Complete Labor Law Poster for $24.95
from www.LaborLawCenter.com, includes
State, Federal, & OSHA posting requirements

Announcement

Collapse
No announcement yet.

Dated Check in California California

Collapse
This topic is closed.
X
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Dated Check in California California

    Hi
    Background: I am a piano teacher in California, I register my studio's name and also pay tax every quarter. I am a sole proprietor. Every month I collect personal checks from parents and deposit into my business account. I found that this is very troublesome, I ended up run to the bank up to 5 times per month because some parents pay late. Even I charge the late fee, they still pay late.

    Plan to change:
    From September 2010 (a new school year), I like to change my policy.
    I like to ask all the parents to give me 10 checks with date such as 9/1/10, 10/1/10, 11/1/10, 12/1/10, 1/1/11, 2/1/11. 3/1/11, 4/1/11, 5/1/11, 6/1/11 up front on 9/1/10. In this case, I just have to go to bank one time to deposit all my income of the month on the 1st of every month so that I can pay my bills on time too.

    Questions:
    Is this legal? Can I do this?

    Thanks

  • #2
    Is it legal? It's not illegal. However, if I were the parent, I wouldn't do it. If I remember correctly from my business law class, when a check is issued, it is expected that it is immediately negotiable, regardless of the date on it. Plus, what if one of those checks comes back NSF? Your NSF charge would likely be more than what you would spend in gas and time to go to the bank every week.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

    Comment


    • #3
      Gotta agree with Patty here. Legal or not, if my kid's piano teacher asked me to do this on Monday, my kid would have a new piano teacher on Tuesday.
      The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

      Comment


      • #4
        Agree with other responders - doubt if parents would go for it.
        Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

        Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

        Comment


        • #5
          Ever thought of accepting credit cards? There is NO CHANCE I would hand over a bunch of signed checks!
          Not everything in America is actionable in a court of law. Please remember that attorneys are in business for profit, and they get paid regardless of whether or not you win or lose.

          I offer my knowledge and experience at no charge, I admit that I am NOT infallible, I am wrong sometimes, hopefully another responder will correct me if that is the case with the answer above, regardless, it is your responsibility to verify any and all information provided.

          Comment


          • #6
            Or even PayPal?
            I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

            Comment


            • #7
              Originally posted by sina.tan View Post
              Hi
              Background: I am a piano teacher in California, I register my studio's name and also pay tax every quarter. I am a sole proprietor. Every month I collect personal checks from parents and deposit into my business account. I found that this is very troublesome, I ended up run to the bank up to 5 times per month because some parents pay late. Even I charge the late fee, they still pay late.
              So it is a problem to deposit money into your account?

              Have you heard about Internet Banking?

              Comment


              • #8
                Or mailing the deposits to the bank? Yeah, it costs 44 cents and maybe a day or two delay in the deposit, but is your time and gas worth 44 cents?
                David K. Staub (www.illinoisbusinessattorney.com)
                Forum posts are not legal advice, are for informational and educational purposes only, and are not a substitute for proper consultation with legal counsel.

                Comment


                • #9
                  Hello
                  Thank you for all your suggestions. I like to learn more about what do you mean by Internet Banking.
                  My bank provide internet banking which allowed me to see my balance online. I can also transfer money to other people with other bank. In fact 10% of the parents is using bank to bank transfer to pay monthly tuition now. That will be my ideal if all of them can do that for me. Somehow, a lot of them still prefer paying checks.
                  I am open with any other suggestion, please help!
                  Thank you!
                  I had explore the possibilities of paypal, but paying a 3% of my income to a service is kind of heavy for me. I know I either getting pay less or I have to raise my fee and both of these is not what I am thinking now. I like to know if I have any other option before I use this, my last option.
                  Last edited by sina.tan; 05-05-2010, 09:34 AM.

                  Comment


                  • #10
                    My bank has the option of at home deposits. Ask your bank about this.

                    3% is not that much money. It is less than losing one customer, and not receiving 100% of the check. It can be tax deductible as the cost of doing business.

                    Comment


                    • #11
                      This is what my bank offer:

                      https://www.chase.com/ccp/index.jsp?.../quick-deposit

                      Is this what you mean?

                      If I deposit check with this method, what do I do with the checks? Do I throw them away, shredded or......?

                      Comment


                      • #12
                        Read the fine print. That service cost you for the scanner.

                        It is better to figure on going to the bank once a week.

                        Comment


                        • #13
                          I deposit checks into my bank's ATM. It adds a day's delay to the time it takes my funds to be available, but I can do it nights or weekends, and the transaction is faster. It doesn't cost me anything, as long as I use THEIR ATM.

                          Comment

                          The LaborLawTalk.com forum is intended for informational use only and should not be relied upon and is not a substitute for legal advice. The information contained on LaborLawTalk.com are opinions and suggestions of members and is not a representation of the opinions of LaborLawTalk.com. LaborLawTalk.com does not warrant or vouch for the accuracy, completeness or usefulness of any postings or the qualifications of any person responding. Please consult a legal expert or seek the services of an attorney in your area for more accuracy on your specific situation.
                          Working...
                          X