Under the Table Payments

Paying an Idaho worker “under the table” (off the books) means that the worker is not on the payroll as an employee, payment is usually in cash, and no record is made of the payment. This is usually done to avoid payroll taxes and the expenses of workers’ compensation insurance, or to hire undocumented worker (non-US citizens), both of which are illegal and can get you in more trouble that its worth.

No Defense

If the worker is supposed to be an employee, not only can you get in the same trouble as the independent contractor problems, you have no defense whatsoever when you are mislabeling employees as independent contractors, you can argue the issue and possibly minimize penalties.

Tax Issues

If your “under the table” worker doesn’t file taxes, that’s fraud, and you could well be implicated. Again, an injury on the job could be disastrous. On top of all this misery, since you don’t record the payment, you lose the expense deduction and pay more income taxes.