Whatsup with jobs that pay under the table??

Question

My youngest sister she is 15 started her first job at a local grocery store working part- time as a baker she recently quit because of school. The thing is they never paid her with a check it was pure cash this grocery store been around for 20 years pretty decent store paying everyone under the table not just her. Just wondering is it cheaper to do it that way or what? I never got a job that doesn't pay without taking taxes or checks with hrs. I was just wondering whatsup with that?

Answer 1

If you or the company get caught it's a hugh tax headache so best not to do it.

Answer 2

It's cheaper for the employer, because they don't pay employer taxes. It's also illegal, and if they pay everyone or almost everyone that way, eventually someone will notice that their expenses for labor are very low. Or if someone gets hurt on the job and applies for workman's comp and it isn't there because the store hasn't paid it - or someone applies for unemployment but the store didn't pay that either..... there are lots of ways of getting caught.

The employees getting paid under the table are still responsible for reporting their income to the IRS on a tax return, and paying any tax that's due. If your sister didn't do that, then she did something illegal to, called tax evasion. If the store gets caught, your sister very likely will too when the IRS starts digging into store records to see who they paid.

Answer 3

In the case of your sister, maybe since she was 15 they were trying to avoid child labor laws, if the store sells alcohol there may also be some legal problems with that too. There are some people who employ people who do not have legal status in this country, paying them cash prevents having to report this fact. I know some people work jobs that pay under the table to avoid legal financial obligations like child support, or back taxes.

Answer 4

By paying cash, they do not generate a paper trail of employees, so they get away with not paying social security on the employees, which I believe is illegal. Of course, that also means that the employee's earnings are not being reported, so in the long run it will affect how much social security they qualify for since their reported income is less than it could have been. Social security payments are based on the amount one paid in over a lifetime. It also means that those employees are not paying their fair share of federal taxes that I have to pay.

Answer 5

Well, not only is it cheaper for the employer but for your sister as well. The employer can obtain workers very quickly, minus all the interviews, and paper work. You sister won't have to pay taxes, so she's making about 13% more right off the bat. If she wants to quit without notice she can, an it's not going to be on any records. Is it legal. Absolutely not. Is your sister liable, not at all. I love working under the table, it's the fastest way to wealth. It benefits everyone but the local, state and federal government, but who cares if they miss a few bucks anyways. We pay them every day for life.

Answer 6

under the table paying means that the store can get away with paying her less. also because its "off the books," your sister doesnt have to report her hours, therefore the store can "allow" her to work long hours, open and close the store, etc. every state has labor laws for those under 18, and limit the # of hours they can work.

it works for your sister cause she doesnt get taxes taken out. but on the other hand, those under 18 usually can file exempt anyway so... i dunno.

either way, its kinda illegal to pay off the books, but LOTS of people get paid that way to evade the law. minors, those who dropped out perhaps, immigrants without papers... who knows.

Answer 7

The owners are trying to skirt around the tax laws and what they're doing is illegal.

Answer 8

Why do you care. Worry about yourself and your own life!

Answer 9

that is one of the systems....there is freedom for you to choose....