Have you been working "under the table"? Working for cash without reporting your income seems to be a great way to go to avoid paying taxes on your income and therefore putting more money in your pocket, but there are pitfalls of working for cash without reporting that you may not have considered according to Lawyer Joe Stanley of Stanley Law.

First and foremost, if you are receiving cash as payment for working for someone and not reporting your income and then you get hurt on the job, Stanley says you can't sue to recover your lost income since that would be admitting you are defrauding the government by not paying taxes on your wages. In a typical situation, an employer has disability insurance which covers employees who get injured on the job but if you are "working under the table" you'll have to cover your own costs. That can add up to thousands of dollars and become very quickly a serious financial situation.

If you are working for anyone and receiving cash (they are not reporting you as an employee) and you don't want to face potential penalties for the IRS, you need to report all your income as a person who is self-employed.

Here are some other things to consider if you are working "under the table": you won't be eligible for workmen's compensation like you would as a legitimate employee, you're not eligible for New York State disability or even family leave. Also, you won't get social security retirement benefits.

Get our free mobile app

With all that said, it's important to consider all these factors and ask yourself if you're really saving enough money by not paying state and federal taxes on your income that it's worth risking all the factors mentioned above, especially the bills you could face if you get hurt and can't work. As if any of those reasons aren't enough to dis-sway you when it comes to not reporting your income, if the IRS finds out you are not reporting your income, you'll be in seriously hot water and literally pay for it. Do you still think it's worth working under the table?

LOOK: Here are 25 ways you could start saving money today

These money-saving tips—from finding discounts to simple changes to your daily habits—can come in handy whether you have a specific savings goal, want to stash away cash for retirement, or just want to pinch pennies. It’s never too late to be more financially savvy. Read on to learn more about how you can start saving now. [From: 25 ways you could be saving money today]

 

KEEP READING: Here are the best places to retire in America

 

More From Star 93.9