what is the penalty if an employer pays his employees regular work wages, under the table for over ten years?

Answer 1

The employer will be responsible for past taxes AND Social Security payments. In addition, all employees will be audited for taxes, too. Both would incur penalties.

Answer 2

Tax evasion unless you can prove that all these workers were independent workers (self employed).
The penalty for tax evasion is: taxes due, penalty fine, interest on the taxes that should have been paid. If you refuse: confiscation of assets and ultimately prison.
The IRS just wants to collect what they believe is owed so payment plans are very likely.
It would be up to the IRS for the burden of proof. If they cannot prove that person owes then they do not have a case.
You can look for specifics at the IRS website.. If you are paranoid, you can have someone else look for you.

Answer 3

The irs on its site has a fraud form you can fill out, print out and mail to them anonymously.

Alot of these employers have illegals working with them and they are paying them under the table. Some businesses are smarter and will pay half cash / half check to employees.

I imagine there would be heavy fines for such a situation. The irs would go after the back taxes and slap a penalty on top of it.

Answer 4

He has tax problems and so do the employees who accepted the pay. The employees also do not have money in their SS account for retirement benefits or Unemployment.

Answer 5

My friend is having an issue with being paid under the table.
He has no references and no job skills and was just laid off.
He is not eligible for any kind of unemployment benefits.
He also found out that if he would have been injured on the job all medical expenses would have been out of pocket.

Answer 6

if he is not paying taxes on the wages to the irs he could be facing a large fine and possible prison time and im sure he would lose his business

Answer 7

jail if he doesn't pay up for the tax man