Cash Work in the USA — Risks, Law, Taxes, How to Protect Yourself
Cash work (under the table, off-the-books) is common in Polish communities in the USA — cleaning, construction, childcare, restaurants. Technically LEGAL if earnings are reported on taxes. ILLEGAL if the employee or employer hides income. Consequences for the employee include lack of Social Security credits (crucial for retirement and SSDI), no workers comp in case of an accident, no unemployment benefits, no credit history, and issues with mortgage/credit. Consequences for the employer include IRS penalties of $5,000-$50,000 per employee + criminal liability. Employees CAN legally pay taxes themselves (Schedule C as self-employed) — requires ITIN/SSN, Form 1040 + SE. This is often the safest path for Polish workers in the gray zone.