To have a job done ('black market)

[moonlight87]

Soon I will get the key of my new apartment, which I will rent. The apartment will be delivered empty and my father unfortunately isn’t able to deal with the renovation.
My mother knows a guy who has been employed by a large do it yourself store but he has last his job because they were bankrupted and now he is on welfare. I told my mom that I feel like it is against the law to have my house done and pay him cash. She says that I am actually helping him because he is being on welfare with his wife and children. My parents told me that they heard from first hand that he delivers good work for a good price and they insist that I hire him, instead going to an official firm and pay a lot of money. I’m not sure what to do now. Maybe they are right, it is not my responsibility if I pay him cash and he decides not to tell this to the tax department right?

 

[PhiloMed]

The problem isn’t with the taxes. Many people run independent businesses and are paid cash. You are correct in that how they choose to financially run that business is not really your problem.

The problem is if he is actually running a business or not. Is he insured? What if gets injured on the job? Most employers would have a worker’s comp program for their employees if they should get injured while doing construction. Now if he gets injured and was not actually insured then who does this fall on? You?

Is he going to have other people doing work with him also? Many home projects require more than one person. Who are they? Is he also bonded in the event that you notice some items missing from your home?

These are all important questions to ask.

 

[moonlight87]

Thanks for your advice. I would like to add that, renovation wasn’t really the proper word for what he will do. Basically he will place a laminate floor, and eventually he will place curtains and make a closet. I’m almost sure that he doesn’t run a firm at all and that he will do the job by himself.
I told my parents I don’t feel OK about this but my parents have their own mind on this because at the end my apartment is ‘their project’. I think I will pass this whole thing on to them and let them sort it out.

 

[schaeffer]

I don’t think the term “black market” applies here. The man isn’t stealing anything and selling it on the side. The man isn’t cheating any employer out of their due.

 

[thewanderer]

I agree. Morally speaking there is nothing wrong with paying this man cash to work on your house. It is not your responsibility to ensure that he reports all of his income to the IRS, that is his responsibility. Maybe he will maybe he won’t, but either way, not your problem.

What is your problem are the practical issues brought up already on this thread. Can he sue you if he is injured on the job? etc.

 

[EasterJoy]

This isn’t quite “black market,” not unless you have someone doing work that requires licenses and permits and you are trying to duck all of that.

By “pay in cash,” you mean you have to pay in greenbacks, instead of by check, in order to directly cooperate with a deceit? Or do you mean that you will be paying him like an independent contractor in the knowledge that he probably will not report his earnings as he ought to do?

Filling out his tax forms, paying quarterly taxes, and reporting one-time income as required by the welfare authorities is not your duty, provided you don’t directly encourage him to violate the law. Refusing to pay him in a way you’d never pay a total stranger in order to help him in a deception is your duty. Do not try to play stupid, as if you always pay debts of over $1,000 in cash when you actually never do and never would, except that you are being asked to help someone else evade the law. If your parents want to pay this guy, it is not your business to worry about how they pay him. You ought to be clear that you’ll have nothing to do with running a scam on the government.

A contractor is licensed and bonded in order to protect the customer. Since you are renting, look at your rental agreement to find out if you are required to use licensed and bonded contractors. If you are, then follow the contract. If not, ask your dad who gets to pay if this guy messes up the job or sets the building on fire and the apartment owner sues you for damages and breach of contract. What if the man hurts himself and sues for damages? How is that covered? If you are not too old, your parents may be able to include your apartment on their homeowner’s policy, BTW, which could save you a ton and make high coverage attainable. With the home policy, too, you need to know what is and is not covered before you invite anybody in. Line up your insurance before you line up your movers!!

Also, if you are paying for this work yourself, you need to have a contract specifying what is to be done and what you are expected to pay. What happens if the work is not done correctly? What if it is not done on time? What if the place is torn up and then nothing is done after that? What if he does something he claims you asked for that you did not authorize? (The contract ought to require change orders be in writing.)

If you have nothing on paper, you could wind up in small-claims court or even a higher civil court when the work is done and his memory about your agreement is different than yours. I do not know how many attorneys I have heard say that most stupid lawsuits could have been avoided if just one party had insisted on a simple industry-standard contract before the work started. This is why no one in his right mind runs a business without a standard work contract. Lawsuits are a stupid waste of money, and usually avoidable.

Protecting yourself from lawsuits, BTW, is an important part of protecting your credit history. Don’t neglect it. Get on the renter’s section of your state and city web sites. The chances are that your tax dollars are paying for someone to answer these questions that people without the means to go to an attorney have: that is, when do you need a permit to get work done on a residence, what work may only legally be done by a licensed contractor, and so on…

 

[henpecked]

injury liability is a big deal. and his work meeting applicable codes, i.e., are local permits required. You say you are renting the apartment - is the landlord ok with the work?

 

[EasterJoy]

injury liability is a big deal. and his work meeting applicable codes, i.e., are local permits required. You say you are renting the apartment - is the landlord ok with the work?

I’d think replacing flooring and building a closet would require the approval of the owner of the building or the owner’s agent. I would want that in writing for any changes I couldn’t undo easily. Otherwise, the owner could later charge the tenant for having “damage” to the original condition of the unit “repaired.” (Be very sure you will be paying to have a licensed and bonded contractor do that work!)

It is usually expected that curtains can be installed without permission; the understanding is that if the landlord doesn’t like them when the tenant moves out, the tenant will have them removed and will fill the holes left.

Read your contract, though, know applicable state, county, and city rental law, and follow those. It doesn’t matter what usually applies somethere. What matters is that you follow what you agreed to when you signed your contract and that you observe the laws that apply to renters where you are renting.

 

[PaulGH]

Soon I will get the key of my new apartment, which I will rent. The apartment will be delivered empty and my father unfortunately isn’t able to deal with the renovation.
My mother knows a guy who has been employed by a large do it yourself store but he has last his job because they were bankrupted and now he is on welfare. I told my mom that I feel like it is against the law to have my house done and pay him cash. She says that I am actually helping him because he is being on welfare with his wife and children. My parents told me that they heard from first hand that he delivers good work for a good price and they insist that I hire him, instead going to an official firm and pay a lot of money. I’m not sure what to do now. Maybe they are right, it is not my responsibility if I pay him cash and he decides not to tell this to the tax department right?

I live in the United States, and I have never considered it a problem to pay an independent handyman in cash to do home improvement work. As I understand it, he has the responsibility to report that income to the IRS when he files his income tax forms. (Though maybe there is some legal restriction that I am not aware of.)

But my situation was for my own house, and you say that you are renting, so that is a different situation. Also, your profile says that you live in Europe, and the laws might be more restrictive there.

I would think that since you are renting, you would need to have any renovations pre-approved by your landlord, unless renting works differently there than it does here. Also, I wouldn’t think that it makes sense to put much money into renovations if you are renting, unless perhaps if you know you will stay there for a long period of time.

I don’t see a moral problem with paying someone in cash to do work, if he has the capability to do it. But again, I don’t know anything about the laws where you are, and I also don’t know what your landlord thinks about these renovations.