Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum

» Welcome to the Gopher Lawn Care Business Forum
GopherHaul Landscaping & Lawn Care Business Marketing Forum

GopherHaul Landscaping & Lawn Care Business Marketing Forum (http://www.gopherforum.com/forum-index.php)
-   Lawn Care Employees Discussions (http://www.gopherforum.com/forumdisplay.php?f=50)
-   -   Paying your employees in cash??? (http://www.gopherforum.com/showthread.php?t=18057)

greenscaper123 02-06-2013 03:58 PM

Paying your employees in cash???
 
I have a friend who owns a small landscaping business and he pays his two employees in cash. I always thought this seemed kind of silly because than how can you claim that money spent on labor as a deduction, right? But what he does is, he makes sure he has enough cash coming in from his customers to cover his labor costs. So if he's paying out roughly $3k a month in labor, he makes sure he's pulling in $3k a month in cash. That way he never draws money out of business account. Same thing goes for his other business expenses. Stuff like, commercial insurance, mower payements, insurance etc. he pays out of his business account along with his own pay, and makes sure he has enough money coming in "on the books" to cover those costs. I'm pretty sure he has workers comp though in case someone gets hurt. Does anyone else do this or know of anyone it's backfired on? I keep telling him he's crazy but he's been doing it for a long time with no problems.

willshome 02-06-2013 04:12 PM

Paying cash can be a big problem
If he has workmans comp it will not pay them for their down time just med. Bills.
If he fires one of them they can sue.
If they damage someones stuff his insurane will not cover it.......

Sprinkler Buddy 02-06-2013 04:34 PM

Very bad idea, it will come back to haunt you eventually. Many businesses do this but many have had to shut down because of it too.

Everyone thinks it wont happen to me, till it does. lol

RoughCut 02-06-2013 04:57 PM

Not a good idea. I did it when I owned a construction company. "Everyone was doing it". Long story short, cost me $40,000.00. IRS came knocking on my door. Took my equipment, gave it back 2 months later. Lawyer cost me $ 13,000.00. I will never do that again. DON"T DO IT.

SECTLANDSCAPING 02-06-2013 05:34 PM

Quote:

Originally Posted by RoughCut (Post 121650)
Not a good idea. I did it when I owned a construction company. "Everyone was doing it". Long story short, cost me $40,000.00. IRS came knocking on my door. Took my equipment, gave it back 2 months later. Lawyer cost me $ 13,000.00. I will never do that again. DON"T DO IT.

thats a good story to learn from.


Workmans comp goes by payroll. If he doesnt have a payroll he has no workmans comp. Unless its for him personally. The only advantage he has is if someone gets hurt, they cant prove they work for him.

krzys666 02-06-2013 05:46 PM

i understand paying in cash but it can really hurt you. wait until your employe gets hurt or even loses a finger because of a mower or hedge trimmer. you will be up s**ts creek. or if he gets mad at you and you fire him he can go to the irs and they can close you down for a while, just because of there investigation.

RoughCut 02-07-2013 09:07 AM

My 2 cents again. Here's what I do. I work alone,any job I can't do I hire it done. I have never had a problem of going behind my back and stealing a customer. At first I took every Job, now I only take jobs that pay well, and customers pays on time. If for any reason I need help, I trade services, no money is exchanged. With the new health care laws that are coming, I don't want any employees. At the end of the year I may not have a large gross income as larger companies,but my profit % is higher. In my state ( IL) we can op out on worker comp, and get a refund . It took me 35 years to learn this. Should have listened to my dad and gone to collage.

Steve 02-07-2013 01:36 PM

Quote:

Long story short, cost me $40,000.00. IRS came knocking on my door. Took my equipment, gave it back 2 months later. Lawyer cost me $ 13,000.00. I will never do that again. DON"T DO IT.
This sounds like a great learning experience for everyone. Can you tell us a little more about the back story and how long of a process this was? Also how was it resolved?

stevef1201 02-07-2013 01:39 PM

Tips for running an illegal business
1. collect CASH for payments, do NOT report them on your income / expense report
2. Pay cash for ever thing you possibly can
3. now here is the most important part -PREPARED TO GO TO JAIL FOR TAX EVASION, INSURANCE FRAUD, STATE INSURANCE VIOLATIONS.

TIPS FOR RUNNING A LEGAL BUSINESS
1. hire a lawyer
2 have him set up your company legally
3 hire and accountant
4 have them do you books legally
5 MOST IMPORTANT STAY OUT OF JAIL.

RoughCut 02-08-2013 10:58 AM

If I tell the whole story, it'll be a book. Short story is this: Accountant didn't do their job correctly, caused an audit. Found workers classified wrong, had to pay back taxes, interest, and penalties. Hired 6 different lawyers, 2 different accountant, all had different ideas. About 2 years from audit to resolution. Found an retired IRS lawyer that helped me. He was not afraid of them. Got all my stuff back because of him. Family loaned me money to help , made weekly payments to IRS. Took 6 years to get released from the IRS. Heres what I do now: Only money in bank, for operating capital. ( 1 month)
Every thing is turned to cash
All investments are liquid
Borrowed money is hard money ( family,friends)
NO EMPLOYEES
This is not good for your credit rating, but have found cash talks.
Think of it this way: The IRS is a silent partner, they want their % win or loose.


