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, 03:58 PM
greenscaper123 greenscaper123 is offline
Member
 
Join Date: Oct 2012
Posts: 65
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, 04:12 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, 04:34 PM
Sprinkler Buddy's Avatar
Sprinkler Buddy Sprinkler Buddy is offline
Senior Member
 
Join Date: May 2011
Location: Florida
Posts: 718
Rep Power: 4
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, 04:57 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, 05:34 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, 05:46 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, 09:07 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 09:10 AM.
Reply With Quote
  #8  
Old 02-07-2013, 01:36 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 37,002
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, 01:39 PM
stevef1201 stevef1201 is offline
Senior Member
 
Join Date: Apr 2010
Location: Central Florida
Posts: 1,236
Rep Power: 6
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, 10:58 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 05:22 PM
Employees taking cash? Steve General Business Discussions 11 11-13-2007 03:02 PM
Paying More, 15% tiedeman Lawn Maintenance / Lawn Renovation 14 07-12-2007 09:30 PM
paying per job shortgut Gopher Software Support Archived Question & Answers - Read Only 3 03-13-2006 12:22 PM
How much are you paying? Gopher Tech General Business Discussions 2 11-04-2003 07:50 AM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Kawasaki Control Assembly
rsanchez1203
Yesterday 04:21 PM
Today 12:21 AM
by rsanchez1203
9 114
All NEW BRASS Black Rain...
BlackRain75
Yesterday 10:07 PM
Yesterday 10:07 PM
by BlackRain75
0 22
Opinions on truck wrap
Trupro
02-28-2015 04:21 PM
Yesterday 09:52 PM
by Trupro
12 270
Doug With Blades Of...
BladesofSteel
Yesterday 08:40 PM
Yesterday 08:40 PM
by BladesofSteel
0 25
Jesse with Curb Appeal...
CurbAppeal1
Yesterday 01:44 PM
Yesterday 06:48 PM
by CurbAppeal1
12 127
New guy from Columbia, SC
holymoly
Yesterday 05:27 PM
Yesterday 06:10 PM
by Steve
1 36
Diesel conversion?
Just for Cuts
03-02-2015 10:59 AM
Yesterday 06:08 PM
by Just for Cuts
4 106
stubbon people
Bradcook21
02-16-2015 04:25 PM
Yesterday 05:56 PM
by Steve
45 1,438
What's include in a bid?
ppl
03-02-2015 01:19 PM
Yesterday 05:53 PM
by Steve
9 195
New Website
brian'slawncare
03-01-2015 06:35 PM
Yesterday 05:48 PM
by Steve
8 160
How do YOU charge your...
Hard-Body lawn & garden
03-02-2015 09:28 PM
Yesterday 05:44 PM
by Steve
1 64
New Lawn Care Business
S&Z Lawncare
03-02-2015 04:13 PM
Yesterday 05:39 PM
by Steve
3 112
My Newborn son
avetslawncare
02-27-2015 01:07 PM
Yesterday 05:23 PM
by joshlawncare
7 163
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
Yesterday 02:50 PM
by ExtremeLawncareServices
14 2,037
rock salt
Bradcook21
02-24-2015 11:17 AM
Yesterday 01:26 PM
by jrs.landscaping
30 641
tips on creating a...
BLAZIER-1991
01-08-2015 07:22 PM
Yesterday 10:38 AM
by brian'slawncare
9 807
pros and cons on...
Wolf4dk
03-02-2015 12:26 AM
03-02-2015 10:14 PM
by ExtremeLawncareServices
6 140
price for snow clearing?
Bradcook21
02-25-2015 09:11 PM
03-02-2015 08:32 PM
by Bradcook21
7 281
Ugliest lawn contest
Steve
02-23-2015 04:17 PM
03-02-2015 04:57 PM
by Steve
5 373
Hi from the beautiful...
nwgirl
02-07-2015 06:01 AM
03-02-2015 04:45 PM
by Steve
5 661
Online Estimator
acrajchel
03-01-2015 05:58 PM
03-02-2015 03:50 PM
by Steve
3 119
How to obtain more...
winkie61
02-17-2015 08:31 AM
03-02-2015 11:05 AM
by nwgirl
4 599
I'm Back With The Best...
aduttonater
02-21-2015 01:41 AM
