Paying a contractor in cash?

[PDD]

Originally Posted by bbnetworking

Obviously he is trying to avoid paying taxes, which is probably around 35-40%.

BINGO

As a former contractor and almost never being paid in cash, it is like hitting the lottery when you get paid in cash.
The only cash jobs I ever got were small businesses like restaurants and other cash businesses and of course homeowners.

Every small business that deals in cash always cheats on their taxes at least the successful ones do.

Tip for homeowners, hold back 10% retainage when job is completed until final inspection is approved or 30 days. If contractor won't agree find another contractor.
This is common practice on large projects and there is no reason homeowners can't do the same.
Protect yourself.

[Retriever]

Originally Posted by manderly6

Longest renovation job ever.

Are Manderly and I the only ones who noticed that a number of people are responding to a question that was posted ~ 3 1/2 years ago?
Do they really think that the OP is still contemplating whether or not to pay the contractor with cash?

[PDD]

Originally Posted by Retriever

Are Manderly and I the only ones who noticed that a number of people are responding to a question that was posted ~ 3 1/2 years ago?
Do they really think that the OP is still contemplating whether or not to pay the contractor with cash?

I knew it was old before I posted.
Does it really matter? Many threads are old but new viewers at lurking and sometimes information is use full.

[jrzymuscle25]

Contract with expected completion dates - 25 % deposit and 25% at 1/3 of the way through - another 25% at 2/3 and remaining 25% at completion. CONTRACT + Completion dates. Signed receipts for cash payments made for your record/protection with a witness signature. In this day and age $2500 is a nice chunk of change to save as long as you C.Y.A. (cover your a$$)!