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One additional feature for paying in cash, is from the business side - a lot of small businesses declare only a part of what's paid in cash, and the rest is kept 'tax free'.

While it breaks the law, I kind of feel sympathetic to it, given how much the law tends to advantage big companies.



Paying tax isn’t a big company vs small company thing. A single company not paying tax isn’t that bad directly but it can be infectious. “They don’t pay neither should I” attitude is a problem.


I know, but then you look at effective tax paid by big companies and it makes you wonder.


This is more important for tips. If you pay a tip by card, the tipped worker will have to declare the full value of the tip as income. If you pay by cash, they are supposed to declare the full value of the tip as income, but what's actually reported by the business to the IRS is 15% of sales. Any cash tips over that amount you can probably get away with not reporting.




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