03-02-2015 10:44 AM
by ExtremeLawncareServices
16 683
How to sell annual...
GroPro
02-17-2015 12:31 PM
03-01-2015 01:46 PM
by Chilehead
8 631
Facebook
element009
03-23-2011 09:36 AM
02-27-2015 11:37 AM
by ExtremeLawncareServices
52 11,868
Blade sharpener
Just for Cuts
07-04-2014 01:31 PM
02-26-2015 03:43 PM
by Mr. Mow
15 1,796
viking cyclon.
uppercut
01-29-2015 09:12 PM
02-26-2015 02:54 PM
by Steve
5 548
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 01:06 AM
02-26-2015 02:41 PM
by Steve
1 150
Another website update
Chilehead
02-26-2015 11:24 AM
02-26-2015 12:46 PM
by Just for Cuts
3 143
New Lawn Care Service...
rlclawncare123
02-26-2015 12:49 AM
02-26-2015 02:24 AM
by ExtremeLawncareServices
1 169
Finally!
SGL1
02-22-2015 09:46 PM
02-25-2015 10:15 PM
by SGL1
13 502
leaf removal.. mulching...
facework84
08-05-2011 03:26 PM
02-25-2015 08:07 PM
by Steve
5 2,834
How many customers?
SC93
02-25-2015 12:40 AM
02-25-2015 04:59 PM
by SC93
5 277
Irrigation...
charlieallen
02-24-2015 01:16 PM
02-25-2015 02:58 PM
by Steve
6 266
use a small business...
BLAZIER-1991
12-25-2014 12:21 AM
02-25-2015 12:46 AM
by SC93
33 2,891
honest opinion please
uppercut
02-17-2015 02:30 AM
02-24-2015 07:12 PM
by homey
10 719
2nd year advice anyone
Bradcook21
02-18-2015 07:00 PM
02-24-2015 05:15 PM
by Bradcook21
14 693
need help
lawnexpers115
02-23-2015 05:36 PM
02-24-2015 02:49 PM
by Steve
3 309
Hello People
nativikee
02-23-2015 07:17 PM
02-24-2015 02:43 PM
by Steve
4 311
New member
qua ke zik 001
02-23-2015 11:24 AM
02-23-2015 03:40 PM
by Steve
1 261
New Video
Sprinkler Buddy
02-22-2015 09:18 PM
02-23-2015 03:19 PM
by Sprinkler Buddy
2 286
need help with SCAG...
apmAkron
02-23-2015 09:14 AM
02-23-2015 01:57 PM
by apmAkron
3 288
which degrees would be...
BLAZIER-1991
02-20-2015 04:46 PM
02-23-2015 01:47 PM
by Steve
9 456
Trouble logging in
avetslawncare
02-21-2015 02:06 PM
02-23-2015 01:44 PM
by Steve
1 690
John Deere Quik Track...
acrajchel
02-20-2015 03:12 PM
02-23-2015 01:40 PM
by Steve
1 324
Trimming and...
joshlawncare
02-15-2015 02:04 PM
02-22-2015 09:48 PM
by SGL1
5 661
where can i post this
zippy-phil
02-17-2015 07:58 PM
02-20-2015 02:02 PM
by Steve
7 538
These are the days on...
ExtremeLawncareServices
01-11-2015 11:41 AM
02-19-2015 04:43 PM
by ExtremeLawncareServices
29 2,715
Thumbs up or down?
lawnman1959
02-18-2015 11:40 AM
02-19-2015 01:22 PM
by Chilehead
3 456
Am I growing too fast?
Mattcrump
08-04-2011 11:54 PM
02-19-2015 12:34 PM
by Steve
11 5,256
» Popular Tags
2wd 4x4 ad landscaping aerocore apartment bid apartment lawn care estimate applying blowout bob villa bush commercial contract help curb appeal services deliquentaccounts demonstration ditches door hangers employee problems estimate facebook four wheel drive google gopherhaul gravely growing a lawn care business hardscapes how to hydraulic jobs john deere quik trac landscape services lawn lawn aeration lawn care lawn care busines plan lawn care business lawn care business podcast lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website lawn care website seo lawn mowing managing a lawn care business marketing marketing secrets mulch new mower ordinance patio install per hour service podcast scag v-ride search engine optimization seo shreaded snow plowing sq ft starting a lawn care business steep lawns theft toro tractor auger trailer mate pro up sell employee web design website wood wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 05:48 AM.


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

All times are GMT -5. The time now is 05:48 AM.

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