I think it's better to talk about the actual amount of money that is ending up in my bank account rather than mythical pre-tax rates that receive a 30-50% haircut, especially for 1099s.

If the business wants to deduct the expense, then I charge higher.

If the business somehow comes up with $2,200 a month in physical cash, then I won't question it.

Yes it's illegal, but that's actually for the IRS to prove and not me.