I Got Turned In To Work Comp People For "paying Under Table"

 
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Old 03-04-2018, 06:33 PM   #1
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I Got Turned In To Work Comp People For "paying Under Table"


I have 10 days to produce all my payroll,bank records etc for past 6 months. Im not very organized.Only been in business a 2 years. I keep hearing if I didnt have all my guys on payroll Im facing crazy amount of fines.Should I get a lawyer to help me get through this? A disgruntled former emplyee turned me in. This is going to be a learning experience. I hope I dont lose what Ive worked so hard for.
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Old 03-04-2018, 06:44 PM   #2
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Re: I Got Turned In To Work Comp People For "paying Under Table"


Are you paying people under the table?

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Old 03-04-2018, 06:46 PM   #3
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Re: I Got Turned In To Work Comp People For "paying Under Table"


Yes, you probably will need a lawyer. When I lived in Florida, one of my friends owned a cabling business and paid all his guys as subs. One of his guys fell off a ladder severely breaking his femur. The injured "sub" got a lawyer and not only did my buddy have to pay all his medical bills, they got audited by the state and had to pay close to $60k in back worker's comp premiums and taxes.
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Old 03-04-2018, 06:53 PM   #4
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Re: I Got Turned In To Work Comp People For "paying Under Table"


I was paying 1 guy cash because he said he had a worker comp exempt,
a few months later I found out he was lying and I fired him and he turned me in. Luckily no one has ever got hurt.I will have everyone on comp and payroll for now on.
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Old 03-04-2018, 06:56 PM   #5
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Re: I Got Turned In To Work Comp People For "paying Under Table"


It doesn't matter if someone got hurt or not. You can still get audited and if you are paying guys as subs and the state determines they are actually employees, you will still have to pay worker's comp premiums and taxes that should have been paid.
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Old 03-04-2018, 06:57 PM   #6
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Re: I Got Turned In To Work Comp People For "paying Under Table"


Im not familiar with the terminology, worker comp exempt?
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Old 03-04-2018, 07:00 PM   #7
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Re: I Got Turned In To Work Comp People For "paying Under Table"


Quote:
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Im not familiar with the terminology, worker comp exempt?
Some states allow owner's, sole proprietors and certain corporation officers to exempt themselves from worker's comp. In TN, you fill out a form and pay a small annual fee.
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Old 03-04-2018, 07:06 PM   #8
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Re: I Got Turned In To Work Comp People For "paying Under Table"


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Some states allow owner's, sole proprietors and certain corporation officers to exempt themselves from worker's comp. In TN, you fill out a form and pay a small annual fee.
so the worker was claiming to be a sub, but the OP didn't get the supporting documents needed, hopefully the rest of the payroll is in order
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Old 03-04-2018, 07:11 PM   #9
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Re: I Got Turned In To Work Comp People For "paying Under Table"


Yup
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Old 03-04-2018, 07:24 PM   #10
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Re: I Got Turned In To Work Comp People For "paying Under Table"


How long did the guy work for you?
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Old 03-04-2018, 08:16 PM   #11
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Re: I Got Turned In To Work Comp People For "paying Under Table"


About 2 months,
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Old 03-04-2018, 08:35 PM   #12
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Re: I Got Turned In To Work Comp People For "paying Under Table"


We had a situation where a guy that we were paying half cash and half on the payroll got hurt so he went after us for all the cash wages because he was trying to increase his workers comp payout.

If he is going to accuse you of paying cash you need to ask him if he claimed his “cash” income to the IRS?. If not he is going to have to claim the wages and pay the taxes

That solved our problem and it was dropped and we never heard about it again...And yes our attorney was involved in that process


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Old 03-04-2018, 08:45 PM   #13
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Re: I Got Turned In To Work Comp People For "paying Under Table"


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Originally Posted by Windycity View Post
We had a situation where a guy that we were paying half cash and half on the payroll got hurt so he went after us for all the cash wages because he was trying to increase his workers comp payout.

If he is going to accuse you of paying cash you need to ask him if he claimed his “cash” income to the IRS?. If not he is going to have to claim the wages and pay the taxes

That solved our problem and it was dropped and we never heard about it again...And yes our attorney was involved in that process


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That’s excellent representation on the attorneys part. Usually if you can make an employee see that they will suffer along side you by dropping a dime, they get really quiet really quick.

In the future OP; don’t be a dirtbag trying to save pennies. Penny smart and pound foolish is simply foolish.
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Old 03-04-2018, 08:56 PM   #14
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Re: I Got Turned In To Work Comp People For "paying Under Table"


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Originally Posted by WBailey1041 View Post
That’s excellent representation on the attorneys part. Usually if you can make an employee see that they will suffer along side you by dropping a dime, they get really quiet really quick.

