Paying cash to workers

[Deleted]

Apr 15, 2016 7:21:26 GMT -5 ArchietheDragon said:

I don't mind paying people in cash if they want it.  I do mind people being assholes, though. 

I put up with a lot from contractors, but I would have told this one to not come back.

[Ombud]

Most independents do Square here. Is he scamming his boss? $ 100 boss / $ 50 him?

[hoops902]

I'd just agree to pay him, then have a check for $300 waiting for him when he was done. He can either take it or not.

[HoneyBBQ]

I wouldn't like the attitude. He wouldn't be coming back to my property. But I have no problem with paying cash.

[The Walk of the Penguin Mich]

I've run into this a couple times.  The finish carpenter we used for the kitchen last year wanted cash to remove and replace the appliance cubby so the installers could put in the counter top.  He did a great job, in fact....this guy installed the cabinets in the house when it was built!  He also painted the top trim on the garage.  TD had been painting trim and was having issues going that high up on the ladder.  I think we paid about $200 for this.

I also paid $200 to the guy who detailed my car a couple years ago.  I need to call him back to do it again, he did a great job.

For some things, I have no problem with this.....other than remembering needing to get the cash!

[Deleted]

Apr 15, 2016 8:59:55 GMT -5 hoops902 said:

I'd just agree to pay him, then have a check for $300 waiting for him when he was done. He can either take it or not.

I told my story to a friend,  It seems that someone in her neighborhood had work done.  She then tried to pay the guy by check, and he got belligerent.  Things escalated to the point where she called the police! The police officers escorted her to the bank to get cash so that the man would be satisfied.  There were no charges.

So it is not quite as simple as having the check waiting for him.  He told us upfront how he wanted this installment. 

[swamp]

I used to pay my daycare provider in cash. She wanted cash because she didn't have time to go to the bank to deposit checks. She was taking care of kids. She does have an EIN and gave me statements for tax deduction purposes.

I pay my cleaning lady in cash. That's what she asks for because she doesn't have a bank account. She does get a 1099. She's fine with it.

ETA:  The car detailer requires cash too.  I'm fine with it.

[Deleted]

Apr 14, 2016 19:25:55 GMT -5 whoisjohngalt said:

Apr 14, 2016 18:14:23 GMT -5 @logicnow said:

I think that would be a deal breaker for me (huge red flag in my state).  Sorry, check or credit card, otherwise I'm back searching for another contractor.  Ironically, the smaller the cost, the more likely I won't do cash.

Where I live any contractor that does any type of work, no matter how small can place a Construction Lien on the title to your property.  I want the paper trail of the check or credit card to show in court if they try to place a false lien on my house.  The bank saves my records on-line for 5-7 years depending on the document and I save them indefinitely as an electronic file.  Last thing I want is to have to keep track of some signed receipt for the just in case.  Cancelled checks or credit card statements hold up much better in court (can't be forged or claimed you didn't sign).

Business have certain costs of being in business (insurance, taxes, etc).  So if he can't deal with a bank account and check then he probably doesn't have any of the other items.  My house and umbrella policy all want me to hire licenses (when required) or insured service providers.  I don't want a work man's comp claim or other crap law suit with someone that clearly can't do business in a normal fashion.

But wouldn't a written receipt solve that problem?

First I answered why I don't like that method.

Second, maybe not.  Courts can be funny as someone I know had problems with a water heater install.  He won in small claims but lost on appeal (everyone was surprised you could appeal small claims court).  Contractor was very savvy in court and had clearly done this before (almost on the level of a scam).

The signed receipt can mean nothing.  Is the guy that took the cash the owner of the business or authorized agent?  Everyone can claim I made up the receipt.  Just not the same as a cancelled check or credit card payment.  The contractor can always say, that is not my signature, or I didn't sign that and now you have reasonable doubt. 

