Unreported Employment

Unreported employment, colloquially called working under the table, being paid cash-in-hand or moonlighting (in U.K. English), is employment not reported to the state. This is often done by the employer or the employee for tax evasion or circumvention of other laws. Unreported employment is a major factor of the underground economy.

Workers and employers who engage in this practice generally make and receive payments in cash, and the employer often 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 professional certification. While the hiring of the employee may or may not be legal in itself, it is often done when the employer or the employee is intentionally failing to obey one or more laws.

In developed nations unreported employment is a characteristic of the informal sector. This is hidden from the state for tax, social security or labour law purposes but is legal in all other aspects.

Read more about Unreported Employment:  Work Types, Reasons, Harm Caused By Unreported Employment, Beneficial Unreported Employment, Enforcement, See Also, References

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