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 > Business > Lawn Care Employees Discussions

Lawn Care Employees Discussions Discussions on lawn care employee related issues.

Paying your employees in cash???


Lawn Care Employees Discussions

Discussions on lawn care employee related issues.
Reply
 
Thread Tools Search this Thread
  #1  
Old 02-06-2013, 02:58 PM
greenscaper123 greenscaper123 is offline
Member
 
Join Date: Oct 2012
Posts: 72
Rep Power: 3
greenscaper123 is on a distinguished road
Default 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.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 02-06-2013, 03:12 PM
willshome willshome is offline
new member
 
Join Date: Jan 2012
Location: Mass
Posts: 865
Rep Power: 0
willshome is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
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.......
Reply With Quote
  #3  
Old 02-06-2013, 03:34 PM
Sprinkler Buddy's Avatar
Sprinkler Buddy Sprinkler Buddy is offline
Senior Member
 
Join Date: May 2011
Location: Florida
Posts: 757
Rep Power: 5
Sprinkler Buddy is on a distinguished road
Default

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
__________________
Don't Keep Replacing Lawn Sprinkler Heads
Protect them with "Sprinkler Buddy"
CLICK HERE > http://www.sprinklerbuddy.com
Reply With Quote
  #4  
Old 02-06-2013, 03:57 PM
RoughCut RoughCut is offline
Junior Member
 
Join Date: Jan 2013
Location: Midwest
Posts: 18
Rep Power: 3
RoughCut is on a distinguished road
Default

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.
Reply With Quote
  #5  
Old 02-06-2013, 04:34 PM
SECTLANDSCAPING SECTLANDSCAPING is offline
new member
 
Join Date: Jul 2009
Location: CT
Posts: 1,912
Rep Power: 0
SECTLANDSCAPING is on a distinguished road
Default

Quote:
Originally Posted by RoughCut View Post
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.
Reply With Quote
  #6  
Old 02-06-2013, 04:46 PM
krzys666 krzys666 is offline
Member
 
Join Date: Dec 2011
Posts: 49
Rep Power: 4
krzys666 is on a distinguished road
Default

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.
__________________
Krzysztof
Zawadzki Landscaping
203-212-2498

www.zawadzkilandscaping.com
http://www.facebook.com/ZawadzkiLandscaping
Reply With Quote
  #7  
Old 02-07-2013, 08:07 AM
RoughCut RoughCut is offline
Junior Member
 
Join Date: Jan 2013
Location: Midwest
Posts: 18
Rep Power: 3
RoughCut is on a distinguished road
Default

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.

Last edited by RoughCut; 02-07-2013 at 08:10 AM.
Reply With Quote
  #8  
Old 02-07-2013, 12:36 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,574
Rep Power: 10
Steve has disabled reputation
Default

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?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #9  
Old 02-07-2013, 12:39 PM
stevef1201 stevef1201 is offline
Senior Member
 
Join Date: Apr 2010
Location: Central Florida
Posts: 1,236
Rep Power: 7
stevef1201 is on a distinguished road
Default

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.
Reply With Quote
  #10  
Old 02-08-2013, 09:58 AM
RoughCut RoughCut is offline
Junior Member
 
Join Date: Jan 2013
Location: Midwest
Posts: 18
Rep Power: 3
RoughCut is on a distinguished road
Default

