Part-time workers not getting paid
sssteel
21 Posts
Our owner is having his brother in law come in and work for a week while our receptionist is on vacation. I asked how he was going to be paid and my owner told me not to worry about it because he was paying him out of his own pocket. I am trying to convince him that this isn't a good idea but he won't listen. We can't have someone come in and work for us without having any record of payment. This could cause us many problems down the road but he won't listen. Have any of you ever dealt with something like this? If so what are your thoughts and how would you approach the situation?
Comments
[B]Income and unemployment taxes.[/B] You're not required to withhold federal and most state income taxes or to pay federal (FUTA) and state unemployment taxes with respect to your cash payments to an employee for casual labor unless
[LIST]
[*]the cash payment is $50 or more in a calendar quarter, and
[*]the employee was engaged in casual labor for some portion of 24 different days during that quarter or during the preceding calendar quarter.
[/LIST][B]FICA taxes.[/B] You're not required to withhold or pay FICA taxes with respect to your cash payments to an employee for casual labor unless the payments amount to $100 or more during the calendar year.
But the person is doing the work of our receptionist and he is being trained by her before she leaves for vacation. He is supervised by the owners of our company while he is doing personal work for the owner. This is a mess! Not to mention no even told me he was coming in! I show up to work today and there is a man sitting at our receptionist desk!
Meanwhile, keep your eyes open for another employer. Anyone who is this willing to break the law and put the entire company at risk to save a few bucks is lacking in integrity. If they cheat there, they will cheat with you.
Of course, it is always possible they are just coming up with a way to get some money to a family member in need without loss of pride. I commend the idea, but this way shows poor judgement.
Good luck!
Nae
I'm not a huge proponent of CYA, but in this case, I would make sure you print and save any and all records of this conversation. This is an example of why your 'final thoughts' on a potential federal violation should always be via e-mail.
[quote=KSR6450;716371]Look up 'casual labor' on the IRS website or anywhere else and you will note that the money paid to these workers is considered wages. If it is over $50/$100 in one quarter, I'd be careful...
[B]Income and unemployment taxes.[/B] You're not required to withhold federal and most state income taxes or to pay federal (FUTA) and state unemployment taxes with respect to your cash payments to an employee for casual labor unless
[LIST]
[*]the cash payment is $50 or more in a calendar quarter, and
[*]the employee was engaged in casual labor for some portion of 24 different days during that quarter or during the preceding calendar quarter.
[/LIST][B]FICA taxes.[/B] You're not required to withhold or pay FICA taxes with respect to your cash payments to an employee for casual labor unless the payments amount to $100 or more during the calendar year.[/quote]
I had a former employer who liked to use 'casual labor' to save money. It was not a good situation; but he, like everyone else, was afraid of the IRS!
You've made your objections known. Like others have said, document and move on. No point in you wrecking your career here.