Employees wanting big tax refunds

Discussion in 'Business Operations' started by hoyboy, Feb 6, 2006.

  1. hoyboy

    hoyboy LawnSite Senior Member
    from Chicago
    Posts: 346

    Any of you have employees who insist on having extra taxes withheld, or claim 0 dependents, just so they can get a big refund at the end of the year? It blows my mind how screwed up that logic is. I used to try explaining this to them, but I've gotten tired of it and just let them waste their money. It still sickens me though. I used to jokingly tell them if they wanted a fat check at the end of the year, just let me keep some and I'll pay it back plus a little interest...something the government won't do. Never got any takers.
  2. cgland

    cgland LawnSite Bronze Member
    Posts: 1,929

    They tend to think it's FREE money!:dizzy:

  3. 6'7 330

    6'7 330 LawnSite Bronze Member
    Posts: 1,823

    Their thinking, is the reason they are the employees, and you are the boss;)
  4. mybabyciv

    mybabyciv LawnSite Member
    Posts: 28

    My guys don't pay taxes......THEY WISH!
  5. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    It may make sense to you and me but how many people can save that money each week and still have it at the end of the year. Look at it as a forced savings account with no interest.
  6. Grassmechanic

    Grassmechanic LawnSite Silver Member
    Posts: 2,697

    This is a great example of why the schools need to incorporate mandatory financial management classes. Too many people have not been taught how to properly manage their finances.
  7. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    Yep, I saw it a lot too when I was a manager in a retail store. People that generally do not make a lot of money have no way of really saving money. The little bit extra they would be getting in their paycheck would quickly be sucked up to use on cigs or beer, etc. With the extra being withheld, this is the only way they can save up a little bit of money. Sad but true.
  8. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    I'm gettingback about a grand form the feds and 800 from the state....It pisses me off to no end thats about and extra hundred bucks each month. If I change my deductions any more, I'll end up paying and I'd rather not do that. Man I wish there was a federal sales tax and no income tax....it would be so much easier...put a 15% tax on everything but food from a grocery store...
  9. Mower For Less

    Mower For Less LawnSite Senior Member
    Posts: 823

    Some people just cannot save $20 or $30 a week. If its there, they HAVE to spend it, whether its Cigarettes, fast food, a new CD, a movie, whatever. Money burns a hole in their pocket. So as was mentioned before, its a forced savings plan with no interest. True the logic may be poor, and even irritating to some, but look at it this way. They proabably have a very low to no interest yeild savings account, which means what they are actually losing on interest is probably insignificant. As long as their not trying to bridge the gap on credit cards, then use the chunk to pay the credit cards off, then really who cares if they need some federal help with their savings plan.

  10. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    Yeah and these are the same people that probably use their refund to pay down some bills, credit cards....etc

    They wouldent be the ones heading to circuit city for the bigscreen that they didnt have enough room on their visa to get before the check?

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