[Deleted]

I always ask anyone doing work at my home what forms of payment they accept.  I know that using a check will cost me more because they have to pay the horrendous fees at the check cashing stores. I do pay large jobs (tree removal-$2,300) by check and I'm OK with the "surcharge" because I don't want to bring home that much cash.  Personally, I have more of an issue with businesses that surcharge for credit card use.  I changed flooring companies because the quoted prices of one were for cash or check, with a 3 to 5% surcharge for credit card to cover their costs. I think brick-and-mortar companies should accept that CC fees are just a part of doing biz.  

[OldCoyote]

Old coyote sometimes demands cash,   because ...... your check may not be good!

There is a check for $6225.47  taped over my desk right now,  Marked account closed!

[Ombud]

Maybe that's why so many do Square. I don't have a checkbook. Haven't had checks in over 12 yrs. I think Schwab sent me one but I don't know what I did with it

As far as the OP goes, the guy's a jerk & I'd use someone else. I hate price changes after the fact

[Gardening Grandma]

As long as they tell me upfront, I don't mind paying cash. Their reasons are none of my business and I don't care.

[DagnyT]

I generally pay however they ask. I understand why they prefer cash. They don't know if the check will clear the bank. I have two rental properties. I will accept a check from my tenants, but I much prefer when they pay cash. Most of my tenants have paid in cash, some don't even have a checking account. Over the years, I have had to deal with a few checks that did not clear the bank, and it is a major pain. By the way, I do claim all the rental income on my tax return.

[lund]

How do you handle that, Oldcoyote?





Here, the most common way to pay is by getting handed an invoice, usually to be paid within 15 days.

The second most common is by card.

The third is cash, with a receipt. It should give the tax data. (If it doesn't it can get very expensive for them!)

Paying over a mobile "phone" using an app is getting more common for small amounts, such as parking or the flea market.

Checks are not in use here anymore. Many under 30 have never seen one.

[mroped]

About 99.99% of payement that I receive for work are check. I did have just one or two cases in 15 where the checks were bad but that's alright!
Very few cash payements and credit cards not realy.
I got a square and I keep it in my truck but the only payement made by CC so far in the last 2-3 years was done by the State of Pennsylvania for a restoration at Joseph Priestley's House Museum.
Truth to be told, I don't even advertise the fact that I'm taking CC.

The jobs that I'm doing are mostly over a couple thousend and people don't even ask if I take CC. They just pay by check!

[Ombud]

Apr 17, 2016 14:39:54 GMT -5 DagnyT said:

I generally pay however they ask. I understand why they prefer cash. They don't know if the check will clear the bank. I have two rental properties. I will accept a check from my tenants, but I much prefer when they pay cash. Most of my tenants have paid in cash, some don't even have a checking account. Over the years, I have had to deal with a few checks that did not clear the bank, and it is a major pain. By the way, I do claim all the rental income on my tax return.

So then you just keep their $3000 in cash or do you then have to run it to the bank?

[Ombud]

mroped, found out the handyman took it when he suggested I just do it over the phone so he could get 3 jobs in 1 day. I wasn't there & he's a keeper

[mroped]

I have never been big on the "down payement" for a job concept.
I do take down payement for jobs that require a high up front investment in materials but I take the payement when I deliver the materials on the job. 
The rest of the amount is either scheduled by steps in the project or at the end after the final inspection by the owner.

There was the case when I was doing public projects where I had to pay for materials and had to wait another 45 days to get a payement. And I'm not talking about $500-$1000 either. Imagine what 120 cubic yards of concrete and 2 miles of rebar cut to dimensions and bent to specifications costs. That and labor at prevailing wages for two guys for that period of time.
If somebody would start complaining about me paying him $100 check and not in cash as arranged, I would be the one throwing a fit!

I am alright with paying cash for certain things to maybe a teenager or a retired person or to the house cleaner(we love her!) but generaly I'm not very keen to the idea.
When I'm asked "how do you prefer to be paid" I'm always answering "however you'd like I'm fine with it!" Meaning that "I don't care as long as you pay!"

[Ombud]

Had a guy do a bunch of work this spring (not the handyman who cleaned the gutters $200 & walkway $150). A contractor who painted inside, put in bathroom fans, new mirrors, new sinks, fixed walls, windows, an electric issue ... A LOT of work. Didn't bother me one bit to pay materials first then labor when done.

