Is it legal for a contractor to pay employees in cash?

Is it legal for a contractor to pay employees in cash?

• A. Yes, if the contractor provides wage deduction statements semimonthly at the time of payment.
• B. No, cash payments are never allowed.
• C. Yes, with no extra documentation.
• D. Yes if paid weekly.

Answer: (A)

Wages can be paid in cash in California, but you must accompany every cash payment with an itemized wage statement at the time of payment. For a semimonthly payroll, that means issuing a wage deduction statement each time a payment is made. This statement should show gross wages, all deductions, and net pay, giving the employee a clear record of what was earned and what was withheld. The requirement isn't that cash is the only allowed method; it's that proper documentation is provided with each payday. The option stating semimonthly wage deduction statements at the time of payment is the correct way to meet California’s wage-recordkeeping rules, whereas claiming no documentation is needed or that cash payments are never allowed would violate those rules.

Wages can be paid in cash in California, but you must accompany every cash payment with an itemized wage statement at the time of payment. For a semimonthly payroll, that means issuing a wage deduction statement each time a payment is made. This statement should show gross wages, all deductions, and net pay, giving the employee a clear record of what was earned and what was withheld. The requirement isn't that cash is the only allowed method; it's that proper documentation is provided with each payday. The option stating semimonthly wage deduction statements at the time of payment is the correct way to meet California’s wage-recordkeeping rules, whereas claiming no documentation is needed or that cash payments are never allowed would violate those rules.