Register free!

The Green Industry's Resource Center



Reply
 
Thread Tools   Display Modes
  #11  
Old 02-07-2013, 12:16 AM
spitfire3416's Avatar
spitfire3416 spitfire3416 is offline
LawnSite Senior Member
 
Join Date: May 2011
Location: Central Jersey
Posts: 384
Quote:
Originally Posted by 205mx View Post
But isn't he missing out big on the deductions?
Not really because he pays his employees with the cash that he gets from his customers. He has something like 80 accounts and has 30 of them paying off the books. This covers his labor costs. I don't really think he's losing out on that. Just the risk of being audited.
Reply With Quote
  #12  
Old 02-07-2013, 08:35 AM
Smallaxe Smallaxe is offline
LawnSite Fanatic
 
Join Date: May 2007
Location: Central Wisconsin
Posts: 9,984
What proof does the employee have that he even has a job,,, let alone working for a particular guy that he's trying to get the courts to sue or the clinics to provide ins... then if he's illegal nobody's saying nothing... Should any of your I M Force be caught or killed, the Secretary will dissavow any knowledge of your actions...
__________________
*
Now that I know that clay's texture(platelets) has nothing to do with water infiltration, percolation, or drainage
,,, I wonder what does...
*
Reply With Quote
  #13  
Old 02-07-2013, 08:47 AM
AI Inc's Avatar
AI Inc AI Inc is offline
LawnSite Fanatic
 
Join Date: Dec 2007
Location: Southern NH
Posts: 22,060
Quote:
Originally Posted by nylesedwards View Post
I have a small business (40 weekly customers) and I pay my employee in cash
Posted via Mobile Device
You best hope you never get an unemployment audit.
__________________
Reply With Quote
  #14  
Old 02-07-2013, 08:54 AM
Pietro's Avatar
Pietro Pietro is offline
LawnSite Senior Member
 
Join Date: Apr 2006
Location: The Garden State
Posts: 855
My guess is if he stays small time he will be ok.
__________________
Pete
Reply With Quote
  #15  
Old 02-07-2013, 11:01 AM
xclusive xclusive is offline
LawnSite Senior Member
 
Join Date: Dec 2009
Location: Northern NJ
Posts: 949
Quote:
Originally Posted by 205mx View Post
But isn't he missing out big on the deductions?
Yes and no. By the time he is done paying all the different taxes you have to pay when you have employees on the books, I am sure it all equals out. It does suck for his employees though cause they cannot collect unemployment during the off season though.
Reply With Quote
  #16  
Old 02-07-2013, 11:58 AM
GMLC's Avatar
GMLC GMLC is offline
LawnSite Platinum Member
 
Join Date: Jun 2010
Location: New Hampshire
Posts: 4,367
Not a good idea if you take your business seriously. Being legit and professional means doing it by the books.
Posted via Mobile Device
Reply With Quote
  #17  
Old 02-07-2013, 12:07 PM
Patriot Services's Avatar
Patriot Services Patriot Services is online now
LawnSite Fanatic
 
Join Date: Jul 2006
Location: Tampa FL
Posts: 8,824
Quote:
Originally Posted by 205mx View Post
But isn't he missing out big on the deductions?
Does he even pay taxes on his business? He sounds like a big ripe apple for the IRS.
Posted via Mobile Device
Reply With Quote
  #18  
Old 02-07-2013, 12:09 PM
GMLC's Avatar
GMLC GMLC is offline
LawnSite Platinum Member
 
Join Date: Jun 2010
Location: New Hampshire
Posts: 4,367
Quote:
Originally Posted by Patriot Services View Post
Does he even pay taxes on his business? He sounds like a big ripe apple for the IRS.
Posted via Mobile Device
If he is even paying taxes at all I would bet its not on the cash he pays his employees....
Posted via Mobile Device
Reply With Quote
  #19  
Old 02-07-2013, 12:22 PM
hackitdown hackitdown is offline
LawnSite Silver Member
 
Join Date: Apr 2004
Location: Groton, MA
Posts: 2,258
My workers comp is based on payroll. Without a payroll, no comp coverage.
__________________

Supah-Duty
Exmark-Gravely-Scag
Stihl-Redmax
Reply With Quote
  #20  
Old 02-07-2013, 12:42 PM
Kelly's Landscaping's Avatar
Kelly's Landscaping Kelly's Landscaping is online now
LawnSite Gold Member
 
Join Date: Dec 2003
Location: Milford CT
Posts: 3,776
If I paid my guys off the books I would be showing an additional 60-70k a year as a profit and be expected to pay income taxes on it. I personally haven't paid income taxes in over 10 years my deductions are that high. Why would any one wish to lose their biggest deduction and pay income taxes on income you didn't get to keep.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 01:03 AM.

Page generated in 0.07994 seconds with 7 queries