paying wages in cash..

deniseE

Other than just being plain bad practice...is there anything preventing an employer from paying ee's in cash---providing all taxes and so forth have been taken out and accounted for???

Don D

I'm not a payroll expert or accountant, but I'm not aware of any government regulation that requires an employer to pay in 'other than cash'.

lnelson

[font size="1" color="#FF0000"]LAST EDITED ON 05-27-04 AT 03:20PM (CST)[/font][br][br]Agree with Don -
As long as you have all documentation (hours worked, hourly wage, etc) and pay out the taxes you are ok. Nothing saying you cannot pay cash.

The only problem is there will be no paper trail as far as the cash goes you can always have the ee's sign that they received $ for work completed on (date).

marc

And make sure you have the EEs prove their identify if you do not know them on sight. In my old CPA days, we would occasionally show up on payday at a clients request and hand out payroll and require picture ID and a signature for each paycheck.

These were usually some remote construction projects with lots of short term construction workers. A complete hassle, but effective. I personally discovered three ringers on one payday on a Wyoming natural gas pipeline. I kept the checks and the companies hired security guys took charge of the imposters.

Shadowfax

Geez guys, my first day in the USAF they gave me $36 cash, promptly marched me (still in civvies) to the PX and made me buy $34 worth of stuff the Sgt. said I needed. I didn't sign nuthin' and I don't think anyone ever complained. I'm reasonably certain no one ever sued.

Hatchetman

[font size="1" color="#FF0000"]LAST EDITED ON 05-27-04 AT 07:39PM (CST)[/font][br][br]Remember, cash (bills) is legal tender to pay all debts.

I think there is a provision that you can't pay a large debt in all coins, though. And that a large amount of money, like a million dollars, doesn't have to be accepted in cash. Of course, who would have a million bucks on hand to pay -- oh, Don D. would He's rich. x:D :~~

Don D

I was wondering when Hatchetman would show his once-annual sense of humor. x:-)