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Noel

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With recent chat here about ALMs sentencing and questions about how competition cash prizes are handled I have another money related question.

How does your studio handle payment for things like private lessons. At the former "studio" it was strictly cash only, as many random other things were like 'suggested' coach's gifts, fees for attendance at drop in classes, ticket fees for local exhibitions, certain "spirit wear" items, etc. .

If you started doing the math it was a great deal of money and I'll never know if any of it was legally reported as income. Wondering how many other studios have cash only rules for certain payments but not others.
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meatball77

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I can't imagine even carrying that much cash on me.

We're required to have a CC on file at our studio.  They charge us for things as they come up and for privates monthly (and ask for approval for anything that's not obvious).
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Noel

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I wish former "studio" would have done that. It's a major pain in the rear to always have cash.

Her acro instructor also works cash based, so annoying. Different location and owners altogether but same policy.
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tendumom

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Reply with quote  #4 
We usually paid with cash or check for privates. At the first studio where she did them now and then, the teachers were paid directly for them, not through the school. Since then, we always did it the same way, though I am not sure what dd did with the few she did this winter.
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Angel2228

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Never.
Only for bring $5 to chip in for pizza. We can pay cash, debit, credit, or cheque. I've offered to pay the teacher directly for privates, and it's always a no. Goes through the office with a receipt.
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threedancingdaughters

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Reply with quote  #6 
We can pay cash, check, card. Always get a receipt for everything, even if it's only a couple bucks for eyelashes or tights. Cash only seems weird to me.
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dave9988

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Reply with quote  #7 
It depends.  We most certainly do have a CC on file with the studio.  Very handy for incidentals & other odd studio related fees.

Privates - and I'm not talking about rehearsals or choreo for solos - are frequently handled on the side.  The teacher will check for studio availability, of course, but then often take cash or check.  Frankly, I'm not sure the studio would run those charges through our card or not.  I've signed up DDs for very few privates, and always paid cash.

The paperwork and payments required to legally hire a part-time nanny and/or properly handle "side income" (both income & sales tax) is so far beyond absurd.  I just can't even.  So whether they report a few bucks on the side or not, I don't really care. 

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joriebelle

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Reply with quote  #8 
Privates are separate from the studio so I pay cash or check directly to the teacher
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heidi459

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Reply with quote  #9 
I would only be concerned if they refused to provide a receipt if asked.  I don't think cash is in itself some sort of red flag.  There could be good reason.  If it had been me and I was curious, honestly?  I would've just asked.
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Jacaranda

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Reply with quote  #10 
Hmm, that sounds dodgy. Insisting that things are ONLY paid for in cash is a sign that they are not planning on declaring the income so they don't have to pay tax on it.

At our studio they prefer to avoid cash if possible because it is harder to track. If a client comes in and insists they paid and it isn't recorded, it is almost impossible to prove one way or another if the mistake happened while handling cash.
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jwsqrdplus2

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Reply with quote  #11 
Cash or check for privates directly to the teacher.

Anything through the studio is cash, check or card unless specifically requested (like cash only for recital meals).
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dancer1234

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Reply with quote  #12 
Depends on the studio... I know at our old studio, we were given the option, if you pay cache the cost was reduced then if you payed by credit or went through the office.  There was a set fee of $30/half hour and some teachers were giving you half hour for $20 if you paid in cash.     The SO was not around that much so I think the teachers were taking advantage of the system, because I am sure she only paid them $12/hour and kept the rest.

Next studio they allowed teachers to rent space at a very reasonable cost and so teachers would have their own fees for privates. Some were $30/hour and others were $50/Hour.  


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heidi459

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Quote:
Originally Posted by Jacaranda
Hmm, that sounds dodgy. Insisting that things are ONLY paid for in cash is a sign that they are not planning on declaring the income so they don't have to pay tax on it. At our studio they prefer to avoid cash if possible because it is harder to track. If a client comes in and insists they paid and it isn't recorded, it is almost impossible to prove one way or another if the mistake happened while handling cash.


Not necessarily though.  It'd be unfortunate to make that assumption and be wrong. Concerned something might not be on the up and up and that a cash transaction may come back to bite you in the future?  Why not just ask for a receipt?  It's really as easy as that. 