All times are GMT -5. The time now is 07:05 PM.

Powered by vBulletin® Version 3.7.1
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
(C) 2011 Riggs Publications - Terms of use & Privacy Policy

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
leaf removal
Double J LLC
10-03-2014 05:24 PM
Today 07:02 PM
by achri12
22 2,443
These are the days on...
ExtremeLawncareServices
03-22-2014 10:12 AM
Today 07:00 PM
by ExtremeLawncareServices
176 14,108
Hi from IL
steveinil
Today 02:07 PM
Today 02:07 PM
by steveinil
0 21
WNY saying Hi.
Sargewesser
Today 07:27 AM
Today 07:27 AM
by Sargewesser
0 31
Group Buying Software as...
ferona
Today 06:49 AM
Today 06:49 AM
by ferona
0 34
How to: Use Thumbtack...
acrajchel
11-17-2014 06:39 PM
Yesterday 07:58 PM
by thom
17 571
How much do you up sell...
Essex Groundskeeping
11-23-2014 07:13 PM
Yesterday 06:29 PM
by stevef1201
8 180
This sucks...
Matther777
09-18-2014 05:56 PM
Yesterday 05:49 PM
by biglee
16 3,202
Pressure Washing...
WesleySnips
07-31-2014 07:13 PM
Yesterday 04:32 PM
by acrajchel
4 664
Hello from Kentucky
TRV
09-30-2014 06:42 PM
Yesterday 08:37 AM
by acrajchel
7 1,317
New website
Chilehead
11-20-2014 04:39 PM
11-23-2014 07:40 PM
by Just for Cuts
12 306
My site is on fronts page
tbtigers03
11-14-2014 05:58 PM
11-22-2014 10:49 PM
by Just for Cuts
16 532
Pics for website
tbtigers03
11-21-2014 05:40 PM
11-22-2014 10:01 PM
by Just for Cuts
3 165
Peco Bagger
AGPS
11-18-2014 02:20 PM
11-22-2014 05:56 PM
by AGPS
9 335
Beginner Mistakes:...
Steve
01-31-2007 12:45 PM
11-22-2014 02:42 PM
by stevef1201
22 6,196
Contract or no contract?
TRV
11-20-2014 09:18 PM
11-21-2014 09:33 PM
by TRV
3 196
Hi to you NOTHERNERS
stevef1201
11-11-2014 05:56 PM
11-21-2014 08:02 PM
by stevef1201
4 351
Billboards for marketing
ExtremeLawncareServices
11-16-2014 08:39 PM
11-21-2014 07:05 PM
by acrajchel
13 409
Belt dealer problem
googus
11-21-2014 08:45 AM
11-21-2014 06:36 PM
by Steve
2 146
Good help is hard to find
Hanks Lawn Care Services
11-19-2014 03:27 PM
11-21-2014 06:32 PM
by Steve
7 254
What is going on with...
biglee
11-14-2014 03:04 PM
11-20-2014 02:50 PM
by biglee
40 991
My advice for new guys
avetslawncare
11-15-2014 09:32 AM
11-19-2014 01:47 PM
by biglee
10 529
Lawn Care business...
crieg122
10-23-2014 02:23 PM
11-19-2014 12:39 PM
by acrajchel
28 1,892
raking leaves ?
robert8509
10-22-2014 10:19 PM
11-18-2014 04:24 PM
by acrajchel
14 1,487
Leaf removal
madmedic8575
10-24-2014 05:14 PM
11-17-2014 07:34 PM
by acrajchel
6 1,223
sod job
SGlawncare
10-30-2014 09:21 PM
11-17-2014 07:10 PM
by acrajchel
7 808
Customer wants me to...
Mr. Mow
11-09-2014 07:13 AM
11-17-2014 06:48 PM
by acrajchel
10 580
Hello!
Brian3137
11-11-2014 07:15 PM
11-17-2014 06:46 PM
by acrajchel
14 504
small biz in Phoenix,AZ
anthonyramos1
11-08-2014 09:35 PM
11-17-2014 05:59 PM
by acrajchel
2 354
Client won't pay...
WesleySnips
10-30-2014 03:53 PM
11-17-2014 05:37 PM
by acrajchel
22 1,417
Government contracts
avetslawncare
11-15-2014 08:50 AM
11-17-2014 12:59 PM
by Steve
2 284
Need help on deciding a...
Brian3137
11-10-2014 06:32 PM
11-17-2014 12:44 PM
by Steve
12 548
West cost lawn prices
SGlawncare
10-09-2014 10:51 PM
11-16-2014 07:54 AM
by stevef1201
8 1,638
So how do you guys...
Mr. Mow
10-26-2014 08:55 AM
11-15-2014 08:44 AM
by avetslawncare
14 1,752
Truck, Trailer,...
hawthornelawncare
12-23-2011 01:01 AM
11-13-2014 08:35 AM
by jrs.landscaping
81 31,894
The most dangerous part...
Steve
10-06-2014 03:45 PM
11-12-2014 05:05 PM
by stevef1201
14 1,723
A little hang up in snow...
stevef1201
11-08-2014 07:05 AM
11-12-2014 12:51 PM
by Steve
4 467
Bi-weekly winter...
