you all for the info, so if someone comes up to me and says here the cash for this month just tell them it be best to take a check and not take the cash or take the cash and make a reminder or w/e?

Always take the cash or check if they offer it! Then, yes, make the effort to make up a receipt. If you do monthly billing, go ahead and send them a monthly statement showing that they paid you. Cash is fine, you just have to keep track of it. After a while, you will find that checks are better and easier to keep track of, assuming you are trying to be legal.

Many consider it one thing to take cash under the books for a small job here and there, but to do it JJLandscapes way is simply very illegal.

[BQLC]

Something I read on here a while back that I liked ... do not use the language "contract" .... call it a "service agreement". The word contract scares a lot of people.

:weightlifter:

I like that it also sounds more personable

[DRM Ventures]

I always use "agreement"...

[Allure]

Great posts PMlawn & DaveinToledo.
Too many people in this great country take money out of our pockets whenever they don't pay their fair share of taxes or commit fraud (insurance etc.). They seem to think they are just taking it from the governments pockets without realizing that the governments money is our money.

The really dumb ones put it in writing for all to see.

On the second job i did this year the customer ignored the balance on the invoice & wrote a check minus the tax. After arguing with her i decided it was best to put it behind me & pay the tax my self (it was a small install thankfully). If she wants more work done she will have to find someone else.

[eruuska]

ive dealt with 3 accountants and everyone of them has told me these same exact tips they said 90% of people who get audited are in the 100k+ income range and if you only make 50k on the books the chances are slim they think i make $200 a week with this business but im 22 the benz is under my mothers name and so is the mortgage


What happens when Mommy decides to cheat you by taking your house and your "benz", just like you're both cheating all of us? Don't laugh, she's already shown she has no ethics, as have you.

[DRM Ventures]

isn't just beautiful what is passed down from Mother to son...... Did she buy you a slim jim for your 14th birthday.....

I hope you don't have kids...

D

[fiveoboy01]

ive dealt with 3 accountants and everyone of them has told me these same exact tips they said 90% of people who get audited are in the 100k+ income range and if you only make 50k on the books the chances are slim they think i make $200 a week with this business but im 22 the benz is under my mothers name and so is the mortgage



Probably because your mommy owns the Benz and the House, NOT you...

[JJLandscapes]

Probably because your mommy owns the Benz and the House, NOT you...


lol yea u got it *trucewhiteflag*

[JJLandscapes]

oh yea on a side note i just recently got audited by IRS for when i was 19 which has to be some sort of record for youngest age due to one of my accountants that was arrested. and nothing happened at all to me somehow and no money is owed

[Allure]

what shall it profit a man, if he should gain the whole world and loose his own soul.

[fiveoboy01]

lol yea u got it *trucewhiteflag*

I accept your surrender....