My employer pays me cash and has me fill out a W-4. Am I getting screwed and how is this benefiting him?

Question

No he handed me cash and had me fill out a W-4. Now I also work a full time job, and the cash paying job is part time. Will I have to pay taxes at the end of the year on the cash I've made with him

Answer 1

If he's paying you cash and he's not taking any taxes out and he is reporting it you will have to pay taxes at the end of the year.  He may be putting your tax money in his pocket and not reporting it so you get screwed at the end of the year.  If you filled out the w-4 form and he turned it in he would have to be putting your tax money where he should.  

It's hard to tell until the end of the year but then that's when you will loose.  If he is hiding the information he won't tell the truth even if you do ask unless he giving you some kind of receipt on the taxes.

Answer 2

it depends, is he taking the taxes out before paying you cash? if so its fine otherwise its tax fruad and hes doing it to avoid paying his half of your fed income tax

Answer 3

If he's taking out taxes from your paycheck, and remitting them to the government, no problem - paying in cash is legal.  You should be getting some kind of "pay stub" with each payday though, showing what was withheld.

If he is NOT taking out taxes, then he's also evading paying the required employer taxes on your behalf, like social security and medicare matching amounts, workers comp for if you get hurt on the job, and unemployment for if you get laid off.