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.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
paying help barry General Talk 9 01-05-2011 04:22 PM
Employees taking cash? Steve General Business Discussions 11 11-13-2007 02:02 PM
Paying More, 15% tiedeman Lawn Maintenance / Lawn Renovation 14 07-12-2007 08:30 PM
paying per job shortgut Gopher Software Support Archived Question & Answers - Read Only 3 03-13-2006 11:22 AM
How much are you paying? Gopher Tech General Business Discussions 2 11-04-2003 06:50 AM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
Yesterday 11:35 PM
by ExtremeLawncareServices
96 11,610
SCAG Tiger Cat DECK...
rower30
08-24-2013 10:07 AM
Yesterday 07:13 PM
by rower30
18 5,028
Your 2015 summer review.
Steve
09-01-2015 11:01 AM
09-03-2015 09:04 PM
by Chilehead
5 202
Sample commercial bid
burtle
09-02-2015 06:02 PM
09-03-2015 10:48 AM
by Steve
1 109
best way to.....
Wolf4dk
09-02-2015 11:35 AM
09-03-2015 06:45 AM
by Chilehead
4 105
John Deere 667a
acrajchel
08-30-2015 10:00 AM
09-02-2015 07:45 PM
by Just for Cuts
5 144
Dane Scag
Steve
08-28-2015 12:29 PM
08-28-2015 12:29 PM
by Steve
0 111
24 and 50 acre cemetery...
grassmasterswilson
08-18-2015 10:09 AM
08-26-2015 02:42 PM
by Steve
13 679
Rookie business question...
WarriorLandscapingCAN
08-05-2015 05:20 PM
08-26-2015 02:33 PM
by Steve
3 471
How to clean an old...
rmccutchan
08-16-2015 05:23 PM
08-26-2015 02:31 PM
by Steve
9 484
how to make customers...
Bradcook21
05-27-2015 05:04 PM
08-26-2015 12:25 PM
by kslawn
19 3,868
Needing a website built
burtle
06-17-2015 09:02 AM
08-25-2015 11:31 AM
by acrajchel
9 2,527
Big mowing job
Bradcook21
07-30-2015 03:57 PM
08-25-2015 11:23 AM
by acrajchel
17 1,099
ZTR Review
Shark1611
05-31-2012 10:42 PM
08-25-2015 11:16 AM
by acrajchel
8 3,808
Hi Everyone
mmays29
08-25-2015 08:16 AM
08-25-2015 11:15 AM
by Steve
3 152
Should I buy this Exmark...
googus
07-03-2015 09:22 AM
08-25-2015 11:08 AM
by acrajchel
11 1,308
Old Business New Owner
Toyman
06-17-2014 08:57 PM
08-25-2015 11:00 AM
by acrajchel
16 1,682
Hi everyone! We're new...
alltrades
08-22-2015 12:46 PM
08-24-2015 10:41 AM
by Steve
2 206
CAn I get some help with...
rootytalbot
08-11-2015 06:14 PM
08-24-2015 10:36 AM
by Steve
12 632
Hi
Wemowjunction
08-16-2015 08:45 PM
08-20-2015 01:46 PM
by Steve
11 466
Drive cable bad?
SGL1
08-10-2015 11:16 PM
08-20-2015 01:41 PM
by Steve
5 426
Hey there everyone
Cole8999
08-16-2015 04:42 PM
08-18-2015 04:35 PM
by Steve
3 298
Help with a truck
bdodson89
04-27-2015 08:15 PM
08-18-2015 11:47 AM
by rmccutchan
7 1,079
I need some aeration...
rootytalbot
08-14-2015 12:32 PM
08-18-2015 07:59 AM
by rootytalbot
7 539
Say Hello !!!
Steve
03-19-2007 11:18 AM
08-17-2015 04:34 PM
by Steve
1,229 406,711
Whats wrong with this...
GreenWorx
07-28-2015 07:56 PM
08-16-2015 11:42 PM
by rmccutchan
3 657
What's your next...
Steve
05-15-2015 11:54 AM
08-16-2015 11:09 PM
by SC93
16 1,296
New Biz
kufnerins
08-14-2015 05:52 PM
08-14-2015 08:56 PM
by Steve
1 252
Chemical and Fertilizer...
rmccutchan
08-09-2015 10:36 PM
08-13-2015 11:11 PM
by rmccutchan
6 470
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
08-13-2015 02:10 PM
by rootytalbot
12 2,145
Hello all thinking about...
bernie
08-11-2015 04:28 PM
08-13-2015 10:33 AM
by Steve
8 415
Logo Help Font Color
LZLC
08-08-2015 09:26 PM
08-12-2015 03:50 PM
by Steve
4 403
Pricing issue
Mr. Mow
07-07-2015 06:15 AM
08-12-2015 12:30 AM
by Jeff1
20 1,901
My new mower
Chilehead
08-08-2015 09:09 PM
08-11-2015 08:36 PM
by Chilehead
9 600
Thought this was a good...
Just for Cuts
08-06-2015 03:38 PM
08-11-2015 10:54 AM
by Steve
8 571
Plowing pricing
jcurr33
08-08-2015 04:58 PM
08-11-2015 10:51 AM
by Steve
6 605
Should I upgrade my back...
googus
08-07-2015 10:50 AM
08-11-2015 10:44 AM
by googus
7 492
Keeping it clean....
Wolf4dk
08-09-2015 11:31 PM
08-11-2015 06:34 AM
by Chilehead
7 419
I have been rude and...
biglee
06-15-2015 10:11 PM
08-10-2015 09:41 PM
by stallman419
12 2,820
Newbie Saying Hi.
LZLC
08-08-2015 09:22 PM
08-10-2015 11:20 AM
by Steve
1 301
How much do I charge to...
Chris Herrera
08-06-2015 09:30 PM
08-09-2015 11:31 AM
by biglee
2 522
scag SWZT review!
mattthelawnguy
07-23-2015 02:28 PM
08-07-2015 03:26 PM
by Steve
17 1,226
Best commercial contract...
sanlanct
08-04-2015 12:18 PM
08-06-2015 06:20 AM
by sanlanct
2 450
» Popular Tags
ad landscaping advertising aerocore applying bark billy goat brushcutter blowout bob villa bush contract help curb appeal services demonstration design door hangers edging employee problems equipment dealer equipment rental facebook flyers free advertising free lawn care google growing a lawn care business hiring how to hydro increase customers jobs landscape landscaping landscaping training lawn aeration lawn care lawn mowing marketing marketing secrets more customers business mr dave mulch new business ordinance per hour charge per hour service plowing pricing profit on employee roundup scag secrets to landscaping sell the vision seo shell shreaded solo solo backpack sprayer sq ft square foot swzt tree tree pics up sell employee walk behind web design website website design winterization wood www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 02:05 AM.


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

All times are GMT -5. The time now is 02:05 AM.

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