Is Cash in HAnd Legal? (1 Viewer)

[SashatheMan]

as i said before is it legal? and what are the disadvanged and advantages of it?

 

[malkin86]

I believe it's legal, as long as it's receipted.

 

[fornstar]

i dont think its legal

it means ppl dont pay tax & i dont think the govt likes that idea

well thats from my basic understanding on the issue

 

[yenta]

disadvantages: the pay is about as low as u can get, u arent covered by workers comp or anything like that, u get no superannuation, and IT'S ILLEGAL. Sure you pay no tax, but here's my situation: used to work at a deli for 10 bucks an hour cash in hand, now work on a farm for 15 an hour, get taxed but will get almost all of it back at tax time, hence i am pretty much getting the full 15 an hour. I'd stay away from cash in hand!

 

[...]

cash in hands is actually legal as long as both parties provide accurate information back to the taxation office

but the urban term for cash in hands means the employer pays their employee(mostly under the min. wage) and doesn't tell the taxation office bout it

 

[braindrainedAsh]

Yep... you can be paid cash in hand, but have filled out an employment dec and be paying tax on your earnings. Then it is legal.

"Cash in hand" though often refers to where there are no records of your employment and tax is not being paid by you or your employer on your earnings. Then it is illegal.

The advatanges of illegal cash in hand are that you don't have to pay tax... it can be particularly advantageous not to have income recorded if you are claiming a benefit (e.g. youth allowance) from the government. Also, sometimes if it is syour second job the tax you would have to pay would make it pointless to work so cash in hand is better for the employee.

The disadvantages are that you can get in trouble, often you may be underpaid... also if you are trying to earn the amount to be deemed independent for YA cash in hand money is quite useless.

It depends what you are after really.... it all depends on whether you need to rort the government or not.

 

[mr EaZy]

if ur running a bizness etc, u dont have to keep track of ur money if its in hand. like u dont have to say how u earned it or how u spent it, or if it was paid to u as an income.
thats when it gets illegal.

but if u keep records, i think its ok, but cant think of any examples for this case

 

[timbk2]

because your not on the payroll, the business doesnt have to pay payroll tax, workers comp insurance and superannuation.

The employee doesnt have to pay tax if they dont declare it as income, however, they dont get any workers comp if anything happens while you work and you get no super.

 

[braindrainedAsh]

Businesses who pay illegal cash in hand don't want that money kept track of.... they want that money to be invisible, as if the business hasn't earnt the money.

If they are paying legal cash in hand then it will all be recorded on the payroll/in the books.

 

[SashatheMan]

what happens if i report them paying me cash in hand , is there anytihng for me?

 

[LazyBoy]

haha i used tog et 25 an hour cash in hand.

 

[Korn]

Sort of, it is using a loophole in taxation, so the business dont pay tax and neither do employee

 

[CrashOveride]

But if something happens to you, can't you like sue your employer because they are legally the ones at fault for not operating in accordance with the law?

 

[Korn]

No, as a cash in hand employee, u are sort of breaking the law and have no benefits and rarely can get compo

 

[noel_gallagher]

I worked for a company that ran like sideshows at carnivals and shit, so I was a carnie for a couple of days and got likr $30 cash in hand per hour. It was sweet. I woulda paid about $200 tax otherwise. cheers.

 

[SashatheMan]

I worked for a company that ran like sideshows at carnivals and shit, so I was a carnie for a couple of days and got likr $30 cash in hand per hour. It was sweet. I woulda paid about $200 tax otherwise. cheers.

lol carnie. i want to run away and join the circus

 

[choco]

in my last job I used to get cash in hand...but i got taxed still for it..i got a payslip though every two weeks..

but now i applied for another job and she says she pays like $9 / hr cash in hand on the day that you work. isn't that illegal.? maybe she does give us a pay slip i should really ask one day...

btw what is minimum wage for 19yr old? in a fast food place?

 

[Korn]

check the web under govt sites

 

[SashatheMan]

check the web under govt sites

yeh whos actually incharge of the minimum wage of each sector in the worfforce, what gopvernment organisation? please someone post a link

 

[malkin86]

http://www.workcover.nsw.gov.au/default.htm - Workcover NSW
www.dir.nsw.gov.au - NSW Department of Industrial Relations
www.lawstuff.org.au - legal rights for under 18s (not that I think you're under 18, but it's just good)