In the future OP; don’t be a dirtbag trying to save pennies. Penny smart and pound foolish is simply foolish.


Yea businesses paying unreported cash is obviously illegal and also employees under reporting and lying on their tax filings also has consequences as well.

The sad part is the guy begged us to help him out and pay him some cash because his ex-wife took him to the cleaners when he got divorced because of his child support and alimony payments. In the end trying to be understanding cost us more than it was worth......never again


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Old 03-04-2018, 09:05 PM   #15
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Re: I Got Turned In To Work Comp People For "paying Under Table"


Quote:
Originally Posted by Paintlife View Post
I was paying 1 guy cash because he said he had a worker comp exempt,
a few months later I found out he was lying and I fired him and he turned me in. Luckily no one has ever got hurt.I will have everyone on comp and payroll for now on.
I think you're learning quick, it doesn't matter what he says, it matters what you verify that he represents and that falls on you...

If it's really only one guy for two months that's in question, and all your other payroll is in order (i.e. - withholding, filings, stubs, etc.), 6 months worth shouldn't take you too long to put together, but even so, if a lawyer can save you money and potential losses, at least meet with one that specializes in it so you can get a true understanding of where you stand...

Even if the initial consultation is not free, the few hundred to get an understanding of where you truly stand and what needs to be done will save you from spinning your wheels as opposed to getting on top of it, learning from it, and moving on...

It's a sucky class at the School of Hard Knocks but with enough attention paid with the right professor (lawyer), you won't have to repeat the class...
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Old 03-05-2018, 05:00 AM   #16
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Re: I Got Turned In To Work Comp People For "paying Under Table"


If you are a poor record keeper, or can't keep up with what is needed, consider using a payroll service that takes care of everything.

You will undoubtedly be paying back WC deductions, but since there was no claim, per say, you may be able to get a pass on this one, no harm, no real foul, but expect to be audited often for a few years.
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Old 03-05-2018, 04:57 PM   #17
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Re: I Got Turned In To Work Comp People For "paying Under Table"


Your state may be different. When you say you got turned in to work comp people. I assume you mean your insurance company?
Or is there a state agency for that?

For the most part, you are lucky. Yes you will get stuck with some back fees, but it could be so much worse.
A friend owned a computer repair company. He had one employee. He didn't have any work comp. The employee went out in the parking lot to smoke a cigarette. He broke his ankle, in the parking lot. My friend paid all of his medical bills and his full salary. When the employee came back to work, he got a lawyer and sued his boss.
Now, the employee has his own computer repair business, 2 doors down from the original store. My friend had to go out of business. Now he fixes computers in his garage.

Take this as a good lesson. Also, hope the state doesn't come after you. Not only did you not pay taxes on him, you helped him short change his ex-wife on child support.
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Old 03-05-2018, 05:46 PM   #18
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Re: I Got Turned In To Work Comp People For "paying Under Table"


If you have to be talked into someting, there's probably a good reason you shouldn't do it
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Old 03-05-2018, 06:45 PM   #19
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Re: I Got Turned In To Work Comp People For "paying Under Table"


Desperate people do desperate things to acquire the funds to refloat their SS Titanic of life.

Student loans = desperation level one
Alimony by Expert lawyer while you cheaped out = added loss of disposable income = desperation level 2.

Multiplier federalized child support collections they'll take your SSI from your last day in the ICU...


You're just a disposable couple of weeks of cash flow in this on going disaster of a life, he is just a ring of misery infecting all his interactions with moral actors.

Your criminal acts are just handles this clown used to extract thousands from your business via the Workman's Comp enforcement system.

Get a GOOD WC lawyer and good accountant, it might be time to start over and declare bankruptcy, Hope you are not a single proprietor.....
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Old 03-06-2018, 10:58 AM   #20
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Re: I Got Turned In To Work Comp People For "paying Under Table"


Quote:
Originally Posted by builditguy View Post
Your state may be different. When you say you got turned in to work comp people. I assume you mean your insurance company?
Or is there a state agency for that?

For the most part, you are lucky. Yes you will get stuck with some back fees, but it could be so much worse.
A friend owned a computer repair company. He had one employee. He didn't have any work comp. The employee went out in the parking lot to smoke a cigarette. He broke his ankle, in the parking lot. My friend paid all of his medical bills and his full salary. When the employee came back to work, he got a lawyer and sued his boss.
Now, the employee has his own computer repair business, 2 doors down from the original store. My friend had to go out of business. Now he fixes computers in his garage.

Take this as a good lesson. Also, hope the state doesn't come after you. Not only did you not pay taxes on him, you helped him short change his ex-wife on child support.
Horrible story. Our legal system is so corrupt I sometimes wonder why I got into business. Small operators take it in the shorts, the big players can get laws passed.

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