Someone helped me for 10 weeks while I was pregnant 15 hours a week for 10 weeks I was heavily pregnant paid them cash but wasn’t on the books as it was short term I know it’s now wrong but worried what the penalties would be this was February to April this year . They helped me in my home salon I’m worried about implications in the future arising .
Hi @Sumshine23,
Paying cash isn’t illegal, but you do need to report it, even for short-term arrangements.
For the person you paid, they need to declare this cash income in their tax return. Cash income still needs to be declared, and they may need to reconstruct their records or estimate their earnings using whatever info they have available.
From your business perspective, if you paid someone to work in your salon, you may have had employer obligations including:
The best approach is to get your tax affairs in order now. If you're unsure on anything, it might be best to see a registered BAS or tax agent. Another option is to phone our business line to discuss your specific situation and work out the correct way forward.
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