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Who pays their help CASH?

Discussion in 'Business Operations' started by jphag, Jan 29, 2008.

  1. jphag

    jphag LawnSite Member
    Posts: 219

    If you pay your help cash how do you deduct this come tax time?
  2. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,385

    scrubs seem to
  3. zz4guy

    zz4guy LawnSite Senior Member
    Posts: 901

    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.
  4. Dynamic

    Dynamic LawnSite Member
    Posts: 147

    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.
  5. pyrocare

    pyrocare LawnSite Member
    Posts: 96

    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.
  6. Mrs. H

    Mrs. H LawnSite Senior Member
    Posts: 708

    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.
  7. zz4guy

    zz4guy LawnSite Senior Member
    Posts: 901

    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?
  8. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,385

    Why dont your employess have id,s ? Ive never hired someone without an id. It is against the law.
  9. Mrs. H

    Mrs. H LawnSite Senior Member
    Posts: 708

    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.)
  10. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,385

    Because new homeland security laws require an employer to see 2 valid id,s . One has to be a picture id.

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