My new job pays me in cash. Is that weird?

Well, are they taking out the taxes and social security they are supposed to be paying the government? You will get in trouble if you file no taxes on your income.

Yes, it is weird.

It’s not totally unusual.

It costs money to have someone cut the checks – either someone at the bakery would have to do the bookkeeping and such, or they would have to get a service like PayCom or PayChex or ADP.

As long as they are paying you the right amount and reporting your payroll taxes and withholding to the IRS, I wouldn’t lose a ton of sleep about it.

By the way, I’m aware of several companies that pay in cash because their employees are unable to qualify for bank accounts (previous bounced checks, etc.) – maybe your owner has had that experience?

Are they providing you with a pay stub of any sort? Are they going to give you a W-2 or 1099 for your taxes at the end of the year?

My dad writes out checks but still pays all those taxes and stuff. I dont’ know exactly how it works but his book keeper does it for him.

I would insist on a pay record for every pay period so that you have proof of the taxes that were withheld. While this company may be legitimate, it smells a little fishy. And if they say no, ask why not. You do not want this to bite you at tax time. Even if it’s handwritten and signed by someone who has the authority to sign that type of thing for the company, you at least have some kind of proof that the money was dedcuted from your pay/

Are you in the US? If yes, then be very cautious. They might not be claiming you.
They can say they claimed you and they can take out the taxes but at the end of the year when you quit or they lay you off you will find out they kept the money. Get a written record. If you must, write one up yourself and have the manager or boss sign it. Get a receipt book and give the manager a receipt too. Keep a copy. Tell then you need it for your taxes.
You need proof if something goes wrong. And with cash-only jobs it often does

See above.
Nothing wrong with being paid in cash. But you need a paper record to show that you reasonably believed that your mandated tribute to the authorities were withheld by the employer. You need a pay stub, a document of your total wages, and withholding.
Then, if by chance they are not being properly paid, it is the employer’s problem, not yours.

Just make sure they give you the statement of how much went for taxes and social security. They may be paying you under the table. If they get caught you will still be responsive for the government expenses.
If they ARE paying you under the table they probably aren’t paying workers comp either. If you get Hirt on the job you could be screwed.

It’s unusual but not necessarily criminal.

If they are not writing checks which provide a written record then I think @LuckyGuy advice is the best. Keep your own records and have them sign off each time. This protects you.

If they refuse to sign those receipts, that’s a clear sign something isn’t right. Make your decisions accordingly.

(Ugh. Sorry about my awful spelling. ^^^ I’m having a bad day.)

They probably aren’t paying taxes or social security or unemployment for you.
It isn’t legit.

I talked to one of my coworkers today and she said that they pay us in cash because they don’t want to pay the extra taxes.

I’m not an expert, but this sounds pretty fucked up.

That’ll work until somebody figures up what they owe, and turns in their taxes. If the boss hasn’t turned in his own paperwork and taxes on every one of his employees, I’m thinking he’ll be in a world of hurt, and probably lose his company. Not sure if he’d land in jail, but I wouldn’t be surprised.

And since he doesn’t do taxes, it’s a cinch he doesn’t have insurance on his business, so if someone is hurt, they’re on their own, or they’d have to sue to get them to pay.

@snowberry , jinx. Although I was riddled with spelling errors and strange autocorrects.

See, every companies has their different policies. So, don’t worry about it. If they are paying you cash so it will be fine but still you just check their company policies.

If you’ve received any pay yet, was it equal to or less than what the gross pay would be for the time that you worked?

The company can pay in cash legally and still avoid some taxes if they are paying you as a self employed person/contractor. Usually it is still paid by check, but as long as they are providing you with a 1099 at the end of the year it probably all is legal. You will need to pay all your social security and file taxes quarterly if you are being paid enough that you will owe taxes.

Usually companies that pay cash are paying “under the table” though and are not going to report what they pay out or give you a 1099. You need to find out which it is, are they going to report the pay or not.

Just a reminder, if they are not reporting the pay to the government and you don’t either, you are working illegally. There are some exceptions, like if you earn under a certain amount in certain fields it does not need to be reported, but if he has multiple employees he doesn’t fit into that category.

