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?