Payroll tax evasion

Discussion in 'Business Operations' started by Nebraska, Mar 24, 2002.

  1. Nebraska

    Nebraska LawnSite Senior Member
    Messages: 525

    I ran into a local sod company who pays all his employees as subcontractors thus no payroll tax. 6-8 employees total. Every year he and his wife go overseas for a winter vacation. Last year the vacation was to Mexico. Trip deducted as a "recruiting expense" I could go to a nice beach every winter if I "saved" payroll taxes on 6-8 employees!

    Know of another Lawn Maintenance Company with 4 employees. Pays all his employees $300 +or- a week cash. Mows yards for $20 for everything under 10k.

    I am sure others run into this crap in their areas!

    Been watching and waiting and nothing happens. Been told that it will catch up with them eventually. How long is eventually? What about the next illegitimate business that comes along and replaces them?
  2. John Allin

    John Allin LawnSite Bronze Member
    Messages: 1,488

    Someone will turn them in eventually....
    Someone will get pissed and have had enough, and will make the right calls to put an end to it....

    Wonder who might do that..... hmmmmmm....
  3. SprinklerGuy

    SprinklerGuy LawnSite Bronze Member
    Messages: 1,778

    I've seen it I didn't make the calls. But all it takes is for him to piss off the wrong guy and that will start the ball rolling.

    Live and let live is my motto. I can sleep at nite without worrying about that sort of thing. Maybe guys like that can sleep at nite too, but maybe not.

    I tend to worry more about my own business rather than the other guys' business. I have enough of my own worries, don't you?
  4. Tyner Lawn Service

    Tyner Lawn Service LawnSite Senior Member
    Messages: 328

    Hey Nebraska?? Where are you at??? I have subbed out some lawn care as they used their own equipment and trucks. 1099 them at the end of the year. I know I'm not the guy your talking about. Are you in Omahaha???
  5. Harvestman

    Harvestman LawnSite Member
    Messages: 233

    If you sub out the work to a guy with his own equiptment you can 1099 them. But if they are using your equiptment they work for you thus no 1099.
  6. SprinklerGuy

    SprinklerGuy LawnSite Bronze Member
    Messages: 1,778

    not to mention your sub better have liability insurance otherwise you will have to pay it..........
  7. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Messages: 1,712

    A lot of good points here. If your not part of the solution your part of the problem, yes or no????
  8. Nebraska

    Nebraska LawnSite Senior Member
    Messages: 525

    Guys, I would have a problem supporting an "illegitimate" business by subcontracting work to them.

    Are the customers that patronize businesses like this keeping this cycle going?
  9. SprinklerGuy

    SprinklerGuy LawnSite Bronze Member
    Messages: 1,778

    Yep. I'm afraid a lot of people still don't recognize landscape maintenance a legitimate "business". I hate to lump us all together, but even my sprinkler techs, including myself as the dispatcher, get treated like s..t once in awhile. The problem is every tom, dick and harry with a pickup some handtools and a mower or in my case a shovel and glue, can start a business in this field. Because of that we have problems like this. Hey Harold Foxx, wanna jump up on this soapbox with me or should we save our breath this time?

    Nebraska, if you do a search you will find lots of entertaining posts about this I'm sure!

    Bottom line, if we act like professionals and run our businesses like businesses I think we will attract the right type of customers and eventually if all of us do that, perhaps we will gain some legitimacy in the eyes of ALL the consumers!
  10. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Messages: 1,712

    Of course customers like this are keeping this going. Do you think there would be drugs beinbg sold on every street corner and side street in the cities iof there was not a demand.

    One of those old wealthy guys like JP Getty said the way to get rich is find a need and fill it. That is just what the low lifes in this industry do. It's not them, its the people that hire them. Low lifes gotta eat too. They found a need and they are filling it.

    What I've observed and I'm being super cynical here, is that what ever you grew up believing about life as it pertains to biz pretty much ain't so.

    Marketing doesn't work like it is supposed to, customers in huge qty don't care about quality or service, scum bags get the breaks, word of mouth is wondderful and work hard and do a good job, bad word ge5ts around, etc.

    I saw years ago and still see that cheating, incompetant scumbags still get plenty of work and are not out of business or in jail.

    The market place is really tooo full of good contractors in many areas for the number of good clients to be had. If that wasn't true then you'd have more chains of us with shops in different areas every 15-20 mi apart with people dying to buy from us.

    Whew, I'm tired now.

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