cash or check

[James2011]

deleted........................................... ..............................................

[BMWHD3060]

I have one very good attendant who works for me over thee years and most customers like him. I paid him check so far, but he asked me to pay him cash only.
I am in dillemma...
I don't want to lose him, but by the same token, I don't want be in trouble too.
His wife has job and he also has other job too, so maybe the reason is they don't want to report tax for the mat job.
I even offered him 50% check and 50% cash, but he refused it.
What I am worring about is who know in the future and who knows ones mind...anything can happen and any human mind can be changed....friend now, enermy in the future....no one knows, except God....
so, if, hypothetically speaking, he will want to harm me in the future, this under-table payemnt could be trouble to me....right?
if you were me, can you let him go?

If he is pressing you after you offered him 50/50. Just let him go, it could always be trouble down the line. You tell him NO he might just stay, in this economy it might be hard to find work, & it shold be easy to find a replacement.

[Laundry_Mike]

After working 3 years for checks, it is strange that all of a sudden he needs to be paid in cash now? Did he give a reason why? Paying cash is not good for both you and him - too much risk.

[Adamski]

Hithere,

Just tell him that your policy is to follow the law and that means paying ALL employees by check. If he wants to break the law, that's his business but you're not going to help him break the law.

[BMWHD3060]

I asked on the phone the reason, but he refused to tell it on the phone....
so, even though he has some reason, I don't think I can accept whatever reason....

Maybe he has some type of "Debt" that is going to be Collected Soon from his Paycheck, Childsupport, Back Childsupport or a Judgement?
If it is any one of the above, & they come to you as an employer to collect & he is working for less, you might find yourself in some trouble. Now after hearing more of the story. Don't do it.

[Adamski]

...if he is really good guy and he doesn't have any intention to harm me, then what specific bad-things could be happen to me by doing under-table? supposing, only he and I know this)

Hithere,

It's really quite simple. One day, he gets mad at you and files a complaint with the state employment agency that you haven't paid him for all the hours he's worked (whether that's true or not). That agency sends you a request for copies of the guy's timecards, paychecks, etc. You cannot provide copies of paychecks so you have NO PROOF THAT YOU PAID HIM ANYTHING. They therefore take the guy's word for what you paid and what you didn't pay. They determine that you did not pay all that was owed him. They tell you to pay him triple the amount owed or they'll SHUT YOU DOWN. How do you like THIS story?

[bodman]

here is a little story sad but true. A business owner paid an employee cash under the table to clean a building at night for ten years . the under the table employee was injured by a tree falling on him in his back yard. While in the hospital one of his relatives thinks HEY HE HAS WORKED FOR TEN YEARS HE SHOULD QUALIFY FOR SOME KIND OF SOCIAL SECURITY BENEFITS. they file in behalf of the injured man and what happens , the G-men showed up one day at the employers home and demanded a check for like 75k on the spot OR TO JAIL HE WOULD GO lucky for him he had the funds available and was able to stay out of jail. TRUE STORY.

[Adamski]

Larry,
by the same way, that guy can not prove he worked for me, because there is no papers and I keep all timecard for his hours and he doesn't have any paper, so he has nothing to show agency, then who believe whom?
even though he complain that he didn't paid, then I would answer the agency that he did not work for me!

Hithere,

Of course you would say he doesn't work for you. What will you say when the employee describes his cleaning duties in detail. He would describe his work schedule too. Maybe he would even know the names of several customers and what day each generally comes in. Now he's starting to become believable even though he has no paper proof that he works for you.

[Brett]

Hithere, by your posts you already know the answer. You're right, check only!!! Everything done legal. I know that losing a employee is always a pain and sometimes you go through 2 or 3 more till one "sticks" that you like. Follow your gut. Check please!! Brett

[Duane]

Hithere,

This is simple. It is illegal and can cost you your freedom or your business. If you are comfortable with that then go ahead and pay under the table. And you might as well keep posting on public forums that you intend to break the law, the IRS loves people who admit they are breaking the law.

Or you can think about it like this.... If your store has a cash flow of $50k per year and you pay under the table $20k per year for payroll, you will not be able to deduct the $20k so YOU will be paying personal taxes on the $50k per year. If you have a normal payroll and deduct the payroll YOU will only need to pay personal taxes on $30k per year. You can pay the full amount of taxes, or you can have your legal employees pay their share of taxes.

AND in the future if you decide to sell the store, with proper accounting you will be able to get a better price for your store.

For most of us on this forum this isn't even an issue. Pay him legally and pay your taxes. If he doesn't want to work, then get someone else who is willing to work. Or maybe if he is worth it, offer him a small raise.

Duane.

[Duane]

You are his employer and the collection and payment of taxes is your liability.

Does he want paid under the table (no taxes), or does he just want his payment in cash instead of a check?

Duane.

[Adamski]

Larry, then if I get his sign everweek when I give him cash that he received $xxxx amount of cash from Mr.xxxx for the work done from xxx ~ xxx, and there is no left over $$?? this ducument doesn't matter?

Hithere,

Well, if you have him sign those weekly payroll documents then you better hope he never gets mad at you and calls the IRS and files a complaint that you never withheld payroll taxes like you are required to. I wouldn't want to be in YOUR shoes when he calls that IRS regional office.

[STOUT]

Larry,
by the same way, that guy can not prove he worked for me, because there is no papers and I keep all timecard for his hours and he doesn't have any paper, so he has nothing to show agency, then who believe whom?
even though he complain that he didn't paid, then I would answer the agency that he did not work for me!

hithere;
So you are willing to lie if confronted?