General welding questions that dont fit in TIG, MIG, Stick, or Certification etc.
homeboy
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I had an employee whose father was an accountant. The way he set it up was for the employee to give me an invoice each week for the amount of his wages which I paid as a subcontractor with no deductions. They must have figured out it was worth it with the dedutions and whatever. For myself I was self employed for many years and paid into the CPP( Canada Pension Plan) myself and am now collecting no problem. As others said check with a good accountant and this may possibly work in your favour. :D
TheBeardedWelder
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Great help thanks!!

This is a side gig for some extra cash tbats it. Just not sure how to handle it. But i do now. Thanks..

I just bought a olane ticket to mexico. Its been real guys..!!

jk

Thanks!
cj737
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Trade that ticket in for one to Panama. US has extradition with MX ;) :D
Warrenh
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I would like to know what the "morality" compenent is in paying taxes. I really dont understand that statement.

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Poland308
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Some people feel that not paying your legally required portion of taxes is a display of poor moral character.
I have more questions than answers

Josh
Farmwelding
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Poland308 wrote:Some people feel that not paying your legally required portion of taxes is a display of poor moral character.
If they wanted you to pay your fair share of taxes they wouldn't have made deduction, exclusions, and exceptions. I make a pretty decent chunk of change every year but as far as the IRS knows I haven't made a dime. Cash and checks under $600 keep things under the radar pretty easily.
A student now but really want to weld everyday. Want to learn everything about everything. Want to become a knower of all and master of none.
Instagram: @farmwelding
Nick
Poland308
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Farmwelding wrote:
Poland308 wrote:Some people feel that not paying your legally required portion of taxes is a display of poor moral character.
If they wanted you to pay your fair share of taxes they wouldn't have made deduction, exclusions, and exceptions. I make a pretty decent chunk of change every year but as far as the IRS knows I haven't made a dime. Cash and checks under $600 keep things under the radar pretty easily.
I said LEGALLY REQUIRED. What you do when you think no ones looking, also reveals a lot about a person as well.
I have more questions than answers

Josh
Antorcha
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Poland308 wrote:Some people feel that not paying your legally required portion of taxes is a display of poor moral character.
Those people are the same idiots that have no clue, whatsoever, what they pay to have done...........Flag waving nitwits unwittingly paying to slaughter brown people and pay dictators off for the puppet govt(s) their masters control so corps can have access to the natural resources therein.
I know. That tharza sum komplificated English stuff but I felt it was needed
Poland308
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I don’t disagree that not all tax money is spent well. But I don't make those descisions. I can only hope that those who do are held responsible for there moral character.
I have more questions than answers

Josh
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This is a side gig for some extra cash thats it. Just not sure how to handle it. But i do now. Thanks..
If it is a side gig and you WANT to be paid under the table (that's up to you to decide) then be sure he pays you only in cash. If there is a check, then there is an audit trail, and sooner or later you may get bit on the arse by the tax man. If he pays you in cash, it is still illegal for you to not report it on your income taxes, but so long as you don't deposit it in your bank, there is much less of a trail for the tax man to follow. You have to decide the morality of it for yourself, as well as decide how much legal risk you want to bear. But millions of self employed people keep some amount of cash receipts off the books.
Multimatic 255
cj737
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Antorcha wrote: Those people are the same idiots that have no clue, whatsoever, what they pay to have done...........Flag waving nitwits unwittingly paying to slaughter brown people and pay dictators off for the puppet govt(s) their masters control so corps can have access to the natural resources therein.
I know. That tharza sum komplificated English stuff but I felt it was needed
I see now that CK Louis has lost his career, you're stepping right up to fill the humor void. Well done, I needed a hearty laugh today.
LanceR
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My first question would be "Are you getting paid as if you were an independent business working in the same field?"

I have never been involved in the welding business except as an observer but was the owner of a construction business for many years. One rule of thumb in the work we did was that we had to be billing roughly 2-1/2 times what we were paying in wages for a residential worker and perhaps as much a 4 times as much for commercial or industrial construction in some cases.

And it doesn't necessarily include tools (you have to bill somewhere for acquisition, wear and maintenance, too), trucks, expendable supplies not individually billed etc. A worker on the custmomer's site making $25/hour will generally be billed out at at least $60/hr might well be getting billed out at $150-160 depending on the situation when all is said and done especially for service call work.

Now, if the work is in a common employer owned workplace the labor to billing rate is still likely going to be in the neighborhood of 2 to 2-1/2 times the direct payroll cost.....

From my experience the only reason an "employer" pays under the table for more than a one-off side job is because they keep more of the money that should have gone into your pocket or have been spent to protect you. (liability, workman's comp and unemployment insurance, Social Security taxes, pension, payroll accounting etc). And there is no good excuse for ongoing payments off the books if the "contractor" doesn't have an established business identity as required locally. Even if he doesn't give you an IRS 1099 at the end of the year you are obligated to file your taxes and meet the other requirements of being in business.

One thing I'm unclear of is whether the work you are doing is related to the day to day type of business your "boss" is in or if it is a short term and temporary thing. If the former and you are not getting paid 2-4 time what his "over the table" help is getting you are being taken advantage of, especially if what you are doing involves a high degree of risk or liability.

As always this is my $0.02 and other may feel differently but my take is that if this is a recurring thing you should be giving him a periodic itemized invoice and he should be giving you an IRS 1099 at the end of the tax year. Right now you are almost certainly being severely underpaid, have a lot of personal exposures related to liability, taxes (business income, sales tax, SS tax, workman's comp, personal income tax), licensing (jurisdiction dependent) and he's pocketing the difference......


Lance
LanceR

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