Officials in California estimate that $7 billion in payroll tax, workers compensation insurance, and other mandates are lost every year because of underground employment practices, including employers that pay workers under the table, according to a December 2011 article in the Los Angeles Times.

It may be difficult to confirm the correctness of the estimated losses, but one thing is clear – the underground economy is costing the state a significant amount in revenue. http://bit.ly/OM4CFg