Just thought it was shady when they gave him cash the first day. He thinks its great, they promise him lots of money..whats your opinion?
2007-11-17 13:35:45 · 4 answers · asked by Anonymous in Business & Finance ➔ Small Business
Just thought it was shady....had him sign a W-9.....promise him lots of money...they get by cheap dont they when they dont have to pay into social security or insurance? anymore here or endeavor advertising agency? thank you for your help.
2007-11-18 01:32:32 · update #1
sorry I wrote that wrong...anyone hear of endeavor advertising agency?
2007-11-18 01:33:26 · update #2
If you are in the UK, its legal to be paid in cash, but he must also be given a pay slip to show the tax and NIC deducted. Its the employers responsibility to pay the tax and NIC over to HMRC, not your son.
If they start suggesting that he is self employed, then do not accept that situation without getting a ruling from HMRC. Accepting that status will leave him with no employment rights, no holiday pay, sick pay, etc. Employers who try that trick are often poor in other areas and may not carry insurance.
2007-11-17 17:42:36 · answer #1 · answered by fengirl2 7 · 0⤊ 0⤋
Yes it is perfectly legal. You can be paid cash with no problem. If his employers hold (or have requested) his P45, or made him sign a P46, then they need to pay his tax and insurance, but they can still pay him in cash.
If not, then he may be considered self-employed, in which case he needs to contact the national insurance and pay self employed contributions, and get himself an accountant and make a self assessment tax return.
Lots of people are paid cash in hand it is perfectly legal.
2007-11-17 13:41:02 · answer #2 · answered by Phil McCracken 5 · 1⤊ 0⤋
Paying in cash isn't illegal, but not keeping and providing proper records is, and not taking out taxes from employees is also illegal. And if your son doesn't report this as income and pay taxes on it, he is also breaking the law and can be subject to severe penalties.
If he is working as a contractor and not as an employee, then legally he must still report it on a tax return if he makes over $399 for the year, and if the company pays him over $600 for the year, they are required to give him a 1099 at the end of the year and report it to the IRS.
Yes, it does sound shady - and illegal.
2007-11-17 13:44:41 · answer #3 · answered by Judy 7 · 0⤊ 1⤋
It's legal if they also file a 1099 form and give him one too. If not, then there is a cash amount you can make without having to file. I don't remember what it is. But once that has been passed he has to file and claim his earnings I believe.
2007-11-17 13:41:32 · answer #4 · answered by Robert G 2 · 0⤊ 2⤋