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Posted: 9/9/2010 9:14:51 PM EDT
is it legal to work for store credit and not actual monetary reimbursement?

example scenario:
retired man wants to help out at store/club of interest for discounts/products rather than money

can you legally give up payment by means of money? and if so, can you be paid in terms of store credit?

Link Posted: 9/9/2010 9:19:24 PM EDT
Try posting in the legal forum...
Link Posted: 9/9/2010 9:20:31 PM EDT
Sure.

IRS will still come sniffing at some point. Being paid in services/credit is still income.
Link Posted: 9/9/2010 9:22:47 PM EDT
Originally Posted By SaintMichaelArms:
Sure.

IRS will still come sniffing at some point. Being paid in services/credit is still income.


So you would pay taxes on market value of goods?
Link Posted: 9/9/2010 9:26:29 PM EDT
Originally Posted By YukonBoy03:
Originally Posted By SaintMichaelArms:
Sure.

IRS will still come sniffing at some point. Being paid in services/credit is still income.


So you would pay taxes on market value of goods?


Don't know.

Seems like a issue that would need to be researched....market value or value that the employer looses. "Dealer cost" would seem more analogous to paying employees cash vie trying to claim standard mark up rates.
Link Posted: 9/9/2010 9:29:31 PM EDT
Originally Posted By SaintMichaelArms:
Originally Posted By YukonBoy03:
Originally Posted By SaintMichaelArms:
Sure.

IRS will still come sniffing at some point. Being paid in services/credit is still income.


So you would pay taxes on market value of goods?


Don't know.

Seems like a issue that would need to be researched....market value or value that the employer looses. "Dealer cost" would seem more analogous to paying employees cash vie trying to claim standard mark up rates.


That's good enough. Thanks.
Link Posted: 9/9/2010 9:31:47 PM EDT
I would think yes. As long as taxes, SS, medicare, unemployment insurance, etc. is paid on the earnings and receipts/sales tax are kept for the goods. No different than spending your whole paycheck on Friday. Sounds like an unnecessary CF though. I don't think I would go there were it my business.
Link Posted: 9/9/2010 9:48:56 PM EDT
The above answers are correct on the tax implications. He would need to pay tax on the amount of store credit given him. Income is defined very broadly for federal taxes.
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