Is this illegal work?

[Laure&Colin 279]

Hi everyone,

I'm an LPR, entered the US on a CR1 visa in 2012 and removed conditions on my residency last year. So I'm perfectly authorized to work.

I had a job that I quit in December, and now I've been offered a small part-time gig for a non-profit. To my surprise, the person (this non-profit is basically a one-woman-show) said that she didn't need my SSN and that she will just pay me in cash. I asked more questions about it and she said it wasn't illegal because of the non-profit status.

I'm very confused now because a little online search showed me that non-profits are not exempt of withholding SS, Medicare and income tax. She did mention the word "contractor" but didn't really tell me I needed to work as an independent contractor, nor did she offer me a IC contract to sign.

Is this basically under the table work or am I missing something? What are the risks for me to do that for a few weeks until I find something better?

[Boiler 43,430]

Contractors do their own taxes etc. So she is not offering you a job.

[Sirliner 26]

You don't need an IC contract to work as one, although it would certainly be good to have. The next best thing would be a 1099 form issued at the end of the year. However, sounds like that isn't going to happen unless she takes your SSN. Add paying you in cash and this definitely has the makings of being paid "under the table", as you say. Not sure what you think the risk would be, as there is already a huge thriving cash industry in existence here in the U.S. Drive by any Home Depot store in the morning and notice all those guys standing around the edge of the parking lot waiting for "cash work".

[N-o-l-a 7,167]

She'll need to give you a 1099 at the end of the year if she pays you more than $600, otherwise you are going to have issues with your taxes. It is really simple to do - when I do incidental work for my mother's business, we do one and it takes almost no time at all.

I'd think with non for profit status, these sort of things would be required for proper accounting.

There might be some issues with you not being an actual employee if the work is regular and extends for some time.

Edited March 17, 2015 by N-o-l-a

[VOL 425]

Yes this will be what they call working under the table

[VOL 425]

Hi everyone,

I'm an LPR, entered the US on a CR1 visa in 2012 and removed conditions on my residency last year. So I'm perfectly authorized to work.

I had a job that I quit in December, and now I've been offered a small part-time gig for a non-profit. To my surprise, the person (this non-profit is basically a one-woman-show) said that she didn't need my SSN and that she will just pay me in cash. I asked more questions about it and she said it wasn't illegal because of the non-profit status.

The NFL (National Football League) is Non Profit, you think they pay people cash?

[aaron2020 11,651]

Anytime someone offers to pay you with cash, it's work under the table.

The non-profit would need your SSN for the 1099.

A true non-profit would pay you with a check regardless of whether you are an employee or a contractor.

This is clearly an illegal job.

Edited March 17, 2015 by aaron2020

[Laure&Colin 279]

The problem here is not really being paid cash or by check, but the fact that she wasn't planning to pay the FICA contributions (SS and Medicare) or do any tax withholding.

I'm still not sure about what the risks of working under the table are for a LPR, but I told her I couldn't work like that. I realize that a lot of people do that, especially illegal immigrants, but that's not really my goal in life... I'm authorized to work and have no reason to do that, plus I'd like to make Social Security payments in the hope of retiring one day!

I don't think she really meant to scam anyone, she has never had any paid employees before, just volunteers, so she called her accountant for advice. Still has to hear from him. I found out that you can get paid up to $100 by a non-profit without having to pay any social contributions (source: http://www.ssa.gov/pubs/EN-05-10027.pdf ) so I'm gonna do just enough hours to get to the limit and stop there if she doesn't "officially" hire me.

Thanks everyone for your input!

Edited March 18, 2015 by Laure&Colin

[Laure&Colin 279]

She'll need to give you a 1099 at the end of the year if she pays you more than $600, otherwise you are going to have issues with your taxes. It is really simple to do - when I do incidental work for my mother's business, we do one and it takes almost no time at all.

What happens if the earnings are below $600?

And do you pay the employer part of the Social Security tax when you do that?

[VOL 425]

You don't need a 1099 from anyone to file taxes.

If one or 10 people paid you income, you just file the income made for the year.

You would file as self Employed and then you would pay your own part of FICA.