I'm Not Sure Of My Next Step

 
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Old 01-13-2018, 01:33 AM   #1
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I'm Not Sure Of My Next Step


OK a breif background. I am a sole proprietor. I pay wsib and hst so I'm legit. I've had a buddy/lead hand working for me for the past year and due to some poor life choices on his side I opted to pay him cash. I mainly work for another framer as a sub by the hour. My question would be how do I go about putting my guy on the books? He can't sub for me and he needs x amount an hour to stay( I have no problem with his wage value). Hes going through messy divorce and child payments. Anyone have any ideas on what to do? I thought low hourly wage and top up like a bonus type deal. I'd keep paying cash but the cra does not like it. Any help would be awesome! I wanna keep him cause good help is hard to find round here.

Thanks
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Old 01-13-2018, 02:15 AM   #2
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Re: I'm Not Sure Of My Next Step


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OK a breif background. I am a sole proprietor. I pay wsib and hst so I'm legit. I've had a buddy/lead hand working for me for the past year and due to some poor life choices on his side I opted to pay him cash. I mainly work for another framer as a sub by the hour. My question would be how do I go about putting my guy on the books? He can't sub for me and he needs x amount an hour to stay( I have no problem with his wage value). Hes going through messy divorce and child payments. Anyone have any ideas on what to do? I thought low hourly wage and top up like a bonus type deal. I'd keep paying cash but the cra does not like it. Any help would be awesome! I wanna keep him cause good help is hard to find round here.

Thanks
If you are a general contractor you must be doing some legal books even if you are a sub for another company. Real and professional accounts and CPA know a thousand times more than you and I will every know about how to set up your IRS, state, employment, social security, medicare and other accounts.

As for paying him cash in the past, I already stated several times that I have had 12 post-termination worker comp lawsuits in the past two years and two civil lawsuits by one employee who filed 3 different post-termination worker comp claims. The civil lawsuit is for more than $1 million and I have to pay the attorney fees that will cost $80,000 to $120,000. I think my records make me look like an angel and a victim, but being an angel is not how the courts work. For some strange reason, there is this unwritten law that says that the lawyer who files the lawsuit has to get no less than $15,000 to $20,000. Otherwise, without my paying that amount of money there can be no settlement that is agreed upon. The opposing side cannot psychologically settle for zero.

Your had better do some reading on the internet about mis-classifying employees as independent contractors, paying cash, not paying worker comp insurance and read about the fines in excess of $500,000 by the time all the government agencies are done with you and that is for only 1 employee.

You get your employee legit by contacting a real professional accountant or CPA and listen to his (or her) advice. I think the cost to make an employee legit is about 10% to 15% for worker's comp and 7.5 percent for the payroll tax costs including matching his taxes.

If an employee is seriously injured on a job, or killed dead and you are liable because you did have safety meeting and violated safety laws you can end up going to jail. Read on the internet about business owners who went to jail because they thought their buddies would have an accident and then government agencies and attorneys pounced on them. Everything feels okay at the end of every day and I had only two worker comp cases in 50 years and these past two years have been the worse in my life. I was covered for every worker comp case, but I never expected than an ex-employee would file a civil lawsuit 15 months after I fired him because the scumbag can't get another job.

As I always say, your best friend and even a relative will sue you if he gets injured on a job and can't buy food or pay his rent.

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Old 01-13-2018, 07:03 AM   #3
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Re: I'm Not Sure Of My Next Step


If you are a sub there's no reason you can't hired him. But being paid by the hour makes it sound like you are an employee that got suckered into paying all of your own expenses. So looks like you want to pass the buck and screw your friend as well. Looks like you are asking how best to get around all those pesky laws.
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Old 01-14-2018, 02:15 PM   #4
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Re: I'm Not Sure Of My Next Step


I thought the whole idea of WC is that the employee CANNOT sue you for work related injuries.
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Old 01-14-2018, 03:05 PM   #5
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Re: I'm Not Sure Of My Next Step


Call the government are you in Ontario?

You need to setup a payroll account with the cra and get him set up.

Don't fear the Government they can be helpful in getting you the information you need quickly

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Old 01-14-2018, 09:48 PM   #6
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Re: I'm Not Sure Of My Next Step


Put him on the books as a temporary employee get your workman’s comp going and figure out your employee obligation tax and factor that into your billing




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Old 01-16-2018, 11:17 PM   #7
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Re: I'm Not Sure Of My Next Step


I think I worded my question wrong. Im not worried about putting him on the books. I'm more concerned about the pay structure. As I posted earlier its a messy divorce and shes being greedy. He sees his kid more often than not. I just wasnt sure if you guys had any ideas on how to pay him so that she doesn't go after it all. Like maybe a set salary with bonuses? Monthly top ups? Etc.
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Old 01-17-2018, 12:02 AM   #8
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Re: I'm Not Sure Of My Next Step


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I think I worded my question wrong. Im not worried about putting him on the books. I'm more concerned about the pay structure. As I posted earlier its a messy divorce and shes being greedy. He sees his kid more often than not. I just wasnt sure if you guys had any ideas on how to pay him so that she doesn't go after it all. Like maybe a set salary with bonuses? Monthly top ups? Etc.
It's all pay no matter how you set it up. Don't try to hide it or you too will soon be in a bad spot.
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Old 01-17-2018, 12:13 AM   #9
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Re: I'm Not Sure Of My Next Step


