Unreported employment

Unreported employment, often referred to colloquially as "working under the table", is the performance of employment that is not reported as required by law to the appropriate local, state or provincial, or national government agency. This is often done by the employer or employee in order to dodge one or more laws in one of these jurisdictions. Workers and employers who engage in this practice generally make and receive payments in cash, and often, the employer does not check the employee's background or credentials as is sometimes required by law or otherwise expected by the industry's client base, such as a license or certification. While the hiring of the employee may or may not be legal in itself, this is often done when the employer or employee is intentionally failing to obey one or more laws.

Common types of jobs that are performed under the table include:
*Domestic work, such as housekeeping or babysitting
*Contracting work
*Taxicab service (sometimes known as hacking)
*Various types of self-employment

Reasons one may work or employ a worker under the table may include:
*Cheaper labor or avoidance of minimum wage laws
*Avoidance of taxes
*Exceeding allowable income by a person receiving certain benefits, such as unemployment or disability
*Avoidance of wage garnishment or payment of child support
*Illegal immigration
*Fugitive status

Harm caused by unreported employment

Unreported employment can have various harmful effects on society.

A UCLA study showed that a weak economy in the state of California was the result of more than two million workers who were receiving their pay off the books without paying taxes [http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2005/09/28/BUG92EURPQ1.DTL&type=business] .

Many of those who are employed under the table, including illegal immigrants, may be denied rights that employed persons have, such as minimum wage, various benefits, and fair treatment [http://www.nytimes.com/2006/06/19/business/19illegals.html] .

Those who work under the table cause themselves their own harm, as they do not pay Social Security taxes for their own benefit [http://goliath.ecnext.com/coms2/summary_0199-1937344_ITM] .

Under-the-table employees who lose their jobs may not be entitled to collect unemployment benefits.

Enforcement

Very often, when an employee is working under the table, an employer is hiring employees to do so, or a person is running an unreported cash-based business, detection by authorities is difficult, and many such operations take place without any attempts to prosecute. Some examples may include one who mows lawns in a neighborhood or the rental of a portion of one's house.

In the United States, however, federal authorities in recent years have been cracking down on illegal immigrants who are employed by large companies.

References

* [http://www.immigration-info.us/immigration.html US Immigration and working under the table]