Newbie Here with a Question Regarding Cleaning Help!

I have some hired help that insists on cash also. I have no problem with this, but I told her, up front, that I keep records on my computer, on paper and I report what I paid out.

I would personally never pay anyone cash for any service. I pay by cheque because I like there to be a proof of payment. I would also never dream of asking for cash either.

There are two reasons I can think of that she may want cash. First would be so she is getting paid under the table. Second may be that she doesn't have access to a bank account. I know many very low income marginalized people do not have bank accounts or even the ID needed to open a bank account. Those people tend to rely on those cheque cashing/payday loan type businesses that take a large portion of the cheque for their service.

Her reason might also be related to taxes...

No, it's not unreasonable. She will either accept the checks when you need to use them, or you can find someone else. Cleaning isn't rocket science, and there are plenty of house cleaners out there.

Frankly, I would not personally go out of my way to help someone avoid paying taxes, i.e. make a trip to a bank vs. writing a check. If I have the cash, fine. But if I don't, deal with it, tax evader.

The employee does not get to decide how they are paid, the employer does. If you want to pay by check, and I advise that you should, you pay her by check. I've never had an employer, aside from a babysitting job when I was a teen, pay only in cash. Checks aren't just convenient, they are also a way to track how you pay your employees. What if, one day, she decides to insist that you never paid her? How do you prove that you did? How do you prove to the IRS that you have a paid employee? They're not going to accept your ATM receipts, and she can just deny it.

Begin paying her by check. Her bank account issues are her own, not yours. Anyone with a doggone $250k home has a bank account. If she doesn't want to do a check...pay her via PayPal, which you can also use to track payment history and use to prove that you paid her.

She doesn't have to accept any form of payment that she doesn't want to. She can insist on being with fattened calves if she wants. If you mean to do business with her, you would have to pay her in her perferred format, or risk being turned down as a client.

Best,
F. B.

personally, I am not that fussed either way.

yeah, i'd be a bit put out by this too. she's almost certainly gaming her taxes, not that it's any of your affair. (do you give her a 10-99?)
i'd just tell her that you'll accommodate her up to a point, when it's do-able for you, but that sometimes she's just going to have to suck it up and deal with the check. they're really not that big a hassle to cash. if she doesn't like it- well, i'm sure you can find other cleaners.
khairete
S.

Welcome to the site and I hope you find it useful!!!

Ahhh yes.... the person who wants cash. When someone practically demands cash from me, I immediately believe they are scamming the government somehow or another by avoiding paying taxes. Cash is not traceable so people love cash!!

I believe an occasional check here and there should not be a big deal. You have worked with her on her request for quite some time and she should know you are working with her but as a mom with a busy family, sometimes you might not be able to run by the bank just for her.

What do I do? I keep a stash of cash on hand, well hidden and I use it for tip money, girl scout cookies, etc.

I have had window cleaners, housekeeper, etc that give me an invoice to pay for the services and I will write a check for that BUT, I give the people who did the service a tip from my cash jar. That way, I know they got the tip money.

We have always paid our cleaning people by check and I think you are totally justified paying by check occasionally. Or ask if she wants to wait till the next week for cash since she comes every week. I've done that with people in the past. Then their option. And if she doesn't like it, I'm sure you can easily find someone else. The idea she doesn't have a bank account but owns a home seems ridiculous. I'm sure she's trying to slip money under the table. That alone might be reason enough for me to find someone else. You're paying her good money.

And Gamma G - your post is too long to read it all but in terms of K. making her pay taxes, no she can't but she can try to avoid making it easy for this woman to not pay taxes. I think it's actually a duty to not facilitate someone avoiding taxes. Maybe she's not but writing a check makes it much more likely she's not. And regardless, the question wasn't about trying to get someone to pay taxes.

