Hunter has been offered a job by a local mechanic who has offered to pay him in cash rather than by paper paycheck, direct deposit, or payroll card. Hunter is excited that the amount of money he will take home each week will be larger since his employer won’t be deducting any taxes from it. His employer wants to hire him for the 10 weeks of his summer break and expects to pay him $300 per week. Which statement below is most likely to be true?
A) Hunter will not need to pay taxes on the income from his summer job because the total amount he will earn is under the amount required for federal tax deductions.
B) It is illegal for Hunter to receive payment for his work in cash. He could be fined for doing so.
C) Hunter will need to pay his federal and state taxes on his own since his employer is not paying these required taxes for him. Hunter’s employer is doing him a favor by offering to pay him in cash.
D) Hunter will potentially earn more by this method of payment.