When employees receive cash, employers usually do not pay the proper payroll taxes.
This is called "pay tax fraud" ("payrolltaxfraud"). Employers may excuse the following grounds:
1 cash, then you will receive more money.
2 small companies or people in this industry are doing.
3 You will not be harmed pay tax.
However, the employer's tax fraud is actually bad for you cause the following things:
1 you can not prove your income (for example, when applying for a loan or renting), because you do not receive your W - 2 and
Check stubs. Without proper proof of income, the income tax return will have the exact difficulty, which would leadGovernment investigation.
2 You might owe the government undeclared taxes but will be a lump sum.
3  Ifyou need  unemployment, disability, retirement social security payments or federal health care benefits, it may not qualify.