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  #21  
Old 02-07-2013, 11:45 AM
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Patriot Services Patriot Services is online now
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This whole thing is a huge red flag. WC is not retroactive and not all claims are automatically approved. You will have a hard time proving the guy just happened to get hurt on his very first day of work. Once an investigation starts it will all unravel like a cheap shirt. Multiple agencies will get involved, charges will start flying, assetts frozen. If you think any of these employees won't roll on you guess again. It will be a huge life destroying ordeal because you want to save a few bucks.
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  #22  
Old 02-07-2013, 12:26 PM
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Florida Gardener Florida Gardener is offline
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Originally Posted by Patriot Services View Post
This whole thing is a huge red flag. WC is not retroactive and not all claims are automatically approved. You will have a hard time proving the guy just happened to get hurt on his very first day of work. Once an investigation starts it will all unravel like a cheap shirt. Multiple agencies will get involved, charges will start flying, assetts frozen. If you think any of these employees won't roll on you guess again. It will be a huge life destroying ordeal because you want to save a few bucks.
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Hahaha...I'm cracking up reading this
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  #23  
Old 02-07-2013, 01:09 PM
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spitfire3416 spitfire3416 is offline
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Originally Posted by Kelly's Landscaping View Post
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.
again, he doesn't really show an additional profit because he is paying his employees with the cash he receives from a select amount of customers. he has 30 or so customers that covers his labor costs. so he is really only showing a profit for 50 lawns. all of his deductions such as mower & truck payments, liability, work comp, truck ins etc counts towards those 50 lawns that are paying him on the books. and he still shows no profit at the end of the year so that way he avoids paying any extra income tax.
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  #24  
Old 02-07-2013, 01:34 PM
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GMLC GMLC is offline
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Quote:
Originally Posted by spitfire3416 View Post
again, he doesn't really show an additional profit because he is paying his employees with the cash he receives from a select amount of customers. he has 30 or so customers that covers his labor costs. so he is really only showing a profit for 50 lawns. all of his deductions such as mower & truck payments, liability, work comp, truck ins etc counts towards those 50 lawns that are paying him on the books. and he still shows no profit at the end of the year so that way he avoids paying any extra income tax.
No matter how you try to twist it into a good thing its still illegal....
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  #25  
Old 02-07-2013, 03:41 PM
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jrs.landscaping jrs.landscaping is online now
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Originally Posted by hackitdown View Post
My workers comp is based on payroll. Without a payroll, no comp coverage.
Same here. An employee HAS to be on the books to be covered by WC. Your buddies blowing smoke.......
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  #26  
Old 02-07-2013, 05:12 PM
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Kelly's Landscaping Kelly's Landscaping is offline
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Quote:
Originally Posted by spitfire3416 View Post
again, he doesn't really show an additional profit because he is paying his employees with the cash he receives from a select amount of customers. he has 30 or so customers that covers his labor costs. so he is really only showing a profit for 50 lawns. all of his deductions such as mower & truck payments, liability, work comp, truck ins etc counts towards those 50 lawns that are paying him on the books. and he still shows no profit at the end of the year so that way he avoids paying any extra income tax.
Then he is still screwing himself if he paid them correctly he would get to write off that off of the 50 he is being honest about, and then pocket the 30 he was being dishonest about. And he is also lying about workers comp or your just assuming he has it which he does not. It's is based on workers pay and if they can not verify what you paid then they do not know what to charge thus he couldn't have it since he has no proof of payroll to offer an insurance company.
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  #27  
Old 02-07-2013, 06:26 PM
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Pietro Pietro is online now
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^True, BUT dont forget, it costs an employeer approx 20% more to pay on the books. All the taxes and such that get taken out of the pay. Hey in our Obama world here is how his buddy gets away with this.....


John Does lawn service/landscaping. Cash only. John pays his workers all cash, doesnt show more than 10K in profit/sales on the books. Johns worker gets hurt, he just drops him off at the hospital. Guy claims no social security number or Id, and he gets his "Free" healthcare! Oops, its not free, it comes from my check!
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  #28  
Old 02-08-2013, 01:59 PM
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spitfire3416 spitfire3416 is offline
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Quote:
Originally Posted by GMLC View Post
No matter how you try to twist it into a good thing its still illegal....
i'm not... the guy said "why would anyone want to lose their biggest deduction of the year and pay income tax on money that they didn't get to keep?"

i was explaining how he gets around that...
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  #29  
Old 02-08-2013, 02:20 PM
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wegomow wegomow is offline
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[QUOTE=Pietro;4667971]I dont know if youll get anyone to admit to breaking the law...

I didn't think so either but at least one person did.
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  #30  
Old 02-08-2013, 08:54 PM
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jsslawncare jsslawncare is online now
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Quote:
Originally Posted by 205mx View Post
But isn't he missing out big on the deductions?
No, he is saving money by not paying payroll taxes. But I'm no accountant.
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