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
  #11  
Old 02-08-2013, 12:22 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,982
Rep Power: 10
Steve has disabled reputation
Default

WOW!

Quote:
Found workers classified wrong, had to pay back taxes, interest, and penalties.
Was this a wrong classification w2 vs 10-99 or was this with the job code that effects the workman's comp fees?
__________________
- 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

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


  #12  
Old 02-08-2013, 01:50 PM
wandfsmall wandfsmall is offline
Senior Member
 
Join Date: Sep 2010
Posts: 925
Rep Power: 5
wandfsmall is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
I am also from IL and luckly Obama Care does not directly affect you until you get over 20 employees. From what I see from my commercial cutters that have or have had employees they make more without them.

Quote:
Originally Posted by RoughCut View Post
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.
__________________
I am the owner of www.AllOutdoorParts.com an online mower parts distributor. I am also a Briggs Master Service Technician and Expert Certified Mechanic for Kohler. If my posts helps you please like my facebook page at www.facebook.com/alloutdoorparts
Reply With Quote
  #13  
Old 02-08-2013, 02:49 PM
thom thom is offline
Senior Member
 
Join Date: Oct 2011
Location: Northern Ohio
Posts: 117
Rep Power: 4
thom is on a distinguished road
Default

Quote:
Originally Posted by greenscaper123 View Post
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.
There isn't anything wrong with using cash to pay payroll.
But good record keeping is a must.His employees should
sign a document for the wages they receive, which
will also show all deductions.
Reply With Quote
  #14  
Old 02-08-2013, 03:14 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

This was a 1099 issue. IRS classified them as employees.Now I keep detailsd records. Everything is backed by paper. Every dollar is accounted for.The last 10 years I have had no problems with the IRS.Every dollar that comes in , I pay tax on. If I use cash for equipment, I loan money from myself and pay myself intrest. Sounds dumb, but it works out real will for me. Plan is when I retire, will sell on contract to keep my monthly income.
Reply With Quote
  #15  
Old 02-08-2013, 08:39 PM
jsslawncare jsslawncare is offline
Member
 
Join Date: Jan 2011
Posts: 42
Rep Power: 5
jsslawncare is on a distinguished road
Default

No, he is saving money by not paying payroll taxes. But I'm no accountant.
Reply With Quote
  #16  
Old 02-11-2013, 12:13 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,982
Rep Power: 10
Steve has disabled reputation
Default

Quote:
This was a 1099 issue. IRS classified them as employees.Now I keep detailsd records. Everything is backed by paper. Every dollar is accounted for.
What advice do you have for those just getting started, in order to avoid as many of these problems as possible?
__________________
- 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
  #17  
Old 02-12-2013, 04:37 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

Hire an accountant at first. Have them show you how to set up payroll, and book keeping. Then buy a accounting program (software) and do your own if you're comfortable with it. Most accountants have software ,so it just plugging in numbers. With todays computers and software it is easy to keep your own books and do your own taxes. As a small business owner it is easy to get on a roller coaster with 1 year paying alot of taxes and then the next getting a refund. When you know every month what your profits or loss are, then you can adjust your expenses, to stop the roller coaster ride. I started doing my own book work and taxes. I know where I am every 2 weeks, so I have no surprises at the end of the year. I am no accountant , but could be now, after all I went through.
Reply With Quote
  #18  
Old 03-20-2013, 11:56 PM
tk4454 tk4454 is offline
Member
 
Join Date: Mar 2013
Posts: 62
Rep Power: 2
tk4454 is on a distinguished road
Default

I have one guy that helps me, I plan to pay taxes this year, i pay him cash, cant i technically hire him as a sub contractor, and he does his own taxes, just to cover my own ***, but pay taxes on the money i make?
Reply With Quote
  #19  
Old 03-21-2013, 06:29 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