@JLeslie , there are some pretty strict rules about who is a private contractor. One of them is that the employer can’t set your hours. The contractor usually has to have more than one client as well.
Edit: IRS Rules, Contractor vs Employee.;Self-Employed/Independent-Contractor(Self-Employed)-or-Employee%3F
Aw heck. Not sure why the link didn’t work.
Edit again. Try this link

@Judi I worked as a self contracted for only one company at a time, but I guess you mean the company I worked for couldn’t prohibit me from working for a second company? I didn’t have set hours necessarily, but I did basically work a schedule. I don’t understand why it is the businesses responsibility for how many clients the contractor has. I admit to not knowing the laws well though.

There is a possibility the company thinks what they are doing is legal, and plan to report what they pay out, but still they don’t quite meet the legal requirements for hiring contractors.

I think the most likely scenerio is it is all under the table.

My first husband used to work for a cleaning company that wanted to call him an independent contractor. He was totally illegal. He was a Jehovah’s Witness and insisted he work specific hours especially on holidays just to push his anti holiday stance. He provided all the materials and tools (another test for contractor vs employee) and he provided all the direction and training.
I think the OP said she worked in a Bakery? If she is a bookkeeper she might be able to be considered a contractor but if she’s a baker or counter help they would consider her an employee.

The owner was a Jehovah’s Witness? Sorry, I got lost with which “he” you are talking about. The owner only could work certain hours?

I agree if the OP works at the counter or baking she probably shouldn’t be a self contractor.

The owner of the company my first husband worked for was Jehovah’s Witness. He was very controlling with his hours and wanted to make some sort of point by insisting he work every holiday. He then gave us a gift certificate for our anniversary since that’s the only holiday he celebrated.

I see.

I’ve never heard of bakeries having independent contractors. It’s obviously a straight up retail job. ( unless she’s out on the road as a sales rep or something finding corporate accts for the bakery.)

In all likelihood she’s either a front counter person or a kitchen worker. No way they can be legally classified as independent contractors. They may think so but the govt. sure doesn’t.

@judi

Sorry, I was typing and didn’t see your post where you said essentially the same.

My job is selling and frosting cupcakes. I am not an independent contractor.

How the heck do I file taxes and get the information I need to file them? I’ve only worked with having a W-2 and all of this is highly confusing.

Thanks for the help, guys. I am lost when it comes to this taxation mumbo jumbo.

If you work in the bakery frosting and selling cupcakes at a counter they can’t legally pay you like they are most likely. They probably are paying you with no intention of reporting it. Are you ready to quit if they tell you they are paying you under the table when you ask? You have to be ready to quit if it makes you uncomfortable. It is illegal if they are paying you without reporting the money. If you declare the money to the IRS it will basically tip off the IRS they are paying people under the table.

Ask your boss and get it over with. You need to know either way. I don’t understand how you didn’t know when you got hired. Didn’t they tell you they will pay you cash when they hired you? Is your coworker claiming the money on her taxes?

@JLeslie They didn’t discuss it with me. I found out from a coworker. I started working the day that I found out I had a job. It was the weirdest hiring process I have ever been through.

Anyway, I am not ready to quit if I am being paid under the table. I desperately need this job.

Did they ask for your social security number and ID? Make a copy of your driver’s license or passport?

If you do report your taxes (might have to call the IRS or consult some expert), understand that you may lose your job in the fall out. I don’t know what they do to businesses that pull this sort of stunt. Close them down? Reporting your taxes is much better than being fined for not. Let the boss take the heat.

@JLeslie I think they only have my social security number. I had to write it on the job application.

A legit employer has to take a copy of your social security card and license, or a copy of your passport or greencard, etc. if all you did was write your SS on a form they aren’t really following the law.

@JLeslie Should I quit, then? I don’t want to deal with the IRS.

@mambo I am not sure what you mean with deal with the IRS. If you are working illegally and they find out, I would guess at minimum you can wind up paying back taxes plus a penalty, I am not sure what other type of trouble you could be in, I don’t know those laws and punishment. Seems like they would have a tough time figuring out how much you had earned if indeed the company doesn’t keep any records of you. I have no idea for sure what the company is doing. You can ask your boss.

If you never get caught you get more money in your pocket than if the company were paying you as they should. Mostly it’s a matter of conscience. Not paying taxes is not only illegal, but can be an ethical question also. I can’t decide for you. I don’t like to do things that cause me worry or make me feel like I am doing something wrong, so I personally would probably not work there. But, that’s me. How old are you? How much are they paying you?

I’m in my 20’s and I’m getting paid $8/hr.

I’m going to have a further discussion with my employers and take it from there. I don’t like feeling as if I’m doing something wrong, either. I may just start a new job search.