So you have someone who does work for you (occasionally, but still, on those days you are her "boss"), who without any real discussion changed the payment terms (cash only), who you say does an "OK" job at cleaning, who has the option to simply cash your check at your bank with no real hassle, but wants to create extra work for you by making sure that you have cash on hand each time she cleans. Hmmmmmm . . . I know it is really hard to find someone who does a decent job cleaning AND actually shows up (believe me, I just fired my cleaning person for not showing up AGAIN - what a pain), but really, she isn't doing you a favor. She is working and receiving pay as per the original employment terms. Honestly? I would start looking for someone else. Also, if you really don't have any cash that day, I would just text her that morning and say "I didn't have time to get to the bank today so I will have to pay you with a check - if that doesn't work for you, let me know not to expect you to work today."

Good luck! (and lucky you - I am still looking for a replacement person) :)

I have several thoughts about this, as well as two ideas to consider:

(1) I've had four different cleaning ladies over the past 25 years who came weekly. ALL of them were usually paid by check. Two were Mexican immigrants with green cards who apparently managed to open bank accounts. One of these four was actually a team of two ladies who handled splitting the pay on their own. None ever asked to be paid in cash.

(2) If she owns a $250,000 house, how is the mortgage paid? Probably not in cash. Most mortgages are serviced somewhere out of town. It's very, very odd not to be able to open a bank account, especially for someone who also owns another business.

(3) Even if she has legitimate reasons not to be able to open a bank account (doubtful), one of you is being inconvenienced by a trip to the bank. Why should YOU have to be the one to handle that? Presumably she has other payments from other houses she cleans, as well as the side business, so it would make sense for her to have a bank account and take her deposits once a week or so.

(4) IDEA: You could transfer her pay directly into her bank account online with only a little more time than it takes to write a check. It's easy to set up through most banks. Then, she can withdraw the money or write checks (or use a debit card, anytime she'd like.

(5) ANOTHER IDEA: You could get a Visa gift card for her and reload her pay onto it online every week.

I hope you can find something that works for both of you.

Since the original agreement didn't include this, and since when she asked, you did include the caveat that it might not always be feasible, I think you're fine occasionally giving her a check. Worst case she can go to a check-cashing place, it's like ten or fifteen bucks I think. But that is on her since she's the one that doesn't have a bank account. As the employer it's not on you to make sure it's easier on her. You just need to pay her.

PS, if she goes to the bank that the check is written on, she should have no problem at all cashing it. (Your bank, I mean.)

If it would help her avoid IRS taxes, that's a problem in your participation. She may not be declaring income. If she's not a citizen and doesn't have a green card or work visa, that's another thing she may be ducking.

She changed the terms after she started working, but you agreed to it, so I think you both have to reach an accommodation/compromise.

If she's trying to hide income from an abusive husband, you might want to help out and assume she is reporting it on her individual tax return. This is a less likely possibility, but one you should consider. Since you're heard her arguing with/about the IRS, I think it's unlikely in this case, but one you should consider in the future.

If she has a smart phone, she can get the free mobile app from her bank, take a picture of the front and back of the check, and send it securely right into her account, where it should clear the next day. She's right that many banks charge a fee to cash a check written on their accounts - I think it's a rip off and I resent the hell out of it. If she's going from bank to bank with checks from different clients, it's a pain and it adds up her fees. Plus many of them delay you with a sales pitch on why you should be with them and not your own bank.

Can you keep a stash of cash available for one week's cleaning, just in case?

And do let her know that you put your cleaning payments to her on your household expenses, so if anyone gets audited, it's not a secret.

Otherwise, there are other cleaning people in the world.

She is evading taxes, that's why she wants to be paid in cash only.

That's illegal--rampant, but illegal.

I'd find someone else--someone bonded and insured. They're more likely to be following the rules.

I would be ok with cash as long as she gives you receipts. I have watched enough Judge Judy to know that paying in cash without receipts is never in your best interest. At least with checks, you have proof of payment in case she ever gets miffed with you and tries to take you for a ride.

