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I presume this mostly occurs where the illegal foreigners have built mini empires. Two that come to mind are Flushing and Washington Heights. Then also many businesses that only hire the same ethnicity as the owners ethnicity, followed by businesses with workers who clearly do not speak any English at all, they make no eye contact, and sometimes illegal workers are haughty and laugh at US citizens because they know they get away with committing employment crimes here. They are not unaware of the situation it was just described to them in a different language besides English.
Every business owner in NYC understands the laws and they understand we pay taxes but it is something they know they are allowed to get away with because sadly NYC panders to criminals from foreign countries, usually it is people who do not want to learn English.
If they are questioned they just have to play the poor me card, the I'm an innocent foreigner card, and the most common is the I no speaka no Englesh card.
I think it is wrong to presume. If you really think every "good ole small American business" doesn't have an underground economy, think again. You'll even find plenty of anti-foreigners paying people off of the books. Haven't you ever been to a mechanic shop where they'll charge you less for cash? That's not only to avoid the credit card fees. I think the idea that every worker in a restaurant or bar accounts for every dollar of the cash tips they earn is laughable.
Did you not realize,NYC is immigrant city. Cash still rules!
Not all cash jobs are taxless. some of these workers voluntarily pay tax on half their wages. Not all are without papers.no reported wages, no credit,so.
And your not even talking about the tipped jobs out there, where the tips are more than the hourly,taxed pay. So these jobs get a mention.
Most of the jobs have been posted. And almost every job that deals with serving the public ,will involve cash tips,and offer unreported income.