[Deleted]

Ironically, DH talked to the deck guy today to tell him that we had cash for him.

He said, "Well, i would have taken a check now that I know where your CU is located!"

We agreed he is crazy.  However, he's still doing the decks tomorrow, and we do have cash for him.  

[beergut]

Apr 14, 2016 16:33:49 GMT -5 @bamafan1954 said:

Then I got a call from the guy.  He was pissed because he drove all over town trying to cash our check and other checks.  It was on the credit union.  If he had asked us where the nearest branch was, we would have told him.  He didn't.  He was even more pissed because he had to pay $5 to cash the check.

He told me to have $350 in cash on Monday or find someone else to finish the job.  He was no longer taking checks from anyone.  He doesn't have a bank account, and it is a PITA trying to cash these.  He used to be cash only and started taking checks to be "nice," but he's not going to be nice any more.  He's right about that.  He sure was angry.  He told me several times that we would be doing it his way or no way.  Lol.

His decision to not have a bank account is why he has to pay $5 to cash a check. If he was angry about that fee, I would point out that the person he should be angry at is himself. 

The minute he starts complaining and threatening that you need to find someone else, take him up on that offer. Not sure why he feels it is professional to completely lose it with an employer, which is what you are. 

[DagnyT]

Apr 17, 2016 15:43:05 GMT -5 Ombud said:

Apr 17, 2016 14:39:54 GMT -5 DagnyT said:

I generally pay however they ask. I understand why they prefer cash. They don't know if the check will clear the bank. I have two rental properties. I will accept a check from my tenants, but I much prefer when they pay cash. Most of my tenants have paid in cash, some don't even have a checking account. Over the years, I have had to deal with a few checks that did not clear the bank, and it is a major pain. By the way, I do claim all the rental income on my tax return.

So then you just keep their $3000 in cash or do you then have to run it to the bank?

Lol. $3,000?? Don't I wish. My two rentals are located in a rural community. Rents are $550 for one and $630 for the other one. Yes, I just take the money to the bank, which I drive right by on the way to work or anytime I go shopping. Both rentals are located adjacent to my home, which is the main reason I own them.

[TheOtherMe]

DS and BIL have a farm rental.  Many years ago now, they had to have eviction papers served on the tenants.  They paid all the back rent in cash the day they were served and have paid in cash since.  I doubt if it rents for more than $300 per month.  They have been in the house a good 25 years by now.  If they are late, they add the late fee when they bring the rent. 

[Deleted]

I did something I never do yesterday; DH and I were outside of the house and a guy with a truck said he was doing work in the neighborhood and would trim our trees for a good price. Typically I research, check Angie's list, etc. but this was just tree-trimming, although at heights neither DH nor I would attempt.

Did not ask about payment method. They finished and I gave him a check, then left for the gym. He came back later and DH answered the door. Very flustered because the check was on an out-of-state bank (USAA) and he couldn't cash it. This AM I went to a cash machine and withdrew the cash; DH will call him. He gave me a card with his business name in it but wanted the check written to him. The card said he was "fully insured". How can you have workers' comp coverage if you don't have payments made to the business? (WC coverage is a rate applied to payroll.)

Never again will I agree to have work done by someone who just pops up in the neighborhood.

[OldCoyote]

If I pay cash to someone that does some type of service,  I could care less about what they do with the money.

The old man that did a lot of the work when I remodeled my kitchen was paid every day in cash. 

The quality of the work he did, I got a huge bargain.

[emma1420]

The contractor/handyman I use I will give cash to.  He's fine with check, credit card, or cash.  I pay him for materials up front and labour after he's finished the job.  However, I've used him on and off for at least a year.  He also has a key to my house.  He's worth his weight in gold, as he's trust worthy, does a great job, and is very reasonably price.  For those kind of people I'll pay them however they want.

[moneymom]

I pay cash if they prefer it and many will give me a great discount for it.  However I have never once paid any cash until the work was done.  And even though they could be avoiding taxes, they always have given me a legit receipt with their license # etc on it.