The IRS has a detailed list that classifies sub contractors. If you stay within the guide lines,yes you can use them as subcontractors. I know that they have to have their own equipment and do work for other customers, just to name a few. Ask an accountant they can give the list. Or maybe the IRS website.
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
I'm Back With The Best...
aduttonater
02-21-2015 01:41 AM
Today 07:32 PM
by jrs.landscaping
13 568
New Website
brian'slawncare
Today 06:35 PM
Today 06:35 PM
by brian'slawncare
0 8
Online Estimator
acrajchel
Today 05:58 PM
Today 05:58 PM
by acrajchel
0 16
Ugliest lawn contest
Steve
02-23-2015 04:17 PM
Today 04:18 PM
by SGL1
3 296
How to sell annual...
GroPro
02-17-2015 12:31 PM
Today 01:46 PM
by Chilehead
8 578
stubbon people
Bradcook21
02-16-2015 04:25 PM
Today 12:38 PM
by Mr. Mow
42 1,325
Opinions on truck wrap
Truro
Yesterday 04:21 PM
Yesterday 11:03 PM
by SC93
3 109
rock salt
Bradcook21
02-24-2015 11:17 AM
Yesterday 08:46 AM
by jrs.landscaping
23 510
price for snow clearing?
Bradcook21
02-25-2015 09:11 PM
02-27-2015 08:54 PM
by Bradcook21
5 204
My Newborn son
avetslawncare
02-27-2015 01:07 PM
02-27-2015 02:18 PM
by Steve
2 71
Facebook
element009
03-23-2011 09:36 AM
02-27-2015 11:37 AM
by ExtremeLawncareServices
52 11,824
Blade sharpener
Just for Cuts
07-04-2014 01:31 PM
02-26-2015 03:43 PM
by Mr. Mow
15 1,755
viking cyclon.
uppercut
01-29-2015 09:12 PM
02-26-2015 02:54 PM
by Steve
5 517
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 01:06 AM
02-26-2015 02:41 PM
by Steve
1 124
Another website update
Chilehead
02-26-2015 11:24 AM
02-26-2015 12:46 PM
by Just for Cuts
3 118
tips on creating a...
BLAZIER-1991
01-08-2015 07:22 PM
02-26-2015 02:44 AM
by ExtremeLawncareServices
5 727
New Lawn Care Service...
rlclawncare123
02-26-2015 12:49 AM
02-26-2015 02:24 AM
by ExtremeLawncareServices
1 129
Finally!
SGL1
02-22-2015 09:46 PM
02-25-2015 10:15 PM
by SGL1
13 467
leaf removal.. mulching...
facework84
08-05-2011 03:26 PM
02-25-2015 08:07 PM
by Steve
5 2,805
How many customers?
SC93
02-25-2015 12:40 AM
02-25-2015 04:59 PM
by SC93
5 245
Irrigation...
charlieallen
02-24-2015 01:16 PM
02-25-2015 02:58 PM
by Steve
6 237
use a small business...
BLAZIER-1991
12-25-2014 12:21 AM
02-25-2015 12:46 AM
by SC93
33 2,840
honest opinion please
uppercut
02-17-2015 02:30 AM
02-24-2015 07:12 PM
by homey
10 664
2nd year advice anyone
Bradcook21
02-18-2015 07:00 PM
02-24-2015 05:15 PM
by Bradcook21
14 645
need help
lawnexpers115
02-23-2015 05:36 PM
02-24-2015 02:49 PM
by Steve
3 280
Hello People
nativikee
02-23-2015 07:17 PM
02-24-2015 02:43 PM
by Steve
4 280
New member
qua ke zik 001
02-23-2015 11:24 AM
02-23-2015 03:40 PM
by Steve
1 238
New Video
Sprinkler Buddy
02-22-2015 09:18 PM
02-23-2015 03:19 PM
by Sprinkler Buddy
2 262
need help with SCAG...
apmAkron
02-23-2015 09:14 AM
02-23-2015 01:57 PM
by apmAkron
3 261
which degrees would be...
BLAZIER-1991
02-20-2015 04:46 PM
02-23-2015 01:47 PM
by Steve
9 423
Trouble logging in
avetslawncare
02-21-2015 02:06 PM
02-23-2015 01:44 PM
by Steve
1 547
John Deere Quik Track...
acrajchel
02-20-2015 03:12 PM
02-23-2015 01:40 PM
by Steve
1 291
Trimming and...
joshlawncare
02-15-2015 02:04 PM
02-22-2015 09:48 PM
by SGL1
5 624
where can i post this
zippy-phil
02-17-2015 07:58 PM
02-20-2015 02:02 PM
by Steve
7 511
These are the days on...
ExtremeLawncareServices
01-11-2015 11:41 AM
02-19-2015 04:43 PM
by ExtremeLawncareServices
29 2,673
Thumbs up or down?
lawnman1959
02-18-2015 11:40 AM
02-19-2015 01:22 PM
by Chilehead
3 425
Am I growing too fast?
Mattcrump
08-04-2011 11:54 PM
02-19-2015 12:34 PM
by Steve
11 5,220
Say Hello !!!
Steve
03-19-2007 12:18 PM
02-19-2015 12:31 PM
by Steve
1,215 372,181
How to obtain more...
winkie61
02-17-2015 08:31 AM
02-19-2015 12:29 PM
by Steve
3 537
Mowing 2 acres
Bradcook21
01-05-2015 03:13 PM
02-19-2015 12:23 PM
by Steve
16 1,483
FREE Custom Website...
breadcrumb
01-31-2015 10:58 PM
02-18-2015 01:32 PM
by Steve
5 1,125
Taking a step back
Billy Goat
02-16-2015 07:37 AM
02-18-2015 01:17 PM
by Chilehead
9 605
Employees
stevej
02-17-2015 05:25 PM
02-18-2015 12:47 PM
by Mr. Mow
1 416
Landscapers from hell!!
Chilehead
01-29-2015 03:55 PM
02-17-2015 07:48 PM
by ExtremeLawncareServices
9 1,031
Cannot access your Itune...
winkie61
02-17-2015 10:00 AM
02-17-2015 03:26 PM
by Steve
1 366
Advertising on internet...
Sprinkler Buddy
02-13-2015 01:22 PM
02-17-2015 01:00 PM
by Steve
9 689
new to this forum
NIP'N'TUK
02-14-2015 07:54 PM
02-16-2015 10:03 PM
by Steve
2 502
Advice on bidding 20...
sleepydunn
02-15-2015 07:38 PM
02-16-2015 09:59 PM
by Steve
4 626
New to me mower
xandrew245x
04-27-2014 08:02 PM
02-16-2015 09:48 PM
by Steve
8 1,408
mower blades
tlf59263
02-09-2015 12:36 PM
02-16-2015 05:16 PM
by Just for Cuts
8 836
» Popular Tags
4x4 ad landscaping aerocore apartment bid apartment lawn care estimate applying auger billy goat brushcutter blades bush contract help deliquentaccounts design ditches door hangers employee problems equipment rental estimate ferris foreman four wheel drive free advertising google gopherhaul gravely growing a lawn care business how to husqvarna introduction jobs john deere quik trac landscape services lawn lawn care lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo lawn mowing managing a lawn care business marketing marketing secrets mulch new mower per hour service podcast pricing pto secrets to landscaping seo shell snow plowing square foot starting a lawn care business steep lawns theft toro toro grand stand trailer tree trimmer rack up sell employee web design website design winterization wood
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 07:33 PM.


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

All times are GMT -5. The time now is 07:33 PM.

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