August 20, 2020

Christopher Anderson

Sometimes employers offer to pay their workers cash, without a paystub. Some call this paying you “under the table.”  Sometimes it is to avoid taxes. Sometimes it is for other reasons. Chances are that if your boss is paying you, or offering to pay you,under the table, he or she is probably presenting it as something done for your benefit. After all, if taxes aren’t being deducted from your paycheck, that makes your paycheck seem fatter. Chances are, this isn’t for your benefit at all.

Indeed, there can be all kinds of reasons this is bad for you. The real reason your boss isn’t paying you probably has more to do with the business saving on insurance and taxes than it does with trying to benefit you.

Your employer should be paying their portion of unemployment insurance, social security taxes, and workers compensation. If they aren’t, it’s also possible that they aren’t paying minimum wage or overtime either. And not only are workers in circumstances like this being cheated out of current wages; they are likely to find collecting unemployment difficult and they are not accumulating social security funds.  If they get hurt on the job, they may find that there is no Worker’s Compensation available.  Of course, employers who do this also expose you to potential tax liabilities because of not doing the withholding on your income that they are supposed to. The IRS may come looking for their money from you!

A common dodge is for an employer to pretend that employees are independent contractors.  Employers who pay in cash are taking the situation even further. They’re usually pretending they don’t have employees at all. If you feel your boss is trying to save money by paying you under the table, talk to an employment lawyer about your options, or consider filing a complaint with the Department of Labor or IRS. You should also keep track of the hours you work so you have some documentation if at a later point you want to collect unemployment or back wages that are unpaid.

If you are being paid “under the table” by your employer, please CONTACT US today. As an employee you have many rights and benefits under the law, and we can help you figure out whether any of these rights are being violated. We offer a completely free and confidential consultation, so you don’t have to worry about your boss or anybody else finding out. And even if he or she did, it’s illegal to retaliate against you for pursuing your lawful wage rights.

You work too hard to be cheated out of your wages. Please CONTACT US today to learn more!