This is quite a story, but please, I need advice.
No rude answers please.
I work for a friend of the family at a small printing company. I get paid minimum, by the hour - cash, not check. So if it’s under the table, technically “I am not working.” I used to work as a graphic designer and be front desk assistant, now my boss wants to “expand his business” and have me be a sales associate. The job will entitle to go business to business to offer services they provide. I will no longer receive minimum pay and will no longer get paid by the hour; instead I will get paid by commission. Now, up to this point it sounds ok for me because I get to manage my work schedule. A week later he announced to me he will be giving me my own business cards, a new phone (company’s phone), and provide all the necessary equipment for the job. Later, he announced to me that he will need my social security number to have it on file. That’s when the tables turned for me. I am one of the many employees of his company who gets paid in cash. From what I assume, he does not report and or pay payroll taxes. So why would he want and ask for my SSN?? I asked a couple of questions and got the following answer: “You will be working under my name; therefore I need your SSN to make a contract stating everything we will be providing to you, your schedule, etc..” He said that in order for me not to give him my SSN, I would have to have a business license that allows me to sell products to other businesses and will pay me in check so he can deduct taxes. (but why would he offer to pay me by check if he does not pay any other employee by check?) With the contract made and signed, he states that he would continue to pay me cash unless I choose not to give him the information he requested. The contract will not be made by him, but by his lawyer.
This is all a big issue. I would like to have some sort of income coming in, and it seems like this would be an ideal opportunity without all of the complications.
What steps should I follow? Who can I speak to about this? I was thinking discussing this deal with a lawyer as well.. but I have not made that step.
I do not know what he might be capable of if I do give him this info. A friend said that I might end up filling out a 1099 G form for taxes which means I would have to pay a certain percentage off the amount I earned for that year.
What’s your opinion? In need of help asap
Getting paid Cash vs. with Check.. Need advice, Please Help!?
2010-01-21 6:39 am
回答 (1)
2010-01-21 6:53 am
✔ 最佳答案
sounds like you are in the states, and I live in canada, so I may not be able to help you 100%, but still would like to give you some of my thought.as far as I know, if your friend is paying you cash, then yes, he should not need your SSN #.
and even if he pay you as a contractor (which according to him a business license), then he should not need your SSN# neither. all he needs from you is your GST#, and yes then he would pay you by cheque, as it's not part of payroll, but more like paying a service.
and in opinion, if he is giving you business card, that means a lot of people will know you are working for him. then if you still get paid by cash (under the table), which means you will increase the chance of letting the government knows you are working "illegally", which could cause a lot of problem....
so what I sugguest is if you do want to take the sales position, then the best is to do it legally, which means to pay taxes.
and if you do want to pay less tax, then do go set up a business # and GST #, so you will consider as self employed, which I think you will pay less tax then as a regular employee.
anyway, I think talking to an accountant may help you, beside talking to a lawyer. as most accountant knows enough about income tax and business tax, which should be able to help you.
hope I did help a little bit.
good luck!
2016-02-26 5:13 pm
Besides helping him build credit, using credit cards and writing checks gives him records of important transactions. Getting paid in checks allows him to keep track for tax purposes as well as proving how much he was paid if there was ever a dispute about how much he received. Also, if he's paying bills in cash and not getting recepits, there's always the chance that someone might come after him for owing a debt, and he will have no proof he paid it. That could end up costing him. If he's written a check, he has proof it was paid, and it can be resolved easily. My parents were contacted by the electric company that their electricity was being shut off for non-payment. They had paid, and were able to produce the cashed check, proving that they didn't owe anything. The electric company had made a mistake and failed to record the payment in the system. Had they paid cash, they would have had no proof and would have had to pay again in order to keep their electricity on. And when it comes time for him to purchase a house, or buy a new car, he's going to need to be able to present a credit history that proves he can pay his bills and handle a credit card. I've seen someone get declined a cell phone account because he had no credit cards and no mortgage, everything he did was in cash. You're not going to be there forever to pay for things with your credit, and he'll need to be able to take over it himself. And the older you get, the harder it gets to establish credit. When you're first starting out, banks offer credit cards for people with no credit. Once you get older, they're less likely to give you a credit card, and if they do it's a very small limit. Better to get started now than 10 years from now.
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