Paying employees in cash, also known as working under the table, is a clear violation of employment law. In most cases, it’s illegal and can lead to fines and jail time for both the employer and employee. In order to avoid paying taxes on their earnings, employers often opt to pay their employees in cash. However, this is not legal and can result in the IRS pursuing criminal charges against both parties. If you believe your employer is engaging in this behavior, you can report the business to the IRS to help protect yourself.
A business is any organization or enterprising entity that engages in commercial, industrial or professional activities. This can include anything from a small home-based enterprise to massive multinational corporations. Businesses can be for-profit entities that aim to make a profit or non-profit organizations that seek to fulfill a charitable mission or advance a social cause.
Employers who pay workers in cash are often attempting to dodge their employer tax obligations, which requires them to contribute to social security, unemployment insurance and workers’ compensation. They may also be trying to skirt around other employment laws, such as minimum wage and overtime requirements.
If you suspect that your employer is engaging in this practice, it’s important to keep track of all of the cash payments you receive on a monthly basis. This will help you identify any discrepancies in your wages, and it will also allow you to report the employer if necessary.