Ethics of Claiming Income & Working Legally
If you follow our blog you may have seen the blog about bartenders and jobs that rely on tips for income. No only is it illegal to not report your tip earning, but you also run the risk of insufficient wage loss benefits in the event you have a work injury. Let us explain why it is so important.
In the state of Pennsylvania if you are employed by a person or company you are required by law to carry workers’ compensation insurance. Here is a quote from the first page of a downloadable PDF from the Department of Labor & Industry in Pennsylvania:
“ Workers’ Compensation (WC) is mandatory, employer-financed, no-fault insurance which ensures that employees disabled due to a work-related injury or disease will be compensated for lost wages and provides necessary medical treatment to return them to the workforce.
The workers’ compensation system provides an “exclusive remedy” to employers and employees and is designed to simultaneously achieve the goals of safer workplaces, prompt compensation and treatment of those it protects and reduced litigation costs to all parties.”
[If you are unsure if you are required to carry insurance or be insured click here to review the PA.gov website.]
As the above statement says – this is for the benefit of the company and the employee. If you are injured on the job in the Commonwealth of Pennsylvania, you are entitled to wage loss benefits and medical benefits should your case warrant them.
As great as “cash” or “under the table” may seem it does come with risk. Anyone who has been injured while working will tell you the impact of workers’ compensation. Those that were injured without workers’ compensation found themselves not only out of weekly earnings, but also with a large medical bill and in some cases back pay for taxes on the unclaimed earnings. As you can imagine it can be a mess.
How do you remedy this? Be sure to be officially employed by a company or person where you are filling out an I-9 form and W-2. It is worth noting if you are a contractor or a 1099, this does not apply to you. If you have questions about a work injury or, if you are covered if a work injury should occur, do not hesitate to ask your employer or Robinson Law at 215-530-7166.