Paid salary in cash

I don't think it's illegal, but it is inadvised. If there is a dispute with your employee, it may be difficult for you to prove just what you paid them, and that whatever you paid for withholding taxes was the correct amount.

There are payroll services that can do what you need. For small businesses the services can be much more cost effective than trying to do payroll in house, because of economies of scale.

It depends on your state labor laws. In California, there is no prohibition on wages paid in cash, but a paystub documenting all the withholding must also be issued, whether pay is in cash or otherwise. If you can show timely provided paystubs, that would go a long way toward proving the correct payments.

It wasn't that long ago that cash payroll was the norm. A little brown envelope at the end of the week listing gross, deductions and net, and containing currency and coin down to the penny. While today it is unusual, I can't imagine it being illegal.

paultry wrote: : On 2/8/2014 17:56, Anon wrote: : > I paid salary in cash to employee Over last year, paid all payroll taxes, issued w2 etc. Does it make illegal transaction?We are still setting up and business is not constant so no payroll service so far.This is how it worked. : > : It wasn't that long ago that cash payroll was the norm. A : little brown envelope at the end of the week listing gross, : deductions and net, and containing currency and coin down to : the penny. While today it is unusual, I can't imagine it : being illegal.

Iremember those little brown envelopes very well. My first job after college netted me $47.some cents from my $60 a week salary. Each week they came round with tall the envelopes accomanied by a guard with a pistol in a holster on his waist and handed us our envelpes with the deduction slips andthe money in them. It was alwasy n Fridays, making that day even better than the bst workday of the wek.

Happy memory.

Wendy Baker

Wow, I did not know that!!

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