Legal Question in Employment Law in Pennsylvania
''under the table''
My family owns a small restaurant. I was wondering...is it ever legal to pay someone cash for small jobs or does it all have to be paid through payroll? If so, is there a limit of how much a person can be paid ''under the table'' per year?
1 Answer from Attorneys
Re: ''under the table''
You asked if it was legal for an employer to employ a person off the books for small jobs.
Technically it is illegal to pay anyone "under the table." Every dollar must be accounted for on the books and also in tax filings on both sides of the transaction.
Generally, gross amounts less than $600 to an individual in a year (not defined as continuos or calendar) may not require reporting though taxes though such amounts must still be accounted for tax purposes on both ends. The easiest was to deal with odd jobs to is have your accountant prepare and provide Form 1099 for such individuals at the end of the tax year.
This advice should not be considered superior to the advice of a tax professional familiar with your specific situation. This message is subject to the notices at http://arjont.com/8.html which are specifically included and made part of this message.
Regards,
Roger Traversa
Email: [email protected]
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