How Does Being Paid Under The Table Affects Personal Injury Settlement?
When an employer pays you with cash or through another undocumented transfer like Venmo or Paypal, that means that you are being paid “under the table,” or off the record. While receiving immediate monetary income can be a tempting proposition, there are many consequences you can face if you accept that type of pay. One of the main issues is that taxes aren’t being taken out of employee paychecks, so the government has no proof of you working for the company.
Even if the pay seems like a good idea, it can be your downfall in a personal injury case. There are many ways why getting paid under the table can cause challenges. Although with the right lawyer, like our team of workers’ compensation lawyers at Mintz Law Firm, it can be possible to fight and win a personal injury claim after being paid under the table, it’s much better for you to do things right the first time around. Here’s a look at how getting injured while working for cash can impact your worker’s compensation claim.
Yes, you can take legal action against your employer for unpaid or incorrectly paid wages by initiating a claim at the state or federal level. Sometimes, an employer may categorize you as an “independent contractor” as a way to sidestep offering the benefits typically due to employees.
Consequences of Working Under the Table in a Personal Injury Case
If you are injured while working or seek compensation from an employer for negligence and a disregard for your safety, you may encounter problems if you were paid under the table and off the record. In some personal injury cases, your injuries may stop you from working and completing your daily responsibilities. When you are paid under the table, issues involving taxes and proof of income can restrict your right to recover workers’ compensation benefits for the harm you incur due to the accident.
Problems With Proof of Income
In order to recover compensation from your employer, you’ll need to provide proof of income so the courts can determine the amount of money you are eligible to receive. Unfortunately, if you’ve been paid under the table in cash, you won’t have the ability to provide a record of how much you’ve earned up to the point of your injury.
In addition to this, you also won’t be able to provide proof of any past raises and their timing, which could sway the judge regarding your future earning potential in instances where you may soon be eligible for another raise. Consequently, you may not be able to receive financial compensation for lost wages and medical fees.
Consulting an experienced personal injury lawyer can provide crucial assistance in navigating the complexities of proving income and securing fair compensation in personal injury cases.
Tax Complications From Being Paid Under the Table
The majority of people paid in cash generally don’t take it upon themselves to disclose their earnings to the IRS or pay taxes on those earnings. Not only can this get you into serious trouble with the IRS, but it can also complicate and negatively impact your personal injury claim. Unreported taxes create many issues when proving your income for a personal injury claim. A judge is not likely to look favorably on an individual who tries to avoid paying taxes but demands compensation when they are injured.
Can You Seek Medical Treatment After a Work Injury If You’re Not on the Payroll?
Not being paid above board can have significant consequences on your ability to receive medical treatment and manage medical bills, as well as benefits after a work injury in Colorado. Here’s how this arrangement may affect you:
Workers’ Compensation Insurance
Colorado, like other states, mandates that employers need to have workers’ compensation insurance for on-the-job injuries. However, being paid under the table may mean your employment status isn’t officially recognized, potentially leaving you without coverage for medical expenses and lost wages typically provided by workers’ compensation. You may also be unable to access any other Social Security disability benefits that could help you cope with your injury.
Proof of Employment
Proving you were injured while on the job becomes challenging without official employment records. Workers’ compensation claims often require documentation such as pay stubs or tax forms to establish your status as an employee and the work-related nature of the injury.
Legal Implications
Getting paid under the table can lead to legal issues for both you and your employer. This practice is often linked to tax avoidance and can be considered illegal, complicating any legal action you may want to take to seek compensation for your injury. Consulting with a personal injury attorney is crucial to navigate the legal implications of being paid under the table and seeking compensation for injuries, as they bring valuable expertise in handling negotiations, understanding the tax implications, and assessing the full extent of your losses.
Health Insurance
Lack of official employment recognition may mean you don’t have access to employer-provided health insurance. This further limits your ability to cover medical treatments for injuries sustained at work. Injured workers deserve to have access to their workers’ compensation benefits so that they can receive medical attention knowing it’s covered by an insurance company. However, when employment can’t be verified, it leaves workers vulnerable.
Lack of Other Benefits
Formal employment usually comes with additional benefits, such as disability insurance, which supports individuals unable to work due to an injury. People working under the table typically miss out on these essential benefits, which can be especially unfortunate for anyone with working conditions that require substantial physical labor.
The practice of getting paid under the table can severely impact your options for medical treatment and compensation after a work injury. Considering the potential long-term consequences, consulting with an experienced workers’ compensation attorney specializing in labor laws both federal law and state law, or workers’ compensation is crucial. Understanding your rights and exploring legal avenues can help you navigate the complexities associated with such employment arrangements.
Our Workers’ Compensation Lawyers Fight for The Rights of Under-the-Table Employees
Our firm has extensive experience in handling personal injury claims, including navigating the complexities of personal injury lawsuits and meticulously determining the appropriate personal injury settlement amount for our clients. We understand the critical factors that influence the value of personal injury settlements, such as the statute of limitations, the unique circumstances of each case, and the components of compensation like medical costs, lost wages, and pain and suffering. Our approach focuses on maximizing personal injury settlements to ensure our clients receive the compensation they deserve, reflecting our deep understanding of the intricacies involved in these cases.
Although being paid under the table certainly creates complications when fighting a personal injury case, it’s not impossible to win. A highly dependable workers’ compensation attorney at Mintz Law Firm has experience working around these complications and problems to help you recover from your injuries and financial losses. With our positive past results and testimonials from clients, we know that our legal representation can help you and your case.
Our main goal is to make sure you have honest and dependable legal representation for your claim. Often, situations are unavoidable and cause problems in the long run, but with our help, you can feel confident in a workers’ compensation lawyer. We will use our knowledge and resources so your case can have the best possible outcome. Call (303) 462-2999 or fill out our contact form for a free consultation with a workers’ compensation attorney today.