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» Film-Tech Forum   » Operations   » Ground Level   » Paying employees in cash

Author Topic: Paying employees in cash
Scott Madsen
Film Handler

Posts: 58

Registered: Oct 1999

 - posted 11-01-2000 11:22 AM      Profile for Scott Madsen   Email Scott Madsen   Send New Private Message       Edit/Delete Post 
I have a friend of the family who works at a local theatre chain. He is paid each week in cash. I thought this was strange. In my theatre work and others I know, it's always been by check. Is this normal? Is this a sign of financial trouble or something? What would be the reason for paying this way?

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John Pytlak
Film God

Posts: 9987
From: Rochester, NY 14650-1922
Registered: Jan 2000

 - posted 11-01-2000 11:32 AM      Profile for John Pytlak   Author's Homepage   Email John Pytlak   Send New Private Message       Edit/Delete Post 
Perhaps your friend is working "off the books" to avoid taxes or mandated benefits payments? Does he get anything in writing showing that payroll taxes are being paid? If not, it's a very questionable (and likely illegal) situation.

John P. Pytlak, Senior Technical Specialist
Worldwide Technical Services, Entertainment Imaging
Eastman Kodak Company
Research Labs, Building 69, Room 7419
Rochester, New York, 14650-1922 USA
Tel: 716-477-5325 Fax: 716-722-7243

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Bob Minge
Film Handler

Posts: 43
From: Fergus Falls, MN, USA
Registered: Aug 2000

 - posted 11-01-2000 02:26 PM      Profile for Bob Minge   Author's Homepage   Email Bob Minge   Send New Private Message       Edit/Delete Post 
In our chain, they send us (Managers) one check and we have small pay envelopes with lines to write taxes paid etc. on the ourside. We send the check and the pay envelopes to the bank with our deposit bag and get back the pay envelopes with cash. So technically we get paid in cash, but we do get the envelope with the amount of deductions each pay period and a W-2 at the end of the year.

Bob Minge
Westridge Cinema 5
Fergus Falls, MN

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Ian Price
Phenomenal Film Handler

Posts: 1714
From: Denver, CO
Registered: Jun 99

 - posted 11-01-2000 03:17 PM      Profile for Ian Price   Email Ian Price   Send New Private Message       Edit/Delete Post 
We are new in business. We run only one 5-plex. We only have 12 employees. But we do know that if we don't follow the letter of the rules, it will come back and snap us in the ass.

We use ADP for our payroll services. It's easy. About the sum total of our involvment is that we call in the hours the employees worked for the period. Their fee is smaller than the headach it would cause me if I had to fugure it out on my own.

This week we get to experience something new; Direct deposit of our checks.

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Mark Gulbrandsen
Resident Trollmaster

Posts: 16557
From: Bountiful, Utah
Registered: Jun 99

 - posted 11-01-2000 05:45 PM      Profile for Mark Gulbrandsen   Email Mark Gulbrandsen   Send New Private Message       Edit/Delete Post 
Its fine till you get caught. In some states, if caught, they will make the employer pay the taxes plus a stiff penalty, sometimes double the amount owed. Other states will also make the payee pay the taxes plus penaltys. All around a bad deal.

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Russ Kress
Expert Film Handler

Posts: 202
From: Charleston, WV, USA
Registered: May 2000

 - posted 11-01-2000 11:21 PM      Profile for Russ Kress   Author's Homepage   Email Russ Kress   Send New Private Message       Edit/Delete Post 
Bad deal!!!!?

I would LOVE to receive my GROSS pay!

I'd never tell! They could rip off my fingernails! *grin*

I could afford to raise nine or ten more kids with what I pay in taxes!

Then there's that BMW I always wanted, a nice tropical cruise, maybe a nice pair of bunny slippers......

*gotta go!* (I'm making a list)


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Jerry Chase
Phenomenal Film Handler

Posts: 1068
From: Margate, FL, USA
Registered: Nov 2000

 - posted 11-02-2000 11:51 AM      Profile for Jerry Chase   Author's Homepage     Send New Private Message       Edit/Delete Post 
I've worked for companies that paid like this. Although I don't think it is anywhere near as common as it used to be, at one time this was the preferred method of wage payment. The envelope should have the required deductions listed on it just like a check stub, and the employee should sign for the envelope with the pay.

Since many teenage employees might not have checking accounts, and wouldn't want to pay to take a check to a check cashing store, and other employees might want to avoid garnishment of wages by not having a written record of pay in a bank (which could be traced by a lawyer) until tax filing, I can see how the method could be gaining favor again.

One thing employers rarely try to fudge is employee wage records. This type of fraud carries stiff penalties.

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Ken Layton
Phenomenal Film Handler

Posts: 1452
From: Olympia, Wash. USA
Registered: Sep 1999

 - posted 11-03-2000 07:56 AM      Profile for Ken Layton   Email Ken Layton   Send New Private Message       Edit/Delete Post 
A local 8-plex used to pay employees with money from the video games. This particular location made lots of money on the video and pinball machines. Kinda fun to get paid in QUARTERS!

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Greg Mueller
Phenomenal Film Handler

Posts: 1687
From: Port Gamble, WA
Registered: Jun 99

 - posted 11-03-2000 08:21 AM      Profile for Greg Mueller   Author's Homepage   Email Greg Mueller   Send New Private Message       Edit/Delete Post 
The benifit for the employer is they don't have to pay matching money for L&I and SS and unemployment. But they don't get to deduct the employee on their taxes either, since they "don't exist". For the employee the advantage is no deductions and you can get unemployment or disability or welfare and still work. As long as both parties are happy and in agreement, everything is Ok.

Greg Mueller
Amateur Astronomer, Machinist, Filmnut

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Carl King
Expert Film Handler

Posts: 199
From: Saint John, New Brunswick, Canada
Registered: Mar 2000

 - posted 11-03-2000 11:17 AM      Profile for Carl King   Email Carl King   Send New Private Message       Edit/Delete Post 
I would question the business practise of any employer who is paying by cash and not cheque unless the cash is accompanied by a list of deductions and taxes paid. It might seem ok to beat the IRS (in Canada its CCRA)but if everyone stopped paying their taxes how would we get the roads we drive on and the other things that the government does like MediCare and unemployment insurance and things like that. Don'te get me wrong..I hate paying too much tax. We do in Canada but it's getting better.

Back to today have debit and credit cards as well as bank accounts. Direct deposit is the way to go. IF your employer doesn't have it ask him/her to get it. It is great.

If the employers are doing things that look suspicious check it out and make sure that you are not going to get in trouble because your employer is lazy or unscrupulous.

The honest way is the best way for everyone.

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Stephen Jones
Master Film Handler

Posts: 314
From: Geelong Victoria Australia
Registered: Jun 99

 - posted 11-07-2000 06:09 PM      Profile for Stephen Jones   Email Stephen Jones   Send New Private Message       Edit/Delete Post 
My pay gets credidited to my bank account each week as is the case with the major companies here in Australia.I get a pay slip with the tax payed and other details given to me at work.

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Gordon McLeod
Film God

Posts: 9512
From: Toronto Ontario Canada
Registered: Jun 99

 - posted 11-07-2000 06:17 PM      Profile for Gordon McLeod   Email Gordon McLeod   Send New Private Message       Edit/Delete Post 
If the employees are being paid cash under the table then they are not covered by anyform of workers compensation if they get hurt on the "job"
A very bad situation to get caught in

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