Legal Question in Employment Law in Florida
Paying under the yable
I recently took an office management position for a small plumbing comapny. I've been with the company for about a month and for the last three weeks the owner has payed everyone cash. When I asked him why, he simply says it's easier that way right now. He doesn't elaberate on what that means but I'm sure it's not good. Last week he shorted me $94 and this week he says we may have to wait until next week to get paid. I'm very frustrated and want to know if he can do this. Needless to say my job search is underway one again.
3 Answers from Attorneys
Re: Paying under the yable
He is probably paying you in cash because he is not withholding your FICA taxes (i.e.- federal income taxes, Social Security taxes, and Medicare taxes) and is going to claim to the IRS that you are independent contractor and not an employer. He would take this action to get out of paying the his 50% contribution towards your Social Security and Medicare taxes. Basically, your employer must contribute whatever you are required to pay towards Social Security and Medicare taxes in an equal amount. At the end of the year, you will get a 1099 instead of a W-2 and will have a big unexpected tax bill for federal taxes, social security, and medicare. To ad to your problem, he is also apparently starting to withhold your wages. I would get another job as soon as possible. This employer sounds like he is not operating on the level. I would keep a work journal regarding what is currently happening at work regarding these type of issues. Most importantly, I recommended that you speak to an employment law attorney immediately.
Re: Paying under the yable
I would document your hours, and be prepared to not get paid. If the amount is small, its not worth fighting. If its over $500, I suggest to take him to small claims court.
Re: Paying under the yable
Paying under the table is unlawful. If you don't report the income to the IRS and pay proper taxes, you can be in trouble if the IRS finds out about him and audits the business.