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what would you do?


TeeBugg
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Recently got off of unemployment after being laid off. Started a new job with an army buddy of mine being a grease monkey. It all started going south about 2 weeks ago. Last friday he laid everyone else off but me. Due to this im basically without a vehicle as the money for my truck i was supposed to purchase is non existent. Havent gotten a paycheck in 3 weeks. And i sold my jeep thinking the truck would be paid for and on the road the next day. Ive got 2 kids and its getting harder an harder to bum rides from people.

So i wanna stick it out in hopes that it picks up again but its effecting my home life and bills and everything else. What should i do?

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Oh yeah. He also has two other guys who need to get paid for 2 weeks. They are expecting money tomorow as am i....but there is none. We are busy but cash sales pay the payroll. Everyone is using cards which that money goes towards rent and franchise fees etc....

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MOney is money...credit card transactions and cash sales make no difference into fund allocation.

 

Payroll is almost always the first thing to be paid out in a small business. Why? Because if payroll doesn't float, then no future money comes in.

 

If you aren't getting your cash, it's time to bolt. You likely won't get it...businesses like this often never recover.

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Oh yeah. He also has two other guys who need to get paid for 2 weeks. They are expecting money tomorow as am i....but there is none. We are busy but cash sales pay the payroll. Everyone is using cards which that money goes towards rent and franchise fees etc....

 

Thats where your problem is... ppl dont use cash anymore... credit is easier

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MOney is money...credit card transactions and cash sales make no difference into fund allocation.

Payroll is almost always the first thing to be paid out in a small business. Why? Because if payroll doesn't float, then no future money comes in.

If you aren't getting your cash, it's time to bolt. You likely won't get it...businesses like this often never recover.

Its set up so credit or debit card swipes go directly to paying franchise fees. But payroll should be first an foremost. Thinking ill stick today out but probably not tomorow. Sucks because my fiance an i both have our kids this weekend and broke doesnt begin to crack the surface.

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Oh yeah. He also has two other guys who need to get paid for 2 weeks. They are expecting money tomorow as am i....but there is none. We are busy but cash sales pay the payroll. Everyone is using cards which that money goes towards rent and franchise fees etc....

That doesn't make much sense to me... So  you don't get paid until enough people pay in cash??? Most people don't pay cash anymore. I almost never carry cash.. If people only pay in cash, does your boss get paid??? Does his rent and other fees go unpaid if  everyone pays in cash?  My guess in NO!!   IMHO you are getting hosed....  Good luck

Edited by ants
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Hmmm, sounds a bit fishy. I work for a very large company closely related to payroll processing.

 

CC swipes go to a bank account via a merchant. Usually franchises split or take a certain %. That should still route money to the franchisee. I'm assuming the merchant is partnered with the franchise? Meaning he has to use a specific merchant?

 

 

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sounds like your are getting the shaft. after all he did lay off everyone except youi and a few others..... so there is not money to pay out but he has to keep someone to do the work.. I would either leave right away and salvage what you can or give hima choice either pay you what is owed or undo any and all projects that you had part in untill your get your $$$$$ good luck

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I hate to hear stories like this.  I feel for you it drives me nuts to hear about people not paying their employees.  I dont care who it is they are wrong.  i heard a story the other day abt a landscaping comp in westchester where the boss was screwing the workers and one guy actually went after him and hit him with a shovel and he is paralyzed from the neck down....hahahahaha karma is a B!  Id just say u need the money or you are out...working at McDonalds for 7 bucks an hour and getting paid is better then working for 100 an hour and not getting your check.  Hope you find something else ASAP

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I've let payment go a few days if the boss runs into trouble, but I'm always confident that he will pay me. If I was told that I would not be compensated I would choke someone, or atleast put the fear of God into them!

 You could take his car/truck for collateral.

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Sounds like u work for a smaller garage. People expect to take their vehicle home and pay the repair shop when they can.  I know of a lot of smaller garages operating this way. People can't get financing at a bank, or don't want too. They think the garage should bend over backwards, and make payment arrangements. Cash flow becomes a big problem when the garage fails to see the money for the repairs. It sounds like it has caught up to your buddys shop. and it has come down to paying his vendors to keep the parts flow coming. The real warning sign is when he goes on cod with his vendors, The ship sinks. Time to bail and get another job.

Edited by landtracdeerhunter
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Hes on cod with parts place as of yesterday. We get paychecks but that comes from the cash in the drawer which gets deposited every night. No cash sales....no pay basically. As far as the credit card swipes he is an owner of a shop...but that shop is owned by a franchise if that makes sense. There are franchise fees and rent and all that jazs and the credit card system is setup to pay towards that. Honestly its a cluster right now.

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Just found out...hes not current with fees....hence why all the sales go to the franchise. Now its adding up

 

I think it's time to pull the plug on your buddy.  He probably won't recover from the mountain of debt that is piling up. 

 

You know what you need to do.

 

Good luck with your decision.....

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Time to move on man. Best of luck. You got kids and a fiance, tend bar, clean toilets, do whatever it takes. $ is $, and this guy isn't paying you.<br /><br />Sent from my PC36100 using Tapatalk 2<br /><br />

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Final nail in the coffin tonite....i dont even have a dollar to my name but he can go out and buy drinks with a girl tonite. Time to pull the plug

That's shytty, especially since he must know that you have a family.

 Did you call him out about the $ in front of his girl?

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It sounds like this is an under the table job.  An employer doesnt pay due to cash sales.  That is a line of BS unless this job is off the books.  All sales cash or credit would go to a business account with a bank, the first thing payed is payroll, then bills paid.  If its not above board and on the books there is not a whole lot one can do that I can think off.  Good luck and hope times get better for you and your family soon. 

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