lxarth
11-04-2014 08:37 PM
11-12-2014 10:06 AM
by WesleySnips
9 656
taking first steps...
sizemorelawncare
11-10-2014 08:24 PM
11-11-2014 01:21 PM
by Steve
1 365
Back Pack Blower
Ian Lovejoy
11-09-2014 08:41 AM
11-11-2014 08:12 AM
by Just for Cuts
4 419
Business Cards
crieg122
10-25-2014 01:03 PM
11-11-2014 07:56 AM
by Just for Cuts
12 1,369
How the unregister?
alive101
11-04-2014 07:39 AM
11-10-2014 01:48 PM
by Steve
4 640
Belt adjustment question
googus
11-05-2014 06:43 AM
11-10-2014 01:38 PM
by Steve
5 543
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
11-10-2014 01:25 PM
by Steve
2 382
Podcast
Shark1611
11-07-2014 05:42 PM
11-10-2014 11:41 AM
by Steve
1 344
hi, from Minnesota
rjklohn
11-07-2014 02:21 AM
11-07-2014 01:44 PM
by Steve
1 365
New to snow plowing
SS.Lawncare
11-05-2014 04:00 PM
11-07-2014 01:21 PM
by Steve
6 606
New Member
tonyap
11-05-2014 10:35 PM
11-07-2014 01:15 PM
by Steve
1 404
New to the business
jcurr33
11-05-2014 03:21 PM
11-07-2014 01:11 PM
by Steve
1 460
Lines
Matther777
11-04-2014 02:19 PM
11-07-2014 12:54 PM
by Steve
1 490
Read more about these lawn care business marketing categories.
General Business:
GopherHaul, Podcast
How to Estimate - Services To Offer:
Aeration, Apartment / Condo, bed edging, Color Change Plantings, Dethatching, Edging, Fall Leaf Cleanups, Foreclosed Homes, Gutter Cleaning, Hardscaping, Hedge Trimming, Home Safety Inspection, Irrigation, Landscape Project, Lawn Mower Repair, Mowing, Mulch Jobs, Outdoor decoration, Parking Lot Cleanups, Pet Waste Removal, Pressure Washing, Property Management, Snow plowing, Stump Grinding, Tree Removal
How to Estimate Jobs:
Lawn Care Business:
Barter, Bikini Lawn Care, Business Failure, Business loan, Business Plan, Debt, Debt Collection, Estimate or Proposal Form, Franchise, Fuel surcharge, How to sell, Insurance, Job Tracking, Lawn Care Contract, Lawn Care Customer Survey, Lawn Care Uniform, Lawn Care Videos, Operational Costs, Overhead Costs, Prepay, Pricing, Start up, Tiger Time Lawn Care,
Lawn Care Business Books:
Lawn Care Customers:
Buying customers, Commercial Customers, Customer Retention, How to get, Residential Customers
Lawn Care Employees:
1 Man Lawn Crew, Bonus Pay, training, Your First Employee
lawn care equipment:
bed edger, Lawn Care Truck, Leaf Sweeper, Mower, New Arrival, Trailer, UltraVac
Lawn Care Marketing:
Billboard, Brochure, Business Card, Community Projects To Promote Your Business, Coupons, Cross Promotion / Synergy, Direct Mail, Door hanger, door to door, Free Giveaway Contest, Free Lawn Care Flyer Template, Gift or Discount Cards, home show, Internet, Lawn Care Business Sales Letter, Lawn Care Logo, Lawn Care Marketing, Lawn Care Truck & Trailer Signs, Lawn Care Website, Lawn Signs, Magazine Ad, Magnets, Mailing list, Marketing on Craigslist.com, Newspaper Ads, Parade, Postcards, publicity stunt, Referrals, Review My Lawn Care Marketing Material, t-shirt, Welcoming Kit, Word Of Mouth
Seasonal Promotion Ideas:
4th of July, Armed Forces Day, Christmas, Election Day, Fall, Halloween, Memorial Day, Spring, Summer, Valentine's Day, Veteran's Day, Winter:
Software:
Estimation Software, Landscaper Software, Landscaping Business Software, Landscaping Estimate Software, Landscaping Software, Lawn Care Business Software, Lawn Care Estimating Software, Lawn Care Software, Mowing Software
Uncategorized:
Video:
Website:
Search Engine Optimization
» Lawn Care Business Discussion Categories
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 07:05 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 07:05 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy