mereresidency.com

Small businesses often pay people under the table, meaning without any taxes taken out or reported to the IRS. This is illegal, as it deprives the government of the taxes that its citizens are required to pay. It also creates unfair competition with businesses that are legally paying their employees. Additionally, it can lead to higher unemployment, as companies that pay people under the table don't have to abide by the same labor laws as those that do pay legally. Employees who are paid under the table are also not eligible for benefits such as health care or retirement contributions, leaving them in a vulnerable state. Paying people under the table is never a good idea, as it creates a lot of problems and can even lead to criminal charges.