# Why pay more when paying with a check?



## debodun (Jun 4, 2020)

I had a roofer here yesterday for an estimate. I asked if he'd take a personal check. He said he'd prefer cash, but he'd take a check but there would be a 7% charge added to the estimate. I asked why and he said "Tax.". Why do I have to pay tax using a check and not with cash?


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## Pinky (Jun 4, 2020)

That's utter B.S.


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## RadishRose (Jun 4, 2020)

He can pocket the cash without claiming the income and therefore avoid having to pay tax. It's called "under the table". If there is a check, there is a record of that income and he'll have to declare it.


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## hellomimi (Jun 4, 2020)

He is avoiding a paper trail so he don't have to pay tax on that income as RR said.


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## JB in SC (Jun 4, 2020)

Not only that, there is no way of getting him to fix problems if they occur.

Roofers are notorious for shady business. Get three quotations, ask to see their contractor's license and bonding documents. If they can't produce them find someone else.


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## JaniceM (Jun 4, 2020)

JB in SC said:


> Not only that, there is no way of getting him to fix problems if they occur.
> 
> Roofers are notorious for shady business. Get three quotations, ask to see their contractor's license and bonding documents. If they can't produce them find someone else.



Yes, what he ^  said.

I'll add:  I worked for one of these creeps years ago, and did not get paid.  His excuse was he couldn't cash a check on a Saturday, but then disappeared altogether.  Turned out the phone numbers on his 'business card' were no longer in service, and there was no address to track him.  
So if I can contribute this advice-  make sure you also get it in writing that the person you hire is the person who will actually do the job..  so he won't 'hire' other people to do the work and then stiff them.


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## debodun (Jun 4, 2020)

He got 4 stars on Home Advisor.


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## Knight (Jun 4, 2020)

debodun said:


> He got 4 stars on Home Advisor.


What did you get out of the advice & experience of those that gave great reply's?


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## Ceege (Jun 4, 2020)

Drive around your neighborhood and look for roofing company signs posted in people's yards.  Expecially look for some that are the same on the same block.  It's means that a good experience was passed on by word of mouth from neighbor to neighbor.


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## hellomimi (Jun 4, 2020)

debodun said:


> He got 4 stars on Home Advisor.


That means nothing; those ratings can be rigged.

What matters is how they conduct their business with clients. Best to stay away from shadey creeps.


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## debodun (Jun 4, 2020)

A paving contractor ran an ad in the pennysaver about 15 years ago. It said that he'd blacktop any 1000 sq ft surface for $1000. That just about what my driveway is. It sounded like a good deal so I hired him. When he presented me with the invoice, it was for $1600. I pointed out that his ad said $1000. He replied that that was just for the new blacktop. It didn't include removing the old blacktop, grading the area and putting crushed stone down. Later I heard he was in jail.


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## Myquest55 (Jun 4, 2020)

We recently hired a contractor - referred by another contractor that we had used.  We discussed payment and he said he would take a check BUT it could take up 2 weeks for it to clear.  If we wanted him to begin work sooner, an ACH transfer would be better (it is free from our credit union - kind of like a wire transfer, which costs $$).  It only took 2 days to post in his account.  He needed the deposit to purchase materials and be able to pay his helpers -understandable.  This guy turned out to be THE BEST!  They worked hard and he kept us appraised of the progress along the way and finished the job as close to the original schedule as the weather allowed.  

Taxes are a phony issue!  Keep asking around!


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## Myquest55 (Jun 4, 2020)

debodun said:


> A paving contractor ran an ad in the pennysaver about 15 years ago. It said that he'd blacktop any 1000 sq ft surface for $1000. That just about what my driveway is. It sounded like a good deal so I hired him. When he presented me with the invoice, it was for $1600. I pointed out that his ad said $1000. He replied that that was just for the new blacktop. It didn't include removing the old blacktop, grading the area and putting crushed stone down. Later I heard he was in jail.



You HAVE to ask a lot of questions! Make sure you all understand what you're paying for.  As they work - make them show you what they've done.  Take an interest in their work and try to understand it - they appreciate that and will do a better job!  A good contractor will want to please you so you will refer him.  That attitude has worked well for me since I was a young single gal in the 1970's.


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## C'est Moi (Jun 4, 2020)

debodun said:


> I had a roofer here yesterday for an estimate. I asked if he'd take a personal check. He said he'd prefer cash, but he'd take a check but there would be a 7% charge added to the estimate. I asked why and he said "Tax.". Why do I have to pay tax using a check and not with cash?


Check or cash, do NOT pay for the entire job up front.  Pay half when the job begins and the remainder when the job is completed to your satisfaction.


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## debodun (Jun 4, 2020)

Here is the contract he gave to me.


