No I didn't know about the new resellers permit, thanks.Washington state is actively cracking down on things like this.
Have you read or heard about the new Washington state "resellers permit" that is replacing the old "resale certificate". This came about because of contractors not paying in all the sales taxes or buying things for themselves and claiming tax exempt resale. Next month you may or may not get your new resellers permit which will have to be renewed every year after a audit.
A Marysville Drywall Contractor that just got busted for not paying in the sales taxes.
Mainly I was thinking risks as in liability, such as what if there's an accident? Or what if there's something wrong with the work? Someone told me once that if you pay someone cash and they make a mistake, you can't go after them for it later. Of course in my case, with the job I was offered now, that would be a good thing for me. He's the prime contractor, I'm a sub, so if I make a mistake he can't come after me for it later? Another concern I had is what if I had an employee on the job, say I paid him cash and he got injured? What would be the consequences? What issues would I have with L&I? You'd have to live in Washington to know what I mean by L&I, but there are a few on this site.
Yeah I know, when someone says "hey this will be a cash job" they don't mean it literally as in the green stuff. They mean they want to pay you with no taxes (under the table). True with no contract plus no taxes taken out, there's no proof you did the job.There is very little difference between a cash job and a job paid by check or credit card. You are still required to file all net profits to be taxed as if it were being paid any other way.
If you are operating under a contract, it is the contract that will make the call on how things happen when something goes wrong, not the payment method.
Now if you are operating under the radar and offer no contract and are a shady character then there is no proof that you did the job, so they can't come after you anyway.
Hmm, I was thinking the same thing, that if I give this guy a good deal, he can get me lots more work. But I think if I do this, it will be the last cash job I do for him. It's my first year in business, so I haven't done any end of the year taxes yet, I'm a little unfamiliar with the 1099. But how did they track that extra 5 grand you made? If he pays you cash, you can even say someone gave it to you.It only took me once to learn...I have a "contractor" from Virginia ask me what my bottom dollar cash price was...Now this meant to me that he would pay me cash and I wouldnt get a 1099. This was in my early years and didn't know better. I gave hime a dollar figure hoping an "in" would get me lots more work. It did...I worked for a year for that guy...Come tax time I got a 1099 and had to come up with about 5 grand in additional self employment taxes. We aren't friends no more. What I learned...TRUST NOBODY.:no:
Hmm, I was thinking the same thing, that if I give this guy a good deal, he can get me lots more work. But I think if I do this, it will be the last cash job I do for him. It's my first year in business, so I haven't done any end of the year taxes yet, I'm a little unfamiliar with the 1099. But how did they track that extra 5 grand you made? If he pays you cash, you can even say someone gave it to you.
Do you accept cash jobs when someone offers them to you? I've done them in the past and never had a problem. A general contractor recently offered me one to sub out some work, what are the risks involved?