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Legally, yes, you HAVE TO report it. If they find out about it and you didn't report it, they will come after you. If they catch you, they will come after your employer because he is breaking the law by paying you in cash and not paying employment taxes on it. Everyone involved in this 'under the table' or 'cash' situation is breaking the law. The employer will most likely get off because he will say that he intended to "1099" you come tax time. He will say you are an independent contractor and that it is YOUR responsibility to handle any liability and tax issues. So remember... He will get off and you will get fined... But do people do this left and right? Yep... Don't get paid by check at all... Ask for cash or a check made to cash and NEVER deposit it in to your bank account... Get it 'cashed' for CASH and keep it in a box under your bed. Don't deposit anything! That leaves a paper trail. Wal*Mart only charges like, $1.00 and maybe a % to cash checks. Money Gram and Western Union charges a TON of money... You can get them cashed for free at the bank you have an account at or if you go to the bank that your employer banks at. I am not encouraging you to break the law but if you are going to do it no matter what, do it smart...
Let's see. 2 years from now, your new boss gets audited and the IRS tells him he can't deduct your pay unless he issue you either a W-2 or a 1099-Misc, so he does. Then the IRS audits you because the income wasn't on your tax return. You now owe 30% of that money in tax, penalty and interest. The the IRS shares the tax return with your state who then audits you for fraud for collecting unemployment benefits when you in fact had income. You now owe the state. Both the IRS and the state will try to take collection action. You get another job and your wages are garnished; you file a future tax return and the refunds are always applied to the debt....but the debt keeps on growing.... Short answer, report the income to unemployment. When you file in 2009, report ALL of your income.
1. Getting paid in cash "under the table" is illegal. You have to report this money on your tax return. 2. Since you are now employed, you should not be getting a single penny from unemployment. If you are continuing to cash unemployment checks, you will have to pay that money back.
You have a few options. First, taking money under the table is illegal - so you have to decide if you're Seymour with that. Second, taking unemployment while getting the illegal income can cause issues if the state figures out that you have income. Or, you can choose not to make your unemployment claim on weeks that you've earned an income. Only your conscience can tell you what you want to do with the situation.
If the person has or can get your social then you can bet they will I-9 you for their taxes. Legally you have to report it, but... IANAL, so I can be safely ignored! For those who think it is unfair or wrong to take unemployment: In my state unemployment money is MY GOD DAMN MONEY which I am forced to bank and pay for an administration and I can NEVER get out even the money I pay in, which is total bullsh!t
Yes, you have to report it! It's a job isn't it!? Not to mention that it's obviously the right thing to do! It's not fair for you to have a job AND be collecting unemployment. Don't take advantage of the system. There's many people who need it way worse than you do. I'm sorry if this sounds rude, but that makes me very angry.
The only thing that would make it necessary to report it would be if your employer is going to report it. The term "under the table" usually means "unreported" so no don't report it BUT since its check your employer has a record of it so make sure hes not going to use it as a business expense or something like that.
It is illegal but i have done this twice with going from a full-time job then going to something under the table; first time into construction and second time i collected unemployment while making 100K that year playing online poker full-time so whatever your guilt may be i am sure i have got you beat.
Umm well if you would like to be prosecuted then tell them all about it lol theyr paying u cash because that means they dont have to pay tax on your earnings... if you tell benifits you receive money and have been doing so they will stop your benifits and order you to pay back from the time you started receiving money from your job... and could even do you for denifit fraud
You're committing a crime and the victims are the taxpayers who are paying your unemployment. Don't be a snake. Pay your fair share. The rest of us are hurting too. We shouldn't have to pay YOUR bills.