My new boss is starting a new business and i'm helping him get everything (paperwork) in order and until he offically gets everything in order and opens it up, he wants to pay me "under the table."
2006-09-19 08:11:13 · 10 answers · asked by Lady Godiva 1 in Politics & Government ➔ Law & Ethics
I am not going to judge you or him. It is good you are helping him. The law is very clear on this issue. If you earn any money from someone that is not your father or mother. You have to pay taxes on all earned money. The employer has to take out taxes on that money. So yes, it is illegal to be paid under the table in any state.
But it happens...
2006-09-19 08:17:00 · answer #1 · answered by Anonymous · 1⤊ 0⤋
It's illegal in every state because you have to claim income on your federal taxes, not just your state taxes. I would only do it for a very short time if that is what you want to do. This allows him not to pay his taxes as the employer and if you are caught getting paid under the table you will be the one responsible for paying the taxes on the income. If it were me I would probably look for a more reliable job with better benefits and more stability. If he is trying to start a legit business he should be doing it the right way.
2006-09-19 15:17:16 · answer #2 · answered by Monika S 2 · 0⤊ 0⤋
It is illegal anywhere in the USA because you are depriving the US Govt of Income Tax revenue
2006-09-19 15:26:57 · answer #3 · answered by Chuck N 6 · 0⤊ 0⤋
No, it just means that he's going to pay you and won't report it. He won't pay any income tax and if you want to report the income, you'll be responsible for the taxes.
Of course, if you don't report it and don't pay income taxes on it, yes, that part would be illegal in ALL states.
2006-09-19 15:15:44 · answer #4 · answered by Anonymous · 0⤊ 1⤋
If you're not paying taxes on the money you're receiving, then yes, it's illegal -- anywhere in the U.S.
2006-09-19 15:20:09 · answer #5 · answered by Anonymous · 0⤊ 0⤋
yes it is illegal unless he withholds taxes and sends you a 1099 at the end of the year
2006-09-19 15:18:26 · answer #6 · answered by Heather N 2 · 0⤊ 0⤋
Yes, unless you claim it in your taxes at the end of the year. Your accountant can help you with what papers to fill out, if you choose.
2006-09-19 15:13:48 · answer #7 · answered by FaerieWhings 7 · 0⤊ 0⤋
It's illegal everywhere in the US.
2006-09-19 15:13:00 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Yes it is illegal, but it does happen.
2006-09-19 15:13:30 · answer #9 · answered by Anonymous · 0⤊ 0⤋
it is ILLEGAL everywhere! Don't do it!
2006-09-19 15:14:06 · answer #10 · answered by rache0116 3 · 0⤊ 0⤋