New Hotline Cracks Down on Underground Employers

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.

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