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legalgems
legalgems, Lawyer
Category: Employment Law
Satisfied Customers: 7443
Experience:  Just Answer consultant at Self employed
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Can you pay an employee in cash as a result of a Wage Hour

Customer Question

Can you pay an employee in cash as a result of a Wage Hour Investigation and what is the required support documentation?
JA: PayPal, Debitcard or credit card are all fine.
Customer: My question is can you pay in Cash and what is the support documentation eg Receipt signed or what?
JA: PayPal, Debitcard or credit card are all fine.
Customer: so are you saying I cannot pay in cash?
JA: No. I'm the Employment Lawyer's Assistant.
Customer: How can I get this question answered and can you refer me to the correct code to read ?
JA: Have you documented this or discussed it with HR?
Customer: I am a small business owner
JA: Is the employment agreement "at will," union, full time or part time?
Customer: The person was part time
JA: Anything else you want the lawyer to know before I connect you?
Customer: I really need to know if I can pay the employee in cash what is the required documentation to support paying in cash and refer me to the code in the Fair Labor Standards Act to support my actions
JA: I'm not sure of the exact price, but there's only a $5 deposit. The rest of the price information will be on the page I send you to.
Customer: I owe the employee $22,000 can I pay this amount in cash and what kind of documentation to I need to provide to the Labor Department and where can I go to read that I can do this if asked by the investigator
Submitted: 2 months ago.
Category: Employment Law
Expert:  legalgems replied 2 months ago.

Hello! I will be reviewing your question and posting a response momentarily; if you have any follow up questions please respond here. Thanks!

Expert:  legalgems replied 2 months ago.

Thank you for your patience as I reviewed the information the assistant provided;

the Act does not address cash payments precisely because it is not illegal.

There is no code/act/statute that precludes paying an employee in cash.

Most people will not pay in cash because the actual payment can be disputed. So if paid in cash it is important to have the employee sign an acknowledgment of receipt.

Also the necessary taxes must be deducted and proper records kept.

Please see:

https://www.irs.gov/uac/irs-warns-businesses-individuals-to-watch-for-questionable-employment-tax-practices

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Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care

Expert:  legalgems replied 2 months ago.

Hi- just checking in to see if you needed clarification on any of the above information. If so please post here (there is no additional charge for this) and I will do my best to get you the requested information.

Thank you!