At my last job I was paid "under the table" in cash and with personal checks from the employer.?

Question

My employer told me that it wasn't a problem. If I want to "turn her in" and report this to someone, can I as the employee get in any trouble and how do I report this?

Thank you for all responses!

Answer 1

Um, they would have been writing it off on tax. Paying in cash or check is not a problem.

You know you have to pay tax on that cash or check you receive? your responsible for that.

Answer 2

Depending on your job duties, it IS a problem, if you were an employee and not an independent contractor. And the employer doesn't just get to decide which you are. If they direct your work, for example they say where and what hours you work, then they are required by law to withhold tax from your checks and to pay employer taxes. If they don't, they are doing something illegal and can be reported to the IRS.

If you didn't pay tax on the income, then you are also doing something illegal.

Answer 3

This is a double edged sword. Remember, you will be turning yourself and all the other employees in when turning in your employer. Everyone there, including yourself, is guilty of tax evasion. You and all the other employees will owe taxes on all the money earned. This will come out to about $30 for every $100 earned will need to be given to the government. Are you able to pay that amount? More importantly, are you ready to face the consequences for tuning in all the other employees in the company in and have them pay all those owed taxes? You will make some enemies very quickly if all of a sudden these people find themselves owing hundreds or thousands of dollars to the government.

Answer 4

Unless you have filed a income tax return claiming the cash as income, I would not report the employeer. Plus had the employeer paid you a check, you would have had Fica, state and federal taxes taken out. So my advice to you would be not to report this person.

Answer 5

I bet turning the employer in is a waste of time, as a matter of fact i bet they turn you in by sending you a 1099 MISC with the amount they paid you in box 7.

Not many businessmen will turn away a multi thousand dollar tax deduction (the money they paid you).

He didn't tell you that independant contractors are subject to self employment taxes did he?

Answer 6

you are responsible for the taxes owed. you might choose to avoid paying it, but by doing so you are giving away some of your employment rights and putting yourself in a position where in the future it might comeback and hunt you.
on the other hand avoiding about 30% "loss" in your wages could feel like a nice thing in the short run. we always have to think of the consec. of not paying this little 30% , and who will be harmed by that! the answer is all of us. in economics the benefit consentration on one person might give you the urge of eccepting not paying this 30% because you don't assume the full cost of not paying it. in other words if you don't pay you save 30%, and everybody else will have to cover this.
be a responsible citizen and fully pay your taxes, then make sure you contact your reps. in the government to make sure they spend it wisely.
Allahkareem

Answer 7

File a complaint with your equivalent to the department of labor in your area. They will come down hard on the company for failing to pay you your wage for hours you worked and you will get your money!

Answer 8

The employer was doing you a big favor! Why would you turn them in? Plus, besides getting them in trouble, you'll have to pay the back taxes, fines and interest on the taxes you avoided in the first place. You're an idiot.