Posted By Sirmabekian
2021
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Is It Illegal For My Employer to Pay Me Cash Under The Table In California?
You may be wondering, “Is it illegal to be paid under the table as an employee?” The choice to do this can be for any number of reasons where employers are concerned. They can avoid paying workers’ compensation insurance, avoid tax obligations, and more. But in California, it is illegal to pay an employee under the table.
California and “Under the Table” Pay
In California, a government agency must be notified of wages being paid. Failure to do so is illegal. Your employer may be avoiding taxes and more by paying you “under the table”. They must pay their fair share of everything listed below through withholdings from your cash payments:
- Overtime compensation
- Workers’ Compensation
- SUI (state unemployment insurance)
- SDI (state disability insurance)
- FUTA (unemployment insurance)
- Federal and state income taxes
- FICA (Social Security and Medicare)
- Various other employment benefits
If an employer is paying you cash but isn’t deducting the above-stated, for these delinquencies, they are potentially liable. Several penalties may result.
Cash Payments from an Employer
If your employer pays you in cash, this is not illegal. But, for them to pay an accurate amount of payroll taxes, it may complicate the process. All payment statements must have the following employee itemized information:
- Applicable hourly rates
- Employer name and address
- Employee name and their Social Security number’s last four digits
- The pay period
- Net wages earned
- All deductions
- If applicable, the piece rate earned
- Unless the employee is salaried, total hours worked
- Gross wages earned
When making cash payments, all employment laws must be complied with by an employer.
Legal Recourse
You might be entitled to damages if your employer paid you under the table. You might have been frauded out of overtime compensation and proper hourly compensation. If this is the case, for the following, the employer may be liable:
- Attorney fees
- Penalties
- Interest
- Unpaid wages
To discuss your employment rights, contact a qualified attorney. For every hour you’ve worked, you’re entitled to compensation. You work hard, after all.
Important Consideration for Contractors, Self-Employed Individuals, and Regular Employees
If you are being paid as a contractor, and thereby receiving cash payments (or payments by check with no deductions taken out for taxes, workers’ comp, etc.), it’s in your best interest to familiarize yourself with AB5/ Labor Code 2750.3 to make sure that both you and your employer are not in violation.
If you are an employee of a company and they are classifying you as a contracted worker to avoid paying taxes, Social Security, Workers’ Comp., etc., this is a violation. They cannot misclassify you for their gain.
Are You Concerned About How You’re Getting Paid?
If you feel that something suspicious might be going on with your employer and how they’re paying you, or how they have classified you, it’s time to contact the professional attorneys at Sirmabekian Law Firm. Our experienced, dedicated, and knowledgeable attorneys will aggressively handle companies that may be in violation of the labor laws in California. We don’t care how big or small the company is.
Contact us today to discuss your case with a free consultation.
