Author Topic: Question for Business Owners (Read 665 times)

DWTim · « **on:** May 14, 2006, 06:05:56 AM »

I have a question for you guys who own, or have owned businesses. This is in regards to illegal immigrants working "under the table". Now I have seen businesses here and there pay one or two people (out of a larger workforce) under the table. These were usually kids who were "too young" to work, but were responsible enough to take a job to put away some money. Doing this obviously requires some cooking of the books, which is something I was not willing to do.

OK, here's where I'm going with this: The standard form for checking out someone's credentials is a W-9. I'm required to file one. Every employer I've worked for, and every business (small to large) that used my company required me to do a W-9. Schools and colleges I've done work for made me do a W-9 before they paid me. Whenever one of these employers is asked about his mostly-illegal workforce, the boiler-plate response is, "how am I supposed to know?" Uh... By submitting a W-9. If they employee has a fake SSN, the IRS can tell you.

Not once have I heard this simple, and obvious answer to the question. What's going on over on the left coast? What's going on in the IRS? How can someone pay a million dollar payroll under the table and not get caught? What does the employer put on his 1040 for his occupation, drug dealer?

stimpylu32 · « **Reply #1 on:** May 14, 2006, 06:40:40 AM »

The way most do it , is to list them as sub-contract help on the books , that way it is the employee's problem to pay taxes and the employer can cover his own butt .

It also releaves the employer of having to pay workman's comp and other bennies that state and fed law requires .

briarpatch · « **Reply #2 on:** May 14, 2006, 07:22:29 AM »

even listed as a subcontractor and presented a 1099 to satisfy the feds, does not releive the contractor/ owner from the responsibility of workmans comp. It is the responsibility of the general and or owner to make sure they have comp and to have comp they must meet certain criteria, such as incorporation ect.

WmRoy · « **Reply #3 on:** May 14, 2006, 09:12:06 AM »

Personally, I've never bought into the story that companies are paying folks off the record.......... to do that means you won't be able to deduct their wages on your tax returns. I have hired my niece, nephew, my kids and some of their friends to do odd jobs and paid them for their help in cash. These funds have always come out of my own pocket and because they've never amount to more than a couple hundred or so I've just ate the expense myself...... in the end I just figured it helped me personally and helped them to have alittle extra spending cash.

I have a hard time believing that any employer can afford to pay out thousands much less millions in wages that they in turn cannot deduct from their income taxes. :roll:

stimpylu32 · « **Reply #4 on:** May 14, 2006, 10:45:45 AM »

Briarpatch

We had a case here in Lima 3 years ago , on a state funded school project were a sub contractor that was hired to haul the spoil dirt from the job sites did not even have Ins. or proper maint. on the trucks, and the drivers did not even have CDL's .

The only way they found out was when a driver lost control of a truck and killed 2 people .this happened 2 years into the project .

Had this not happened , no one would have never known .

briarpatch · « **Reply #5 on:** May 14, 2006, 01:29:48 PM »

That is true with a lot of contractors now Stimpylu. However the injured can go back on the owner and receive comp. The owner can go back on the contractor for payment. Someone will pay comp to the injured even if it is the state who will go to the owner. This is Florida I am speaking of but I dont think many states are much different. You are right this happens all the time.

WmRoy · « **Reply #6 on:** May 14, 2006, 06:23:34 PM »

Any Contractor Stupid Enough to have non CDL drivers........... deserves to go to jail!! :evil:

stimpylu32 · « **Reply #7 on:** May 14, 2006, 11:01:06 PM »

WmRoy

You got that right !!

Echo4Lima · « **Reply #8 on:** May 30, 2006, 06:48:24 AM »

I've been a contractor since 1989. I have 2 non-negotiable requirements for workers.

1, no Highschool diploma, no work. Small contribution to society being somewhat educated.

2, no ILLEGALS no matter what the reason they are here.

I sub-contract everything! I AM NOT A TAX COLLECTER!! I DO NOT WORK FOR THE I R S !! Let the people do thier own taxes and the I R S can do the rest. I do not get paid by the govt for my time. In fact I EFFEN PAY THE GOVT FOR GIVING SOMEONE A JOB!! The is the dumbest thing in the tax codes there is. Payroll tax. I make my own job, I create a job for somebody else and I AM taxed for that!! Its STUPID!!

In case you dont know what I'm talking about concerning payroll tax, many people dont, they assume your refering to Social Sec., Medicare etc. Payroll tax works like this, at the end of every year, an employer adds up the ENTIRE payroll for that year, then pays a tax on that total out of HIS pocket for giving somebody a job! In effect, employers, "making all that money off thier employees", are penalized for giving someone a job.

I had 28 employees at one time. The insurance company, the Govt., State and Fed. a couple of the employees were the only ones making any money. I now carry only 3 full timers, 2 part timers and myself so I can make some money. Any more than that and it just costs too much to try to compete. Especially when some of the competion is illegal.