I can either choose to make minimum wage ($7.20) and be on the books or make $6 off the books. Which one is a better choice? Is it illegal to be paid off the books?
2007-04-03 10:10:03 · 9 answers · asked by Anonymous in Business & Finance ➔ Careers & Employment
It's a privately owned ice cream shop...I don't think they offer any benefits.
2007-04-03 10:17:38 · update #1
Yes it is illegal to be paid off the books. You an your employer could face serious problems with the IRS as they would not be collecting various taxes from you and the employer.
Second, this is for you, If you got hurt, fired, got in a car accident anything, you would not be able to qualify for Workmans Comp., Unemployement Benefits, Disability and any other program out there. First, without taxes you didn't pay for it. Second, you will not be on the books as an employee to ever qualify.
Last, this employer could fire you or just not pay you if he felt like it, because if you reported it, you too would be in trouble.
Take the $7.20 per hour and smile......
2007-04-03 10:23:04 · answer #1 · answered by Ken C 6 · 0⤊ 0⤋
I would pick the minimum wage job because then you are a true employee of the company and receive whatever benefits are offered. You will be covered under Workers' Comp insurance also if you are ever injured on the job. You will earn vacation and sick time also (even a part-time job) if you are a regular employee. You can put that job on your resume also for the future. Working off the books (or under the table as they call it) is never a sure thing.
2007-04-03 10:15:50 · answer #2 · answered by Me, Myself & I 4 · 0⤊ 0⤋
It is illegal to be paid off the books. When you are paid on the books, besides the $7.20 the employer has to contribute $0.50 per hour to your Social Security benefits. Further, the employer has to provide workers' compensation insurance if you are injured on the job, as long as you are "on the books."
2007-04-03 10:19:06 · answer #3 · answered by regerugged 7 · 0⤊ 0⤋
off the books is illegal. because you must pay taxes on all monies earned. Also if you get hurt, no workmans comp. claim can be filed. Last of all....most of the time total taxes and ss held adds up to about 30% so $7.20 x 30%= 2.16...subtact 7.20-2.16=5.04 per hr it would be a little less...but with these earnings you should fall in low income and get it all back on taxes and possibly even more than they hold out with earned income credit.
2007-04-03 10:21:34 · answer #4 · answered by rick/sheri h 1 · 0⤊ 0⤋
It depends on what kind of job it is and how long you are planning to stay there. If it was a job that I would like to grow in then I would want to get taxed since I would like to receive the benefits. If it is just a temporary job then I wouldn't mind being off the books since I will get paid more. It is illegal; I have done it before.
2007-04-03 10:20:41 · answer #5 · answered by xoxo_jenn_24 2 · 0⤊ 1⤋
It is not illegal to be paid off the books. It is illegal to pay someone off the books. If you are paid off the books you must report your income and pay your own social security tax.
For all of the reasons cited above it is stupid to work off the books, but not illegal.
2007-04-03 10:35:14 · answer #6 · answered by Scotty 4 · 0⤊ 0⤋
No, it's not illegal but you are supposed to report any income. i would choose the 7.20 job and at the begin of the year you can get some of the money back.
2007-04-03 10:15:03 · answer #7 · answered by starla q 1 · 0⤊ 2⤋
If the government finds out you and the company you work for can get into serious trouble
2007-04-03 10:12:45 · answer #8 · answered by Carrie C 2 · 0⤊ 0⤋
If your not on the books its esier for them to fire you unfairly, and you may not be covered by their insurance. Go the legit way to be safe.
2007-04-03 10:14:59 · answer #9 · answered by rebecca j 2 · 0⤊ 0⤋