Why are my wages in cash?

shamtastic

I work in a convenience store and of late many members of staff have expressed anger at being paid cash in an envelope rather than the money being put straight into our bank accounts. Is this unusual in 2011? Obvious advantages are not having to go to the bank and less chance of losing your wage packet. I plan to discuss this with the owner, so can anybody fill me in on why he choses this method, although I presume the bank charge a bit but would it be substantuial enough to deter this method. The wages are properly audited etc. through the books so in that respect it's fine. Thanks!

irish_goat

How do you know they're through the books? Tax avoidance is the most obvious answer here.

shamtastic

Well we get proper wage slips and I know there is an accountant who deals with them from time to time?

whydoibother?

Do you get payslips and if so are you happy with what they say in relation to tax?

If that's all in order and you're happy to be paid cash, don't worry.

Edit: you beat me to it.

As long as the tax bit's okay, i wouldn't worry.

Victor

It means the money doesn't need to be brought to the bank and cheques don't need to be issued.

amiable

Seeing as its a shop the owner probably likes to use the cash to pay staff.
Its dangerous IMO to jump to conclusions without any evidence of anything illegal.

No harm in asking your employer

naoise80

It's not at all obvious that the reason is for tax evasion.

If it a convenience store, then I presume most of the takings are in cash.
It is very expensive to lodge large amounts of cash in the bank, so my guess is that wages and any other expenses that can be paid in cash are done so to avoid bank charges.

whydoibother?

I was paid by cheque in one of my summer jobs which I found inconvenient as I worked during normal banking hours and would often have to save up several weeks of cheques before I could get to the bank. I just put up with it though.

Eoin

naoise80 wrote:

It is very expensive to lodge large amounts of cash in the bank,

And doesn't it cost about 50 cents tax per check as well?

whydoibother? wrote:

I was paid by cheque in one of my summer jobs which I found inconvenient as I worked during normal banking hours and would often have to save up several weeks of cheques before I could get to the bank. I just put up with it though.

Not that this is any use to you now, but you don't need to lodge a check during bank opening hours. I just stock up on lodgement slips and post them.

Ken.

Before talking to your boss i'd ring up revenue and see if your tax and prsi are in order. If they are then theres no problem. (if thats what your worried about)

orchidsrpretty

I get paid in cash aswell and find it handier then getting a cheque or lodged into my bank account. There is the worry of losing it; just don't carry it around with you!

ScouseMouse

Perfectly normal. Bank charges for a business can be substantial.

Why would I, as an employer, lodge five thousand euro into the bank. Then write 10 wage cheques for my employees?

The lodgement would be costing me 50c per hundred. Then each cheque has a tax payable to the revenue, then the bank will charge me for each cheque written.

Add all this up for 10 employees and then work it out over a year and you see why.

Its common sense really.

The 50c is only an example, I am unsure of the current rate. Its a great way of reducing expenses.

krd

superscouse wrote: »

Why would I, as an employer, lodge five thousand euro into the bank. Then write 10 wage cheques for my employees?
.

Because you don't want to get robbed.

Back when a lot of people were paid in cash, there were payroll robberies every Friday.

If you're paying wages in cash - the bad guys will eventually get wind of it, and they will come a robbing.

ScouseMouse

krd wrote: »

Because you don't want to get robbed.

Back when a lot of people were paid in cash, there were payroll robberies every Friday.

If you're paying wages in cash - the bad guys will eventually get wind of it, and they will come a robbing.

If you take five thousand euro and its in your safe, then you still have a security issue. Thats what time locks are for.

I have not heard of one payroll robbery in the last five years, from any shop in dublin - unless you have ???

wmpdd3

I'd be more worried about the staff room being robbed, as every knows what day each person working has an amount of cash in their bags.

Wouldn't a bank transfer be cheaper for the shop keeper?