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I think I worded my question wrong. Im not worried about putting him on the books. I'm more concerned about the pay structure. As I posted earlier its a messy divorce and shes being greedy. He sees his kid more often than not. I just wasnt sure if you guys had any ideas on how to pay him so that she doesn't go after it all. Like maybe a set salary with bonuses? Monthly top ups? Etc.
I am not with you about your idea of helping your buddy to hide money from his spouse, or ex-spouse-to-be. It is too bad for him that he is in a messy divorce, but I am a firm believer that every wife is entitled to the amount of money allowed by the state laws. In California we have No-Fault divorce laws. That means that nobody is at fault. Then, the problem always arises where the husband thinks the wife wants too much. I am a firm believer that women give up a lot to be with a man and when divorces happen the man should make sure that the woman has enough to take care of herself until she gets on her feet. No amount of money is too much for the hurt that people do to each other and the hurt they have to go through when breaking up.

It is not your job to help your buddy hide money and the best help you can give is to help him to learn to have empathy, understand the dynamics of the relationship, to appreciate what his wife gave him and to work out a peaceful settlement.
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Old 01-17-2018, 08:14 AM   #10
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Re: I'm Not Sure Of My Next Step


In Michigan bonuses can go 100% to the wife if the husband is behind on child support as opposed to half of his check if he's not behind whether he is behind or not.

I'm also not for you helping your buddy out of his obligations. Let the courts decide what's right.
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Old 01-17-2018, 08:27 AM   #11
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Re: I'm Not Sure Of My Next Step


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I think I worded my question wrong. Im not worried about putting him on the books. I'm more concerned about the pay structure. As I posted earlier its a messy divorce and shes being greedy. He sees his kid more often than not. I just wasnt sure if you guys had any ideas on how to pay him so that she doesn't go after it all. Like maybe a set salary with bonuses? Monthly top ups? Etc.
Only a divorce attorney can give you an answer.
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Old 01-17-2018, 08:30 AM   #12
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Re: I'm Not Sure Of My Next Step


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I am not with you about your idea of helping your buddy to hide money from his spouse, or ex-spouse-to-be. It is too bad for him that he is in a messy divorce, but I am a firm believer that every wife is entitled to the amount of money allowed by the state laws. In California we have No-Fault divorce laws. That means that nobody is at fault. Then, the problem always arises where the husband thinks the wife wants too much. I am a firm believer that women give up a lot to be with a man and when divorces happen the man should make sure that the woman has enough to take care of herself until she gets on her feet. No amount of money is too much for the hurt that people do to each other and the hurt they have to go through when breaking up.

It is not your job to help your buddy hide money and the best help you can give is to help him to learn to have empathy, understand the dynamics of the relationship, to appreciate what his wife gave him and to work out a peaceful settlement.


Good lord!
Don't get a divorce in NJ with kids.

I have a couple friends who have had their ex's wipe them out!
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Old 02-02-2018, 10:09 PM   #13
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Re: I'm Not Sure Of My Next Step


Im in a situation I guess sort of similar, I frame with my buddy for other contractors and have whoever I can get come help me, I am an llc, and have no employees. I pay everyone by check and write stupid random stuff on the checks like "table saw" or "ladder" like I'm buying it from them. That way they don't technically work for me, I don't pay insurance on them, and they get what they want per hour without taxes. I don't know if that will work for you but just sharing how I'm rolling right now
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Old 02-02-2018, 11:15 PM   #14
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Im in a situation I guess sort of similar, I frame with my buddy for other contractors and have whoever I can get come help me, I am an llc, and have no employees. I pay everyone by check and write stupid random stuff on the checks like "table saw" or "ladder" like I'm buying it from them. That way they don't technically work for me, I don't pay insurance on them, and they get what they want per hour without taxes. I don't know if that will work for you but just sharing how I'm rolling right now
Sounds like you are running totally illegally. Hopes the IRS and other government agencies don't read about how you are running your business.

I don't know what you are thinking, but writing on the check that you purchased a table saw does not negate the fact that the person worked for you. You will find out about how laws work when (if) a worker gets injured. I just spoke with a the owner of a kitchen cabinet shop today who was sued for not paying worker's comp. The worker fell off a step ladder, broke his collar bone and literally put his boss out of business.

I've been in business for more than 50 years and never went one day without worker's comp insurance. I never had one employee in my entire life who did not pay income taxes.

Some people should take some serious time to read about the penalties and lawsuits for not paying employee taxes and for not having worker comp insurance.

If you don't have a pot to pee in then don't worry. If you have a nest egg you can lose everything you saved in a lifetime with only one worker comp claim.
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Old 02-03-2018, 07:42 AM   #15
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Re: I'm Not Sure Of My Next Step


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Im in a situation I guess sort of similar, I frame with my buddy for other contractors and have whoever I can get come help me, I am an llc, and have no employees. I pay everyone by check and write stupid random stuff on the checks like "table saw" or "ladder" like I'm buying it from them. That way they don't technically work for me, I don't pay insurance on them, and they get what they want per hour without taxes. I don't know if that will work for you but just sharing how I'm rolling right now
AKA - gambling...

You've had a lucky streak up until now... just keep in mind that Mr. Murphy likes to remind us from time to time that all streaks end...

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