Originally posted by: alkemyst
Originally posted by: dquan97
Originally posted by: Whade
I didn't see one point in your reasons where they are breaking the law. A waiter isn't entitled minimum wage. It might be a crappy place to work but as far as breaking the law you are going to get laughed at if you turn them in. Just go get a different job if your not happy.
if employers pay in cash, there's a pretty good chance they're not paying the FICA on their wages.
That's important if doing W2's, but if they claim each worker is supposed to be contract/1099 I think that gets them out of responsibility. I am not sure if 1099's have to be issued or if it's just a favor.
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That's IF they qualify as a contractor. From the IRS website:
Independent Contractor
An employer must generally withhold income taxes, withhold and pay social security and Medicare taxes, and pay unemployment tax on wages paid to an employee. An employer does not generally have to withhold or pay any taxes on payments to independent contractors.
The general rule is that an individual is an independent contractor if you (the person for whom the services are performed) have the right to control or direct only the result of the work, and not what will be done and how it will be done or method of accomplishing the result.
People such as lawyers, contractors, subcontractors, public stenographers, and auctioneers who follow an independent trade, business, or profession in which they offer their services to the public, are generally not employees. However, whether such people are employees or independent contractors depends on the facts in each case. The earnings of a person who is working as an independent contractor are subject to Self-Employment (SE) tax.
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