The Green Industry's Resource Center

spitfire3416 · #11 02-06-2013, 11:16 PM

Quote:

Originally Posted by 205mx

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.

Smallaxe · #12 02-07-2013, 07:35 AM

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...

AI Inc · #13 02-07-2013, 07:47 AM

Quote:

Originally Posted by nylesedwards

I have a small business (40 weekly customers) and I pay my employee in cash
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You best hope you never get an unemployment audit.

Pietro · #14 02-07-2013, 07:54 AM

My guess is if he stays small time he will be ok.

xclusive · #15 02-07-2013, 10:01 AM

Quote:

Originally Posted by 205mx

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.

GMLC · #16 02-07-2013, 10:58 AM

Not a good idea if you take your business seriously. Being legit and professional means doing it by the books.
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Patriot Services · #17 02-07-2013, 11:07 AM

Quote:

Originally Posted by 205mx

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.
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GMLC · #18 02-07-2013, 11:09 AM

Quote:

Originally Posted by Patriot Services

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

hackitdown · #19 02-07-2013, 11:22 AM

My workers comp is based on payroll. Without a payroll, no comp coverage.

Kelly's Landscaping · #20 02-07-2013, 11:42 AM

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.