Is 'under the table' pay illegal?

Previous | Next
 rated by 0 users
Latest post 08-01-2014 2:10 PM by kfr1960. 20 replies.
  • 04-21-2008 3:59 AM

    Question [=?] Is 'under the table' pay illegal?

    Every time I turn around, I hear that being paid under the table is illegal. I respond with "well, if its illegal, why doesnt any government agency do anything about it?

    Is it illegal for both the employer and employee, or is it legal?

    Can someone clear this up for me please?
  • 04-21-2008 8:52 AM In reply to

    Feedback [*=*] re: Is 'under the table' pay illegal?

    The answer to the first question is that the IRS does prosecute, when the conduct is discovered.

    If by "under the table you mean payment in cash with no taxes taken out, it is always illegal for the employer. If the employee does not report the income and pay taxes on it, then it becomes illegal for the employee as well.
  • 04-21-2008 10:37 AM In reply to

    re: Is 'under the table' pay illegal?

    And there could be other laws that the employer is breaking.

    Most states require an employer to provide workers compensation insurance for employees and also to pay into the unemployment compensation fund.

    Failure to do either could subject the employer to penalties.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 04-21-2008 11:06 AM In reply to

    Question [=?] re: Is 'under the table' pay illegal?

    Thank you both for your helpful information.

    What I dont understand is that one place where I work part time on the weekends is filled with under the table jobs. Literally the entire street (about 30 businesses) all pay under the table, without taxes taken out, cash at the end of the night. This is on ONE street.

    Does the IRS not care about these employers? Or, do they need something like probable cause to investigate the businesses payments?
  • 04-21-2008 12:22 PM In reply to

    re: Is 'under the table' pay illegal?

    SO call the IRS and report it.
  • 04-21-2008 1:56 PM In reply to

    Note [#=#] re: Is 'under the table' pay illegal?

    The IRS can't investigate what they don't know about. You're free to call and report them.
  • 04-21-2008 10:09 PM In reply to

    re: Is 'under the table' pay illegal?

    I dont want to report them.

    Im just saying that you know the IRS knows about many of the under the table jobs. They have to know about at least some of them. I was just asking why they dont do anything, unless they really dont know what place is paying under the table.
  • 04-21-2008 11:06 PM In reply to

    re: Is 'under the table' pay illegal?

    Well sure they know they are out there, but unless you, or someone else, reports it they have nothing to go on.
  • 04-22-2008 2:50 AM In reply to

    Ok [+0+] re: Is 'under the table' pay illegal?

    Yeah, that is what I was assuming. We all know that the IRS wants their money, I just cant believe they arent actively seeking out employers that are actually paying under the table.

    Thanks for the replies!
  • 04-22-2008 8:44 AM In reply to

    • cbg
      Consumer
    • Top 25 Contributor
    • Joined on 12-21-2000
    • MA
    • Posts 6,830

    re: Is 'under the table' pay illegal?

    Unless someone tells them, they don't know.

    They don't do anything because no one has told them.

    I think you are assuming that they are aware of the existance of each and every business operating in the US. They're not. If the business is operating illegally and/or not paying what they're supposed to pay; if the business does not exist on paper as far as tax records go, then the IRS has no way to know about it unless someone brings it to their attention.
  • 04-22-2008 12:23 PM In reply to

    re: Is 'under the table' pay illegal?

    And just how does the IRS know about this if no one tells them?

    Yes, in the abstract they know it happens. But they can;t do anything in the abstract. They have to getinformation about a specific instance to take action.
  • 04-22-2008 1:33 PM In reply to

    Note [#=#] re: Is 'under the table' pay illegal?

    The point is that the IRS doesn't know that's going on unless somebody TELLS THEM. And in the meantime, the rest of us taxpayers and businesses are paying more in taxes because others aren't paying their share.
  • 04-23-2008 9:43 AM In reply to

    re: Is 'under the table' pay illegal?

    You're missing the point.

    The IRS doesn't send out agents to comb the streets looking for tax cheaters. At least, I don't think it does.

    The IRS has a hotline to report tax cheats and a reward program.

    You might make a great deal of money if you turn in a list of 30 businesses that the IRS can eventually collect from.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 04-29-2008 7:43 AM In reply to

    Ok [+0+] re: Is 'under the table' pay illegal?

    Well, I get the point now. I just didnt know if the IRS actually look out for these things.

    Adjuster jack...I think you are VERY smart. I am now going to try and develop a way to make money by turning these companies in. THANKS!
  • 04-29-2008 12:49 PM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 49,519

    re: Is 'under the table' pay illegal?

    Before you plan on making a living turn in folks who participate in under the table payments you better first take out a $10 million life insurance policy--folks have been found with concrete shoes in the river for less.....



Page 1 of 2 (21 items) 1 2 Next > | RSS

My Community

Community Membership New Users: Search Community