Some one told me if you get paid cash by a job you get less money.?

Question

I told that person you got to be OUT OF YOUR MIND! if anything you get paid more because they don't take out tax, health insurance etc. Am I right or wrong?

Example are welcome as well as opinions.

Answer 1

You are very right in the sense of not having to pay tax and insurance. But I have a friend who get's paid by cash, but that means his boss pays him when his boss has the money to pay him. And my friend works pretty hard. Cash-in-hand jobs are a pretty risky business. One time my friend did not get paid for about 4 months and he needed the money really bad but his boss couldn't because he "hadn't got round to it" yet.  

Answer 2

If I paid you $10 hr to clean my house and took taxes out you would bring home around $7 an hour.

If I paid you $10 in cash and you claimed that income on your taxes you would pay around $3 for every hr worked.

If I paid you under the table (not reporting it to the IRS) $10 an hour you would make $10 hr.

So I guess it is all on how you look at it.

Answer 3

you are right!

Answer 4

It is called "getting paid under the table" and it is illegal. Unless you do "odd jobs" for people, then in that case it is ok.

Answer 5

If it's a legit employer, the amount should be the same.  They will deduct tax etc. regardless of how the payment is made.  If they are trying to be different if paying by cash, there is some unreported, illegal, less-than-honest deal happening./

Answer 6

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Answer 7

I agree with you they take taxes out if you work for a regular employer. Think about it, that person is wrong and must be OUT OF THEIR MIND.