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Discussion in 'Business Operations' started by jphag, Jan 29, 2008.
If you pay your help cash how do you deduct this come tax time?
scrubs seem to
You dont, but you are saving more money than you would if you report it, pay income, FICA, SS, insurance and all the other BS that goes w/it.
I have a few buddies help once and a while in the summer when things get busy and I'll give them cash out of my personal bank account.
Yeah, perfect pay cash so you don't need insurance, or any other REAL LEGIT BUSINESS requirements. Then even better you can complete with all real businesses at a fraction of the price and when you start putting legit busniesses out of business because they can't meet your lowballer prices you can pick up there customers. Good luck on being a fraud.
It may seem like you are saving money in the short term. If one of your employees gets hurt you will likely loose everything in a lawsuit. If the IRS catches wind of it through an audit or any other means then you will be paying 10x as much as you saved in penalties, fines, and interest.
If you are going to have employees be legit it just isn't worth it not to be.
Technically, we pay cash.
But, it's well documented and the taxes are deducted, etc. It's just, we've had SO MANY employees with no bank accounts, or no way to get to the bank, no ID to cash a check at the store, etc. We just figure up the pay, give them a copy for their records and go get the darn cash ourselves and hand it to 'em.
Just keep good records and back those records up, give them their copy and that's that.
Thanks!! I do my best!
Seriously I would feel uneasy paying a legit employee cash because there is no record saying you actually paid them. Couldn't they come back at you and sue you or something?
Why dont your employess have id,s ? Ive never hired someone without an id. It is against the law.
They have Social Security numbers. They don't drive. So, why would it be against the law to hire someone without an I.D.? if they have a Social...I've even seen their birth ceritficates. (And, no they're not illegal immigrants.)
Because new homeland security laws require an employer to see 2 valid id,s . One has to be a picture id.