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Dancingemu

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Reply with quote  #14 
Our private lessons are paid through the teacher not the studio, though I don't always feel comfortable handing over $25 cash to them each time. I also have a hard time paying for the private lessons when we don't see any progress and what they said they would work on isn't what they work on, but that's a different topic. lol
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elastigal

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Reply with quote  #15 
Same as others, cash or cheque directly to the teacher. Privates for tech, solos or duos are between the family and the teacher, the studio has no involvement except to handle some of the costume invoicing and all fees for comps.
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tappinmom

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Reply with quote  #16 
Neither of the studios we attended took cash.  First studio was cheques up front for the whole year of regular classes and lines and large groups.  When small groups and s/d/t were decided you paid the studio for those with a cheque as well.  Second studio offered cheque, debit or credit but no cash.  All fees were paid to the studio including privates.
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MissSteph5678

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Reply with quote  #17 
I'm an SO here....We actually just started requesting Cash or check when collecting some items as merchant fees for credit card machine Payments started to really kill us during certain times of the year when we collect our largest payments. We pay as much as $1,000 a month in fees and from what I understand (my husband who does our financials and works full time in banking and finance) that is pretty standard. Instead of charging a service fee to our families we try to limit the amount of payments we take via credit card. The income is reported since it is entered in the operating system we use for our books. No shysty dealings here. And I'm sure there aren't shady dealings going on in your respective studios, just businesses trying to make ends meet.
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meatball77

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Reply with quote  #18 
I understand not accepting credit cards.  It's requiring cash that's weird.  Checks have a paper trail
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mom2dancinboyngirl

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Reply with quote  #19 
We pay for a lot of things by cash, but there is always an itemized receipt detailing how much you paid and what it was for. I would not be comfortable paying cash for something and getting no receipt.

Cheques are accepted for some things and not others (since bad cheques can be a big problem for a small business). 
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AmandasMom

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Reply with quote  #20 
Same as some other responses here...cash or check straight to the teacher!
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joriebelle

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Reply with quote  #21 
I pay one of DD's teachers only with cash because he is from Russia and doesn't have a checking account here yet
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kradonov

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Reply with quote  #22 
Yup, our studio is cash or check only, just to avoid the transaction costs from credit cards.  It was hard to get into the habit of anticipating needing cash or having my checkbook on hand, but we've gotten used to it now.  And, they are definitely not hiding the money!  Our previous studio was autodraw monthly with our credit card on file.

Quote:
Originally Posted by MissSteph5678
I'm an SO here....We actually just started requesting Cash or check when collecting some items as merchant fees for credit card machine Payments started to really kill us during certain times of the year when we collect our largest payments. We pay as much as $1,000 a month in fees and from what I understand (my husband who does our financials and works full time in banking and finance) that is pretty standard. Instead of charging a service fee to our families we try to limit the amount of payments we take via credit card. The income is reported since it is entered in the operating system we use for our books. No shysty dealings here. And I'm sure there aren't shady dealings going on in your respective studios, just businesses trying to make ends meet.
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Noel

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Reply with quote  #23 
I wouldn't question cash OR check only... but cash only, direct to the instructors hands and never a receipt given was the situation we were in.
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heidi459

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Reply with quote  #24 
Quote:
Originally Posted by Noel
I wouldn't question cash OR check only... but cash only, direct to the instructors hands and never a receipt given was the situation we were in.


Did you ever ask for a receipt and were refused though?

And please understand, I'm not making excuses.  I'm just choosing not to make assumptions without all the facts.  They may simply have been clueless when it came to business.  IDK.  I mean, sure, we can wonder all we want.  But there's no way of knowing... so it's seems better to just give them the benefit of the doubt, no?
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Noel

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Reply with quote  #25 
Receipts were always given when paying for classes or competition fees. They were up front about the additional fee if paying by credit card. For some things credit cards were not accepted, cash or check only for things like registration and comp. fees. I often declined the receipt as I had no need for the paper trail.

Unfortunately, the answer is yes, I did ask. When I asked why I could not pay for private lessons with a check and received the answer, "cash only for privates" I then asked for a receipt and was never given one. After a few times of asking and being put off I stopped asking. Asked for a receipt for drop in classes as well, those were cash only, never got that either.
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