Can I get in trouble being paid under the table?

Question

I recently accepted a second job as a server in a small restaurant. I did not take it for the money, I am stable and can afford to live comfortably with my first job- I took it to learn the in's and out's of running a small business. I want to start up my own restaurant someday, and thought this would be a great learning experience.

The only thing is, that the owner is going to pay me "under the table"- in cash every day before I leave. I know he is at risk by doing something like this, but if he chooses to run his business that way, that is his choice.

I am pretty educated in business, and know that I need to watch out for myself, but this situation is purely win-win for me.

I just want to know if I am at risk with the law for taking a job like this?

Answer 1

That is called income tax evasion, for you and the employer. If you are hurt on this job, you cannot use his insurance to file a claim, since he claims you don't work for him or he doesn't report that you are employed there, and if you get laid off, you cannot file for unemployment benefits. But the most serious is the tax evasion.Read the site below and see what others have to say and about the legality of it all.

Answer 2

As long as you report all the income and pay the appropriate taxes on it, the government doesn't care if your boss pays you in cash or rolls of pennies.

Whether he gets himself in trouble is, as you said, his problem.  

Answer 3

This is only one of many answers you are sure to get, so I will keep it brief.  You may get away with it at least for awhile, but by accepting the pay under the table you could get into trouble by not reporting the income to the IRS and your state revenue department.  This could be, you know, tax evasion.  Not only might you have to pay the taxes and penalties, but it just might lead to criminal prosecution.  

        If indeed you do report the income properly, you should have no legal problems.

    Next.........................

Additional Information:  AMH and others in doubt should take a look at the Sixteenth Amendment to the U. S. Constitution.

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

http://www.answers.com/topic/amendment-x... Please see this site for interpretation.  

It is clearly Constitutional to levy taxes.

Answer 4

yes it is illegal to not report income to the irs at tax time if it is above a certain amount;

but I know many people who do this...so it's up to you if you want to keep it quiet or not.  You might find out what the limit is that is ok not to report , since you say you don't really need the money, and ask the payee to keep it under that amount. Hope this helps.

Answer 5

Technically there is no where in the Constitution that states that individuals have to pay taxes. Taxes are meant to be paid by businesses. The taxes the govt takes out of our checks are illegal and it's called "Taxation without representation". But since not enough citizens are educating themselves and standing up to the govt. They will pay taxes for life.