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Not Paying Taxes

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Let’s face facts, it can get confusing handling a business’s finances. Payroll alone includes having to figure out things like figuring out tax reductions, keeping records, reporting employee’s income, etc and so on. The good news is that there is a way to avoid all of that. You can just pay your employees under the table. For those unfamiliar with the term, paying an employee under the table means they get paid off the record. You give them cash for their time instead of an official paycheck. No taxes, no reporting, and no confusion. This is more commonly found in smaller businesses. There is a catch though, if you are caught paying your employees under the table, a whole world of stress is going to land on your shoulders.

Why do we pay taxes? Because taxes are kind of like the rent we have to pay to live in this country. They pay for our infrastructure, our schools, our government funded programs, and much more. Not everyone likes paying them, but simply put, taxes keep our country in motion. When you don’t pay taxes, you are not doing your part to help keep America moving forward. If that rousing speech didn’t convince you that paying employees under the table isn’t worth the risk, this next part sure will.

Penalties of Not Paying Taxes

You are reliable for the employment taxes that have to be paid for your employees. There is no way …show more content…

They know they are getting paid under the table, and yet are not reporting it to the IRS. This is kind of like being guilty by association. It gets more severe if they ever get audited. If the IRS finds out they have been getting paid more than they are reporting when they are filing their tax returns, they face fines for the taxes, along with potential jail time. It goes without saying if one gets caught, the other gets caught as well. So if you pay employees under the table and get caught, the employees are likely to go down with

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