How long can you pay an employee under the table for?

viagrandad
viagrandad

How long can you pay an employee under the table for?

I recently hired someone and setting up the payroll and all that shit has turned out to be a major pain in the ass. Plus I think the guy is gonna last like 6 months tops. And I'd rather just avoid the taxes and avoid the potential unemployment claim. Is there any risk to just paying this guy cash for 6 months?

Google loves to give you page after page of scare tactics, "OMG don't do it, the IRS will crush your balls in a vice!"

AwesomeTucker
AwesomeTucker

NO DUDE DONT DO IT, THE GOV, THE NSA, THE FBI, THE EUROPOL AND INTERPOL, AND THE IRS... OH HOLY LORD, SAVE US FROM THE IRS, THEY ARE OMNIPOTENT, THEY ARE EVERYWHERE, THEY ARE THE ALL SEEING EYE, THEY WILL HUNT YOU DOWN SOONER THAN YOU THINK, OH PLEASE LORD SAVE US ALL FROM THE IRS.

ps. pay that guy under the table, no body is going to hear about shit, if everybody keep their mouth shut.

PurpleCharger
PurpleCharger

Nah just say something like you weren't sure if he was a permanent employee if anyone asks

Need_TLC
Need_TLC

If you're afraid of him claiming unemployment it's retarded to hire him off the books. What if he goes in to make that claim then they have some trouble figuring it out so he explains to them he was paid off the books for six months?

girlDog
girlDog

Can't you hire the guy as an independent contractor where he's responsible for FICA taxes and providing his own benefits?

Bidwell
Bidwell

Yes, but the guy won't do that, obviously.

LuckyDusty
LuckyDusty

I have been working under the table for a guy for almost a year I make about 5K a month we have no issues. Just make sure the guy is cool with it and understands and its not going to fuck you

BinaryMan
BinaryMan

I thought about it, but he really does not fit the 1099 category. He's a legit employee.

Here's the other issue. It's a 2 part problem:

The guy has been pretty mediocre from day one. He shows up and does help some, and he tries, but he def is not a fit. He's not the guy. But I need help for a little bit, bad or good, is better than no help, my small business is swamped right now.

So I'll be suprised if he still has a job with me in 6 weeks. I'm planning on firing him soon, barring a significant turn around in job performance. Then finding someone else.
He's been an employee for a month, I need him for a while longer before replacing him, so it seems silly to make him official. So it will likely be 3 months of work he'd be getting paid under the table.

New_Cliche
New_Cliche

unless you hire people who need to work and get money to feed their senpaitachi you are going to be dealing with dumbass 20 year olds with teen mindsets that are there to clock in, get paid, chill on their phone and leave.

Spamalot
Spamalot

IDK if people with senpaitachi are gonna work for me.

Pay is $14/hr

ZeroReborn
ZeroReborn

and its not going to fuck you
Until you lay him off and files for UI

Great plan nigger

BunnyJinx
BunnyJinx

I feel ya. Can't afford 24+ for a journeyman. Tired of 20-28 year-olds with no senpai doing the bear minimum.

Inmate
Inmate

Yeah I'm torn.

I don't blame a guy for not giving a fuck at the pay rate I'm paying.

I'm torn about all of it really...

On one hand: Work alone, not much stress, and make $60k - $70k year after year

On the other hand: Take on the employee struggle, build, accept the stress of it all, and quite possibly build a company that earns a small fortune.

Stupidasole
Stupidasole

Really depends on what industry you're in. If it's landscaping for example, nobody will give a fuck. But if you're an accountant or an office job, people might throw a fit over it

Deadlyinx
Deadlyinx

I'll work for you. I'm hard working. Hire me.

Sharpcharm
Sharpcharm

It's manual labor. Some fucking blue collar shit.

Where you live?

SniperWish
SniperWish

The UK.

Skullbone
Skullbone

employee making $14/hr
shows up, does his job
employer wonders why he isn't putting in his heart and soul into the job
kek, what did you expect for 14 an hour?

TurtleCat
TurtleCat

lose a few pounds then buddy.

Sir_Gallonhead
Sir_Gallonhead

this is now a tax evasion thread

how can i take money out of my company without paying tax?

takes2long
takes2long

I personally am the opposite and would love working for cash because I am collecting EI as it is. Working for cash means I'm not claiming it and thus it isnt deducted from my EI payments

hairygrape
hairygrape

Add extra "expenses" that don't actually exist and just pocket the cost of those "expenses"
my buddy works for a company and has his own farming business on the side that generated a "loss" of 9 grand so when income tax time came around he received a cheque for 9 grand lel

TreeEater
TreeEater

this

JunkTop
JunkTop

I didn't expect him to care as much as me, but he makes mistakes every single day, and gets tired easily. Most days never exceed 8hrs, and we take a 30 - 45 min lunch break every day.

I think what I'm asking is reasonable.

Fuzzy_Logic
Fuzzy_Logic

Yeah along what this guy said:

How should I write up this employee's wages come tax time?

New_Cliche
New_Cliche

You can do it legally up to like $600, I don't remember what you have to categorize it as, but it's great for doing one week trial periods when you're trying to find someone who's a good fit

Sharpcharm
Sharpcharm

As mentioned earlier in this thread, $14/hour is not going to get you an enthusiastic, motivated employee simply because this does not seem like a long term gig for them. And if they are paid under the table, there is no reason for the employee to think this is and commit.

That he is getting tired can be a result of your management technique/ conditions of work. If it is a physical job (you mention days are variable, you take lunches together), his morale may be slipping. If he gets yelled at for his mistakes, it slips more.

To get back to the original post, it sounds like this is the type of situation where if you were to nicely fire the guy after a while, he would just shrug his shoulders and move on, so you can pay him under the table without fear.

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