Can my employer pay me cash to avoid payroll taxes?

No, it most certainly cannot.  The Connecticut Department of Labor recently cracked down on subcontractors at UCONN who were paying their employees in cash to avoid taxes. Read this story here:www.courant.com.  While being paid “under the table” may seem attractive because the employee also does not have taxes taken out of her paycheck, it  means that the employer is not making contributions to Social Security and the unemployment insurance fund.  Further, employees who are paid under the table are still responsible for paying income tax and need to track their wages and file a tax return or risk investigation by the IRS.  This article from Forbes.com provides some tax tips for employees who are paid “under the table” or “off the books”

As always, if you think your employer is violating the law, let us know!
Tags:

Leave a reply

Your email address will not be published. Required fields are marked *

Contact Us Today

 

I worked for a retailer and was a Plaintiff in a class action for unpaid overtime wages. Hayber, McKenna & Dinsmore did an amazing job of getting our unpaid overtime back to us. Every one at the firm that I dealt with through that process was wonderful to work with. I appreciate all they did for us more than you will ever know.
- L. LeHeup, Georgia