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Paying your employees in cash???

Discussion in 'Starting a Lawn Care Business' started by spitfire3416, Feb 6, 2013.

  1. spitfire3416

    spitfire3416 LawnSite Senior Member
    Posts: 520

    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.
  2. Smallaxe

    Smallaxe LawnSite Fanatic
    Posts: 10,081

    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... :)
  3. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,390

    You best hope you never get an unemployment audit.
  4. Pietro

    Pietro LawnSite Senior Member
    Posts: 857

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

    xclusive LawnSite Bronze Member
    Posts: 1,052

    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.
  6. GMLC

    GMLC LawnSite Platinum Member
    Posts: 4,353

    Not a good idea if you take your business seriously. Being legit and professional means doing it by the books.
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  7. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,931

    Does he even pay taxes on his business? He sounds like a big ripe apple for the IRS.
    Posted via Mobile Device
  8. GMLC

    GMLC LawnSite Platinum Member
    Posts: 4,353

    If he is even paying taxes at all I would bet its not on the cash he pays his employees....
    Posted via Mobile Device
  9. hackitdown

    hackitdown LawnSite Silver Member
    Posts: 2,505

    My workers comp is based on payroll. Without a payroll, no comp coverage.
  10. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,353

    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.

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