2007-06-16 02:52:00 · 13 answers · asked by lobellositalian 1 in Business & Finance ➔ Taxes ➔ United States
Absolutely.
2007-06-16 02:55:19 · answer #1 · answered by StayThirstyMyFriends 6 · 0⤊ 0⤋
Per the IRS Paying Employees in Cash. Paying employees in whole or partially in cash is a common method of evading income and employment taxes. There is nothing wrong with compensating an employee in cash, but employment taxes are owed regardless of how the employees are paid. And the IRS will build its case using all available information even if there are no payroll records or checks. So, you can pay in cash, you just want to calculate and deduct taxes as you normally would. However, paying in cash is like a red flag and it may cause you to be audited. And, even if you have nothing to hide, you do not want that! Also, you may want to check with your state's Dept of Labor and/or Tax Commision to make sure there is no state law against paying in cash.
2016-05-17 07:51:59 · answer #2 · answered by ? 3 · 0⤊ 0⤋
There is nothing unregulatory about paying an employee in cash. How ever you must identify for taxes purposes and document your proceedings.
2007-06-16 02:56:11 · answer #3 · answered by Lunnar 3 · 1⤊ 0⤋
Yes you can pay any body cash. That's why it says " legal tender for all debts public and private". You can pay your Federal Income Tax with cash. If you can prove that any body you owe money to would not accept cash as payment, then you have no more debt with that party for that particular debt.
2007-06-16 03:03:47 · answer #4 · answered by nanna 5 · 0⤊ 0⤋
You can pay an employee with anything as long as an equitable amount of taxes are paid. There is no legal way to escape it!
2007-06-16 03:01:50 · answer #5 · answered by Igor Jivatofski 5 · 1⤊ 0⤋
Sure, as long as you withhold the proper taxes and remit them to the proper government authority (feds and state), pay the proper employer taxes, keep good records, and issue the proper paperwork at the end of the year. It's probably better practice though to pay by check.
2007-06-16 03:40:01 · answer #6 · answered by Judy 7 · 4⤊ 0⤋
Yes. And be sure to have the employee sign for it. Otherwise, you have the same requirements as if you ahad paid by check.
2007-06-18 16:30:50 · answer #7 · answered by Hank Roitman, EA 4 · 0⤊ 0⤋
Yes you can, it's not good for your business, unless you making cash and you paying cash without showing anything on income tax.
2007-06-16 02:59:35 · answer #8 · answered by reality 6 · 0⤊ 2⤋
yes just keep track of paying in ccash in a book or a computer program for if they eaaarn alot over the year they will need a statment from you at tax time and they will have to pay taxex on it at the end of the year. when i babysat i had to have a written sstatment of what i earned. i kept track myself.
2007-06-16 02:57:30 · answer #9 · answered by Anonymous · 1⤊ 1⤋
up to how much employee dose not have to pay for tax.
2014-07-08 19:46:29 · answer #10 · answered by Marria 1 · 0⤊ 0⤋