Electrician calls me because he needs a hand
- Thread starter zappy
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Cavie
Senior Member
- Location
- SW Florida
Taxes, workmans comp, liabilty, insurance, etc, etc..........however, my money's on the fact that 1/2 this forum has done it at one time or another.
Howard Burger
Senior Member
- Location
- N of Anchrage, AK
additional considerations
additional considerations
So (A) you take the money, pay the taxes, and who cares what he does?
But (B) what if you get hurt helping him, who's insurance pays? And would workman's comp. deny a claim? Or what if the client goes to court for whatever reason, are you suddenly a sub of the primary or a co-primary?
Bottom line: Helping a guy out for free, sort of you-scratch-mine deal is one thing, working for money is a whole different kettle of fish. Plus I'm feeling pessamistic tonight.
additional considerations
So (A) you take the money, pay the taxes, and who cares what he does?
But (B) what if you get hurt helping him, who's insurance pays? And would workman's comp. deny a claim? Or what if the client goes to court for whatever reason, are you suddenly a sub of the primary or a co-primary?
Bottom line: Helping a guy out for free, sort of you-scratch-mine deal is one thing, working for money is a whole different kettle of fish. Plus I'm feeling pessamistic tonight.
growler
Senior Member
- Location
- Atlanta,GA
Does this guy want to hire you as an individual or as a contractor? You can work part time for anyone that you want to.
If I were just working for this guy I would want some sort of paperwork showing that I was a temporary employee.
If I was subbing work from him I would want a normal contract and getting paid under the table would not help any. You will have to cover yourself in this case so it's not cheaper.
I would be carefull in dealing with this company. The first thing I would check is to make sure they are licensed and insured.
tryinghard
Senior Member
- Location
- California
When I was self-employed I would always answer "yes I love side jobs", of course that’s all a self-employed does 
. As far as under the table those who ask want you to not claim this income. If you concede I believe you can still claim injury against them if hurt on the job, but you would have to sue them and it shouldn't be too hard to prove they hired you. When we don't claim work (1099) we are not contributing to our own social security account, granted we may have reached the capacity but we may not have.
The person asking for this does not want to contribute taxes or contribute to society - maybe they should just do the work themselves? There are many legal ways to gain tax benefits those who ask if you will work under the table are not good businessmen this should be a great indicator to walk away - just walk away.
. As far as under the table those who ask want you to not claim this income. If you concede I believe you can still claim injury against them if hurt on the job, but you would have to sue them and it shouldn't be too hard to prove they hired you. When we don't claim work (1099) we are not contributing to our own social security account, granted we may have reached the capacity but we may not have.The person asking for this does not want to contribute taxes or contribute to society - maybe they should just do the work themselves? There are many legal ways to gain tax benefits those who ask if you will work under the table are not good businessmen this should be a great indicator to walk away - just walk away.
The best is the guy asks you to work under the table and you say sure! You are going to put cash in your pocket, no taxes it's a win for you! The he sends you a 1099 next January
I doubt he's gonna file his 2011 tax return this year.
laketime
Senior Member
How do you 'not pay taxes' on money made in 2011?..... You wait until 2012 to fill out your 2011 return! You'll need to wait until Feb. 1, 2012 anyway to file. By then, you should have all your 1099s in-hand. Only then can you 'not pay taxes' on the money made in 2011 by not claiming the income.
I still can't comprehend why everyone waits until Jan. 29th or 30th to mail them out. Computers these days can spit 'em out as fast as you can stuff paper into the printers.
laketime
Senior Member
Yeah I understand how the tax system works professor. I was referring to the practice of people trying to negotiate your price down by saying it will be "under the table". Some contractors will lower their price thinking they are not going to have to pay tax on it. The next January they get hit with a 1099 they were not expecting.
ptonsparky
Tom
- Occupation
- EC - retired
I get a 1099 for farm rental income with nothing but my name and an incorrect address.
Then you aren't much of a contractor if you lower your price just because you don't think you have to pay taxes on it.
laketime
Senior Member
I agree 100% but during these times people do crazy stuff. Have a local "contractor" that took a job from another contractor in a similar way. He told the homeowner "you buy all the material and just pay me $18/hr and I will wire your house." The homeowner went for it and a reputable contractor lost the job.
tryinghard
Senior Member
- Location
- California
This is a "labor only" agreement (could be a contract), and I'm sure you know this but taxes will still be owed on the income....a local "contractor" that took a job from another contractor in a similar way. He told the homeowner "you buy all the material and just pay me $18/hr and I will wire your house." The homeowner went for it and a reputable contractor lost the job.
ptonsparky
Tom
- Occupation
- EC - retired
growler
Senior Member
- Location
- Atlanta,GA
He told the homeowner "you buy all the material and just pay me $18/hr and I will wire your house." The homeowner went for it and a reputable contractor lost the job.
Sure taxes are owed on this income but will taxes actually be paid? I think probably not. I seriously doubt if this guy is working as a company ( $18 an hour ) so he will be paid cash or check as an individual. There will be no tax deduction for the homeowner so no record of the transaction or even a need for a 1099 form.
If this person is not dumb enough to deposit the money in his personal account then there really is no record of this income.
The black market economy of un-taxable income is larger than most people would believe in this country.
You gain nothing, could lose everything.
You gain nothing, could lose everything.
I look at it this way.
An offer to get paid under the table is ALWAYS combined with will you work for a lower price.
If you lower your price then what have you gained? The amount you lower your prices by will be just about what you would have paid in taxes or fees. The ending result is, you net about the same $$, but now have to be looking over your shoulder for the tax man, and are risking troubles because no protections are in place, insurance etc. While at the same time the customer has paid less, yet if any large $$ problems happen like fire or lawsuit, he'll drag you into it anyway. I've seen it happen.
RAW
You gain nothing, could lose everything.
I look at it this way.
An offer to get paid under the table is ALWAYS combined with will you work for a lower price.
If you lower your price then what have you gained? The amount you lower your prices by will be just about what you would have paid in taxes or fees. The ending result is, you net about the same $$, but now have to be looking over your shoulder for the tax man, and are risking troubles because no protections are in place, insurance etc. While at the same time the customer has paid less, yet if any large $$ problems happen like fire or lawsuit, he'll drag you into it anyway. I've seen it happen.
RAW
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