[Rant] So Explain This To Me.....

[Chibibar]

How the father-in-law pays his employees is his business - most odds and ends part-time work is paid under the table tax free. You still have to report your total earnings to the government and "pay" for those wages. It benefits the father-in-law by not having to shell out outragious health care benefits costs etc...

How the fuck is he responsible for their actions on abusing welfare systems? He is in no way forcing these people to abuse the system. He stated in the post that the worker refuses any kind of work that's not under the table. Are you suggesting that all work should be reported to the government and taxed? All of it? Like a dude fixes your fence and you pay him a wage check? Are you retarded?

Like I said, people make their own choices. I hate this bullshit, nanny, blame the small business owner crap.

The blame is not solely on the business owner, but all small business contribute to the system as a whole.

By law, we are SUPPOSE to report all income. The best way to do it is pay via checks/direct deposit. That way there is a system to track and will out W-2. BUT since cash are involved, there are two folds of this situation.

1. Your FiL can avoid paying SS tax, Medicare, and other taxes when doing wages (I know this cause my Mom is paying them for her workers) Paying cash is not easily trace and can be put under business lost or something. UNLESS your dad IS filing all the taxes and just pay cash (which is ok)

2. The person receiving the cash suppose to report income. Tips for example, are suppose to be reported. This will raise your income bracket and may have to pay taxes (if you get a lot of cash tips) of course with CC charges, it is harder to avoid reporting tips (I did it when I was younger to avoid paying tax on them)

It is a loophole. People do it all the time to save money since Taxes do not generate profit directly (actually to small business it is a lost)