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## debodun (Jun 4, 2020)

I sent an email to the name and address given on the letterhead and it was answered by another person in another business, Comfort Windows.


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## hellomimi (Jun 4, 2020)

debodun said:


> A paving contractor ran an ad in the pennysaver about 15 years ago. It said that he'd blacktop any 1000 sq ft surface for $1000. That just about what my driveway is. It sounded like a good deal so I hired him. When he presented me with the invoice, it was for $1600. I pointed out that his ad said $1000. He replied that that was just for the new blacktop. It didn't include removing the old blacktop, grading the area and putting crushed stone down. Later I heard he was in jail.


You don't have a contract prior to starting the project?




debodun said:


> Here is the contract he gave to me.
> 
> View attachment 108147


Is that invoice after work was finished? If so, you cannot present the ad as evidence of Agreement if the work was more than what it says in their ad. IOW, you lost your bargaining power here.

You should've asked for clear description of what they will do and amount they will bill. Since project has not started, both parties can tweak the contract until they both agree.


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## debodun (Jun 4, 2020)

hellomimi said:


> You don't have a contract prior to starting the project?
> 
> Is that invoice after work was finished?



No it is an estimate. No work has been done yet. Would a BBB listing be better to find a good roofer? I looked up this business and it was not listed with the BBB.


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## Don M. (Jun 4, 2020)

debodun said:


> I sent an email to the name and address given on the letterhead and it was answered by another person in another business, Comfort Windows.



Scratch this guy off your list...he sounds like one of those who descend on a neighborhood after a serious storm, and rips off anyone he can.  His desire for cash is a sure sign that he will not declare any such income on his taxes.  AND, don't pay any attention to these "online" surveys, such as Home Advisor....many of them post bogus reviews to lure people in.  Your best bet is to look for local people who have had contract work done, and get their opinion.


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## OneEyedDiva (Jun 4, 2020)

You pay more for using a check because there's a paper trail as to how much he made for the job. When you pay cash, there's no way for the government to track it, thus he does not have to pay taxes on that money. In other words, cash makes it easier for him to fudge his books.


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## Geezerette (Jun 4, 2020)

I just don’t understand why, when most communities of any size have well established businesses that do roofing, paving, painting, all sorts of things a home owner needs, with good history and valid references,  that a person   would turn to classified ads or some fake service like home advisor, which was an offspring of “angie’s list” to bleed even more people. Don’t trust BBB either. People have to pay to get their listings, and they’ll do nothing to solve customer complaints, taking the side of their listee. Reputable firms will work with the customer re payment. Most won’t touch cash, but will accept checks, credit cards or even work out a payment plan. Tax? Check your state or city’s regs on taxes on home maintenance projects. Sorry, but I just want to tear my hair out when I hear of intelligent people even considering to try to work with those crooks.


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## OneEyedDiva (Jun 4, 2020)

Geezerette said:


> I just don’t understand why, when most communities of any size have well established businesses that do roofing, paving, painting, all sorts of things a home owner needs, with good history and valid references,  that a person   would turn to classified ads or some fake service like home advisor, which was an offspring of “angie’s list” to bleed even more people. Don’t trust BBB either. People have to pay to get their listings, and they’ll do nothing to solve customer complaints, taking the side of their listee. Reputable firms will work with the customer re payment. Most won’t touch cash, but will accept checks, credit cards or even work out a payment plan. Tax? Check your state or city’s regs on taxes on home maintenance projects. Sorry, but I just want to tear my hair out when I hear of intelligent people even considering to try to work with those crooks.


You're right about BBB. I had read their history awhile back..that they take payments as you stated and a listing there is no guarantee that the business is a good one.


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## Butterfly (Jun 4, 2020)

Have you checked the status of his contractor's license?  If he doesn't have a valid license, don't touch him with a 10 foot pole.  Call up your state licensing board and ask about his license (ask about the man personally AND the business name), and while you are at it, ask them about any complaints they've the have received about the business.

And, if he is trying to get cash payment to keep the work off the books and cheat the tax man, there's certainly no reason to believe he wouldn't cheat YOU.


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## fmdog44 (Jun 4, 2020)

debodun said:


> I had a roofer here yesterday for an estimate. I asked if he'd take a personal check. He said he'd prefer cash, but he'd take a check but there would be a 7% charge added to the estimate. I asked why and he said "Tax.". Why do I have to pay tax using a check and not with cash?


Roofers are known to be among the worlds's most honest people when they are out of prison.


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## JaniceM (Jun 5, 2020)

debodun said:


> I sent an email to the name and address given on the letterhead and it was answered by another person in another business, Comfort Windows.



That's not a good sign...


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## debodun (Jun 5, 2020)

Maybe the roofing business is a subsidiary of the window business.


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