Be careful paying workers under the table!!!

Discussion in 'Lawn Mowing' started by JimLewis, Oct 17, 2007.

  1. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,842

    Here's a story from today's news. At first sight, most people would assume that this guy was busted mostly because his workers were illegal. But that in itself isn't the reason he was busted so hard. When you read the article, you learn that the big reason he was busted was tax evasion and not reporting he had employees.

    I see this all the time. I know two company owners who do this. They get paid in cash or have the client make the check out to their personal name then they go to the bank and just cash the check. That way they never have to pay taxes on that income and never have to deposit it into their bank account and create a tax trail. Then they can pay their workers in cash and avoid all that pesky tax, worker's comp., and filing issues.

    Sounds good in theory... UNTIL YOU GET 30 MONTHS HARD PRISON TIME!

    .

    http://biz.yahoo.com/ap/071017/ne_immigration_raid.html?.v=1





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  2. supercuts

    supercuts LawnSite Silver Member
    Posts: 2,785

    looks like he did much more than pay under the table.
     
  3. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    all it takes is a few pissed off employee's or a disgruntled customer....not only does he have to pay 30 months of his time but he has to return the 400 large and pay 200 large in fines. not counting any other legals/lawyer, ect fees that will be added to the final bill....Now the key will be for the government to collect the money...
    I'll bet there will be some equipment for sale in Omaha pretty soon...
     
  4. OMG

    OMG LawnSite Senior Member
    Posts: 275

    This is why Uncle Sam cared:



    According to the criminal complaint, Wortman told federal officials that the company's gross sales in 2005 were more than $1.5 million.
     
  5. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,842

    Yah, that's true. But it's more than just the dollar volume of sales. There are tens of thousands of companies in the U.S. with sales equal to or greater than that who employee workers that are probably illegal. The difference is; they don't hide their workforce. They have regular payroll, file quarterly tax reports, pay taxes, maintain papers required by INS, and account for all of their income.

    When you claim anything over a couple of hundred thousand in revenues but only list 1 or 2 employees, you can bet your A$$ you're going to get some unwanted attention from the men in black.
     
  6. OMG

    OMG LawnSite Senior Member
    Posts: 275



    That makes sense. However, my point was the government (at least around here) seems to be more concerned with missed revenues than illegal weed wackers.
     
  7. STRINGALATION

    STRINGALATION LawnSite Senior Member
    Posts: 777

    i agree, cant put my finger on it but if the total was 400k and i paid it in checks less than 10k seems to me money laundering was part of this and does harboring mean they lived there.
     
  8. STRINGALATION

    STRINGALATION LawnSite Senior Member
    Posts: 777

    :clapping:
    :clapping:
     
  9. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,842

    Yah, that's true. But the reason is because there isn't widespread agreement on how to handle the illegal immigration issue. But there is widespread agreement on paying taxes. The government, both political parties, and the general public are all in pretty much widespread agreement that employers should report their employees and pay taxes.

    No matter what your stance is on illegal immigration, the problem remains that nobody can agree on how to handle it. On the far right, we have people saying we should just kick them all out today and build a big fence. The problem with that is it would lead to mass inflation, leave hundreds of thousands of businesses without workers, and lead us into a major economic problems. The people in this camp don't seem to want to compromise.

    Then there are people in the middle who agree that something has to be done to stop the flow of illegals but recognize it's probably not wise to just kick out hundreds of thousands of people who have been here for years or even decades. Many of them have families, kids who were born here and are U.S. citizens, stable jobs, houses, etc. So that's the so-called "amnesty bill" that Bush and much of congress supported earlier in the year but failed.

    Then there are people on the left who don't think we should do anything. They think that illegal immigration is fantastic and we should allow totally open borders and unfettered immigration. They don't believe in kicking anyone out. They don't believe in fences or any kind of enforcement at all. And the people in this camp don't seem to want to compromise either.

    Until politicians and citizens on both of the two extremes start to become more willing to compromise a little, you can expect nothing major to happen on the illegal immigration front anytime soon.
     
  10. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    But you have to start somewhere....start picking on citizens who don't pay taxes. basically though they solved two problems. collected unpaid taxes, and punished someone for hiring illegals...If they continue to punish those who knowingly hire illegals, the illegals will have to go elsewhere for work....
     

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