Who checks to see if a company is paying their employee under the table?

Answer 1

The IRS

Answer 2

The IRS would if there was an audit. State/Local tax authorities may pick up on this as well. But, it would be pretty easy to do with a small/medium size business. Harder with a large/public business as accounting practices and policies would make such a thing more difficult.

Besides, a large business wouldn't take the risk given the attention they get from various regulators etc.

Answer 3

All of the above are hypothetically true. However, such cases are generally hard to prove and in nearly every case would require the the confession of either the payee or payor, or both. To the point, an anonymous complaint to the authorities would likely uncover anything unless one of the two confessed. Finally, the scope and scale of any probe would likely deal with the estimated tax evasion, given that most regulating bodies are busy trying to catch the biggest of the fish.

Answer 4

If IRS audits employee and see that he has receipts that add up to more than his reported income they will charge him with tax evasion.

The current tactics of the US justice system are to allow one to plea down if they rat up. In exchange for accurate information ( I got it under the table from X, where I worked) the feds will reduce or eliminate your fine in order to bust a bigger fish.

Answer 5

That would be the IRS division of pygmy services. Since they are so short, they can walk around under tables and never be noticed.

Answer 6

Federal and State Employment boards.

Answer 7

IRS, social security, state and local employment boards.

Answer 8

If the IRS is called they might check.

Unless it is a large thing there really isn't much interest.