Can any employer pay you cash if you only work for them 15 hrs a week and get $11 a hour without getting in trouble. I have heard that company can pay some cash and show it as expense
2007-11-23 09:41:37 · 10 answers · asked by Anonymous in Business & Finance ➔ Careers & Employment ➔ Other - Careers & Employment
Answer what?
2007-11-23 09:43:36 · answer #1 · answered by fatandsmooth 5 · 0⤊ 1⤋
No, not legally. They're breaking the law if they pay an employee "under the table".
If you are not an employee but are an independent contractor, they can pay you cash, and don't have to send you a 1099 if you make less than $600 a year from them. That might be what you heard about. But they can't just declare you to be an independent contractor - what you are doing for them, and the terms of your doing it, decide whether you are an employee or not. If they set your hours, and you mention working 15 hours a week, then you are an employee and they are required to take taxes out of your paycheck, pay employer taxes, and report your wages to the IRS and give you a W-2 at the end of the year..
2007-11-23 18:28:41 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
They have to report it. But it sounds like they are trying to get out of paying their share of the taxes by just paying you cash and then just writing the money off as an expense during tax season. They need to provide you with a receipt of payment reflecting how many hours you worked and how much they are takling out for taxes. If not then you would have to fill aout a 1099. But either way if they are not paying the taxes and neither are you then someone is going to be in trouble with the IRS at the end of the year if they find out fraud is being done.
2007-11-23 17:46:15 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes, they can, regardless of how much you work or how much you are paid by the hour.
But they must keep accurate payroll records that show deductions from your pay, including taxes.
The real question is what your status is with that company. Are you a true employee of the company or are you considered an independent contractor?
That will determine what taxes they must deduct, and how they must pay you.
They must withhold money for federal income taxes (and state or local taxes if any), plus social security-medicare taxes, if you are an employee.
If you are an independent contractor, they can pay you from payables as they do any other vendor.
Find out what your status is.
2007-11-23 17:49:50 · answer #4 · answered by BC 6 · 0⤊ 0⤋
I do side work in addition to my full job.
You can earn up to 600 a year tax free per employer. Search for information on 1099's on the irs.gov.
2007-11-23 18:06:59 · answer #5 · answered by Paul T 2 · 0⤊ 0⤋
That is being "paid under the table" -- the employer doesn't claim you as an employee and you never "really worked for them" -- no taxes paid on your income. Somehow I think it is illegal but it happens a lot. Unfortunately, I've never fallen into that lucky job...... ha ha.
A lot of illegal immigrants are paid this way as they don't have social security numbers, etc.
2007-11-23 17:46:06 · answer #6 · answered by butterfliesRfree 7 · 0⤊ 0⤋
I believe that they can get in trouble if they get auditted. Is it any loss to you though? If not, I wouldn't report it.
2007-11-23 17:44:44 · answer #7 · answered by ilovecoach 3 · 0⤊ 0⤋
Only if your a sub-contractor
peace out
2007-11-23 17:44:29 · answer #8 · answered by Remy 4 · 0⤊ 0⤋
probaly nott!
2007-11-23 17:44:47 · answer #9 · answered by Anonymous · 0⤊ 0⤋
I would think so.
2007-11-23 17:44:49 · answer #10 · answered by ? 4 · 0⤊ 0⤋