The Underground Economy, from Life in the USA: The Complete Guide for Immigrants and Americans

Life in the USA is a complete guide to American life for immigrants and Americans. All materials on this site Copyright © Elliot Essman 2007. All rights reserved.    Home    Back    Next

Life in the USA
Making a Living
Underground Economy

The Underground Economy
Non-Reported Income. Many newcomers to the United States are forced to work "off-the-books" in the "underground economy," either because they do not have legal status or social security cards, because they lack work skills or because they prefer a work environment free of paperwork and government intervention. While such an arrangement is illegal, the government has a difficult time doing anything about it. In an underground economy situation, your wages won't be subject to withholding. You'll be paid in cash, but you won't necessarily be any richer, since you might be paid at a lower rate. Remember, too, that the parts of your wage withholding applicable to health insurance, unemployment insurance and social security are meant to benefit you. You won't have any of these benefits if you work for cash off-the-books.

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Making a Living: Chapter Home

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