Suppose you just interviewed the perfect worker. He has a great track record, is friendly, is highly recommended, and you know he’ll get along just fine with everyone. There’s one catch though: he wants to work under the table in order to avoid child support.
Maybe he doesn’t think his child’s mother will use the money well, maybe he has other mouths to feed, maybe he needs the money for his own personal use… In any event, this new worker will only come on board if you’ll waive the paperwork and let him save up to 65% of his earnings.
Don’t do it.
Even more incredible than the amount of times this situation occurs is the amount of penalties that employers can incur by facilitating this activity. It’s known as child support fraud, and it can have a heavy impact on your business.
First, by not filling out a new hire form, you subject yourself to at least a $25 penalty. If you conspire with the new hire, then the Commonwealth of Massachusetts ups it to $500. Then, for every dollar that his child was supposed to get, you have to pay two dollars: one to the child’s home, and one to the state as a penalty. Since we’re talking about up to 65% of a weekly salary, you can see how this can add up pretty quickly.
There are also penalties for failing to report taxes and a potential $5,000 penalty for hiring a worker without reporting it to your workers’ compensation insurance company.
The bottom line is that employers need to play by the rules and be wary of “helping a guy out,” because, besides denying his children the support they deserve, it also means putting your money on the line.
If you have any concerns about your employees, then you should call an employment lawyer immediately to make sure you’re not violating the law.
Photo credit: Microsoft
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