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: 747
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: 37,351
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
Pissed off customers
stonegatedesigns
Today 05:29 PM
Today 06:31 PM
by biglee
1 30
I can't believe people...
ExtremeLawncareServices
Yesterday 10:29 AM
Today 03:51 PM
by jrs.landscaping
3 134
Show us your stripes
Just for Cuts
05-21-2015 03:07 PM
Today 03:37 PM
by jrs.landscaping
4 134
Great start to the season
jcurr33
Yesterday 08:49 PM
Today 01:50 PM
by Steve
2 61
uploading video on here?
holymoly
05-24-2015 08:13 AM
Today 01:37 PM
by Steve
2 72
new here ! need help
pgrace
05-23-2015 11:29 PM
Today 01:35 PM
by Steve
1 79
Equipment dealers
mattthelawnguy
05-21-2015 04:33 PM
Today 01:32 PM
by Steve
4 122
What's your next...
Steve
05-15-2015 11:54 AM
Today 01:25 PM
by Steve
14 367
problems with a customer
LawnCareMan280
05-19-2015 06:28 PM
Today 01:22 PM
by Steve
5 188
What a JERK!
Chilehead
05-06-2015 08:13 AM
Yesterday 11:15 PM
by luckylogger
12 692
More Rain or Less?
Steve
05-20-2015 12:06 PM
05-24-2015 04:37 PM
by SGL1
12 260
Irrigation
pboy8634
02-21-2010 12:46 PM
05-22-2015 10:05 PM
by biglee
25 8,441
Beginner Mistakes:...
Steve
01-31-2007 11:45 AM
05-22-2015 09:58 PM
by biglee
37 9,159
Peace garden ideas
SGL1
05-13-2015 03:15 PM
05-21-2015 07:51 PM
by avetslawncare
16 509
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
05-20-2015 09:18 PM
by ExtremeLawncareServices
84 6,817
Total yard rehab
SGL1
04-23-2015 03:59 PM
05-19-2015 08:22 PM
by SGL1
15 811
Say Hello !!!
Steve
03-19-2007 11:18 AM
05-19-2015 04:12 PM
by NinaMarie86
1,223 389,803
New Lawn Service
carmelitaslawnservice
05-19-2015 10:02 AM
05-19-2015 02:51 PM
by Steve
1 115
Landscaper Jailed After...
SGL1
05-18-2015 08:15 AM
05-19-2015 02:37 PM
by Steve
5 216
Pictures of commercial...
avetslawncare
04-01-2015 09:47 PM
05-19-2015 02:29 PM
by Steve
38 2,014
feeling like im being...
Bradcook21
05-17-2015 07:33 AM
05-19-2015 02:11 PM
by Steve
6 225
good news yesterday
Bradcook21
05-17-2015 07:08 AM
05-19-2015 06:16 AM
by Bradcook21
3 158
ignition coil
jasonw
05-12-2015 05:31 PM
05-18-2015 12:07 PM
by Steve
3 274
Anyone need help? I have...
biglee
05-06-2015 12:22 PM
05-18-2015 12:06 PM
by Steve
13 698
Big (to me) mulch job
tl757
04-23-2015 05:32 PM
05-15-2015 08:46 PM
by biglee
22 1,498
big dog mowers?
Bradcook21
05-13-2015 04:03 PM
05-14-2015 10:55 AM
by Steve
4 296
Small HOA Bid
lxarth
05-06-2015 10:37 PM
05-13-2015 11:55 AM
by Steve
9 522
New company in Michigan
SEM
04-24-2015 09:27 PM
05-13-2015 11:51 AM
by Steve
11 653
Fired for refusing to...
Mr. Mow
05-09-2015 06:15 AM
05-12-2015 01:36 PM
by Steve
6 516
I have ZERO confidence...
Just for Cuts
05-01-2015 04:24 PM
05-12-2015 03:53 AM
by jrs.landscaping
31 1,114
landscape insurance
clarkslawn
03-30-2015 10:14 PM
05-11-2015 01:15 PM
by Steve
6 1,034
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
05-10-2015 07:50 PM
by ExtremeLawncareServices
9 1,069
Bought my first STIHL...
Mr. Mow
05-09-2015 06:29 AM
05-10-2015 08:36 AM
by Mr. Mow
9 425
advice wanted please and...
CHenricks
05-07-2015 08:40 PM
05-08-2015 04:20 PM
by CHenricks
7 442
Hello
SallyBorowicz
05-06-2015 11:14 AM
05-08-2015 02:21 PM
by Steve
3 351
Mower Advice
tl757
05-06-2015 02:31 PM
05-08-2015 01:45 PM
by Steve
6 478
Home today...Still...
biglee
05-06-2015 11:59 AM
05-07-2015 12:06 PM
by biglee
2 356
I'm Back With The Best...
aduttonater
02-21-2015 12:41 AM
05-07-2015 11:17 AM
by Steve
79 3,997
color fliers?
holymoly
04-18-2015 02:32 PM
05-07-2015 10:57 AM
by Steve
16 1,044
Looking good
mrsmichigan
05-06-2015 09:47 AM
05-07-2015 10:53 AM
by Steve
1 299
What are your biggest...
Steve
05-05-2015 01:24 PM
05-07-2015 10:52 AM
by Steve
2 351
is craiglist good to...
JBENI
04-16-2015 11:11 AM
05-06-2015 07:15 PM
by TheYardGuy
12 1,128
Go daddy web site and...
jcurr33
05-04-2015 06:00 PM
05-05-2015 11:57 AM
by Steve
2 379
How busy are you now?
Steve
05-04-2015 01:10 PM
05-05-2015 11:47 AM
by Steve
4 413
mowfinder
scaypa
04-27-2015 05:44 PM
05-04-2015 01:14 PM
by Steve
1 439
Latest video, Facebook...
Sprinkler Buddy
05-01-2015 06:54 AM
05-04-2015 01:09 PM
by Steve
3 411
weed
avetslawncare
04-16-2015 07:56 PM
05-01-2015 11:38 AM
by Steve
8 822
so i need somehelp with...
dalvan0
04-28-2015 07:43 PM
04-30-2015 10:55 PM
by avetslawncare
3 720
Anyone have a Lawn Care...
nishirandall
04-28-2015 08:45 PM
04-30-2015 12:00 AM
by Steve
1 484
mowing pic
joshlawncare
04-25-2015 12:34 PM
04-29-2015 10:55 PM
by Steve
5 586
» Popular Tags
aerocore apartment bid apartment complex apartment lawn care estimate applying auger billy goat brushcutter blades blowout bush contract help curb appeal services deliquentaccounts ditches door hangers employee problems equipment rental estimate facebook flyers foreman free advertising google growing a lawn care business hiring how to husqvarna jobs john deere quik trac landscape landscape services landscaping training lawn lawn care lawn care busines plan managing a lawn care business marketing more customers business mr dave mulch new business per hour service pricing pto push versus ride running a business scag sell the vision shell small engine repair snow plowing square foot starting a lawn care business steep lawns swzt theft toro toro grand stand tractor auger trailer trailer mate pro tree trimmer rack up sell employee 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 08:22 PM.


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

All times are GMT -5. The time now is 08:22 PM.

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