How do so many business owners get away with paying workers under the table?

How do so many business owners get away with paying workers under the table?

Postby Elnino » Sun Jan 17, 2010 12:03 am

Landscapers, construction companies, etc are paying workers under the table in order to not pay workman's comp benefits, etc. This also allows for the workers to not have to report their income to the IRS. It's running rampant in Robeson County North Carolina and I'm sure in many other places as well. How do we stop this and make everyone carry their full share of the tax burden.


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Elnino

 
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How do so many business owners get away with paying workers under the table?

Postby justinwilliams » Sun Jan 17, 2010 6:50 pm

It's rampant here in Seattle as well. All you really can do is report the company to the IRS if you know of a specific company that does that. This is actually a good question - why can't the IRS figure out that, say, a high earning restaurant only has like two 'on the books' employees?

I actually have a friend from Cuba who is here legally as a resident (he's not a citizen yet), but if he needs a few extra dollars, he can go to work at his 'friend's' restaurant and wash dishes all day (a lot of dishes). What does his 'friend' pay him for 8 hours of hard work? $20 under the table !

I really do get disgusted with businesses who use under-the-table labor. They are selfish and greedy. And I feel sad for the workers, because they haven't paid taxes, so when they become older or become disabled, they won't have any Social Security or medical support. They will be able to find something, of course, like welfare or SSI, but that's far below poverty level income.

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