What is working "off the books?"?

Question

I've been a working woman for 31 years,and,several times over the years,I would hear people mentioning expressions like "working off the books." I've never done it with any employer. I've always had things like Social Security & Medicare deducted from all my paychecks. That's "on the books."

So,what does "working off the books" really mean?Any bookkeepers, payroll clerks, or accountants out there who can answer this question? Thanks!

Answer 1

It means getting paid in cash without any deductions for taxes. Generally speaking, cash income is not accounted for as income and is passed directly to employees, quite literally keeping it "off the books."

The IRS is clamping down on this practice and is making it much harder to hide those payments from the tax man.

This most frequently happens with businesses that are cash-intensive such as small restaurants, "Mom & Pop" convenience stores, movie theaters, etc. where it is possible to divert cash without running it through the till or a credit card charge directly to an "employee." The IRS watches these types of businesses closely and is not above recalculating their income based on estimates if they think something funny is going on.

Answer 2

It means payment by someone that does not keep a tax record for the work paid out to someone that does not declare the wages received.

People will sometimes use this to make extra cash, tax-free. As an ongoing activity it is as illegal as any tax dodging. But if someone does not make enough to put them in a taxable bracket, it would be comparable to not filing a tax return because the gross income is less than required for filing.

Another term for "working off the books" is "getting paid under the table."

Answer 3

You can work off the books doing work that mostly teenagers do such as washing dishes at a restaraunt, mowing lawns, landscaping, shoveling snow in the winter. I don t find anything wrong with it especially since almost every time I ve needed help I wouldn t get help from the government because I m a single white male. This is after several years working and paying into the system so others could irresponsibly have kids and get assistance but I can t get help when I need it simply because I don t have kids.

Answer 4

It is the same as getting paid "under the table" It is off the records and there is no record of you working. Usually this kind of work pays cash because you cannot trace cash so then taxes and medicare and all that aren't a problem for the employer.

Answer 5

It is spoken as "off the books" because it is a means of paying someone without a paper trail usually to avoid taxes. Also, for example, if someone knows he has garnishments that would be taken out of his/her pay, child support, etc., they can find work where someone pays them a little less (for more work) but pays it in cash. Thus, no trace of any monies to this person. It works for the payee and payor.

Answer 6

I have heard so many people around here where I live that run a small business say how they hold so much pride in cheating uncle sam out of a dollar or two.

Many free enterprisers probably started out working off-the-books. The tax department was none the wiser, and what the taxman didn’t know, ...


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Answer 7

Paid in cash usually with no records of the employee being hired hence no taxes or deductions at all usually completely illegal also no record of the payment being made.

Answer 8

Being paid in cash, without records sent to the IRS. It's illegal for both the employer and the employee.

Answer 9

That's payment in cash, or other medium of value such as services, barter, or trade which can not be traced and reported to the IRS. It is usually illegal and unethical, but some people in certain financial situations prefer it that way. Illegals, or people receiving some sort of restricted government(state, or federal)aid.

Answer 10

Short and sweet, it means getting paid in cash with no record to trace it.