I just saw this, and I am throwing in a couple of my thoughts.
Despite the fact that she has a house she might be in a situation where they could garnish her wages...yes, she's a woman but perhaps back child support? or foreclosure on that or another property? behind on car or boat payments? or is she illegal and got a little nervous after a few checks? (yes, back to she owns a house and there are a lot of people who own homes that are illegal...is she trying to leave her husband and stashing it away so that doesn't get split up? gosh I just keep thinking...very interesting...I know you have all sorts of replies but this is truly kind of amazing

The main point I will make is this, it isn't your job to make her pay taxes or not. It is your job to pay her the money owed her and if she hides that income it's on her. Not you.

Also, if she takes a check to your bank and cashes it there is no paper trail to connect her to any hidden income. If she takes it to her own bank and cashes it or deposits it they have a record of her bringing a check in and getting money from someone. That's a paper trail.

So it's silly to write her checks to try and force her to pay taxes, it doesn't work that way.

If you have a plumber come to your home and you write them a check there is a receipt. They write your bill out on their paperwork and there is a written paper trail even if they take the check to your bank. They are a registered business and have a tax ID, a housekeeper does not. She is completely responsible for her own taxes.

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Most people pay in cash that I know who have cleaning help. Everyone I ever cleaned for left the cash on the counter with the list of extra things or specific things they wanted me to work on.

I understand that this person might be wanting to avoid taxes but that is on them and not on you.

I don't have a checking account. I don't have any credit cards either. I use cash for transaction and I can get a money cash card if I need to order something online No interest and no fees.

When I get paid via check for anything I go to their bank to present it for payment. There is one bank in town that charges me a fee, percentage of the amount, and I refuse to take checks written on that bank.

If she takes your check to your bank and your bank cashes them no fees or anything there is NO paperwork connecting her to any income source so she can still avoid paying taxes on any unreported income. So paying her via check or cash makes zero difference to taxes and legal stuff.

IF your bank charges her a fee you might consider paying her a bit extra to cover that fee. I was given a check for several hundred dollars to cover costume items I had ordered for recital, wigs, tights, and all sorts of stuff. I needed the money to pay myself back and my boss wrote me the check.

I went to his bank, that one bank, and they wanted to keep over $20 for cashing the check. It was horribly busy and they had a long line behind me but I pulled out my phone and called my boss. I told him that his bank wouldn't cash his check for the full amount and what did he want me to do. Did he want to give me another check that would include the fee or did he want to give me cash to cover the fee and the charges or did he want to cash the check then get additional cash from him to cover the fee.

Since I was at the desk it was still my turn and everyone was waiting and getting frustrated. I didn't care. They don't charge the people who cash checks on the bank when they deposit them through another bank, they shouldn't charge anyone.

He decided for me to bring the check back to him and he paid me cash for the whole amount.

Again, it's not your business if she pays taxes or not. Period. So stop thinking on that. It's your job to pay your employee. She has stated she can't get to the bank and has to wait in line and it's inconvenient.

You know she's coming and have a week or at least a day or two before she's coming to make a point to go get the money she will be paid. Not having time is an excuse....you could write a check but she is having just as much trouble getting to the bank as you are.

If she wants to be paid in cash then you do have a choice. Either fire her or go get her cash. I'd be mad if I had informed you that I could no longer accept checks and you decided you were not going to pay me the way I needed. I'd tell you to keep the check and I'd be back by in an hour or two for my pay. Then I'd be nice but I'd quit.

I hate dealing with banks. I pay taxes on my income from my part time jobs. We always file taxes and put my income on too. We never have to pay any taxes on it due to it being so small.

I'd refuse to be paid by check from that bank that charges me. I just think they're moneygrubbers.

Question, you really pay her hundreds of dollars to clean? Really? Wow. The most I ever made for cleaning was $20 per hour.

I don't mean to be rude - and I get that you are busy (totally relate) - but if I have an agreement with someone I generally stick to it.

If you agreed to pay in cash, then I think you should make sure you have cash on hand. When we employ people (sitters, snow plows, etc.) we just decide terms ahead of time and both sides stick to it.

As for why she wants cash ... personally (this is just my opinion) that's her business. I don't usually question people past just asking what works for them.

Good luck :)