Harm Caused By Unreported Employment
Unreported employment can have harmful effects on a government, and can negatively impact employers and employees.
Unreported employment directly affects the government's ability to fund resources (government spending) by creating a tax gap. This refers to the loss of tax revenue a government makes due to unreported income.
A 2005 UCLA study showed that a then-particularly 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.
Those who are employed under the table, including illegal immigrants, may be denied rights that legally employed workers have, such as minimum wage, various benefits (particularly unemployment benefits), and fair treatment.
Under-the-table employees who lose their jobs may not be entitled to collect unemployment benefits. They have limited causes of action against their employers for issues such as mistreatment, on-the-job work accidents or lack of payment. Employers have limited cause of actions against employees who commit crimes such as embezzlement, theft, or abuse of employer.
Local government revenue agencies (IRS/CRA) look for lifestyles not inline with the income reported. They possess tools that aid in assessing unreported taxes which can result in large fines or jail time for the employer.
Read more about this topic: Unreported Employment
Famous quotes containing the words harm, caused and/or employment:
“Cats seem to go on the principle that it never does any harm to ask for what you want.”
—Joseph Wood Krutch (1893–1970)
“Work-family conflicts—the trade-offs of your money or your life, your job or your child—would not be forced upon women with such sanguine disregard if men experienced the same career stalls caused by the-buck-stops-here responsibility for children.”
—Letty Cottin Pogrebin (20th century)
“What exercise is to the body, employment is to the mind and morals.”
—Henry David Thoreau (1817–1862)