Anonymous wrote:If you're not going to follow what the law says, then do whatever you want. The law is clear on the amount per quarter that triggers the requirement to pay taxes. There's no exception-because-it-seems-silly-to-me-clause.
People pay under the table all the time. I won't do it because I'd rather pay the money than a) open that can of worms such as risking the employee changing her mind about reporting the income or b) any potential legal trouble from an audit, my husband's security clearance review, etc..
If you don't care about any of that, then, whatever.
OP here. I was hoping to get someone to point me to the law, not be judgmental about the question. I'm not actively trying to skirt any law - I just didn't know where to find it (a sticky in FAQs would be nice).
In the interest in being helpful to others instead of blasting them, I've since found IRS Publication 926:
http://www.irs.gov/publications/p926/ar02.html
The answer is: if you pay over $1900/year to an employee, you must pay 15.3% of cash wages in taxes (7.65% their share, 7.65% your share), and if it's over $1000/quarter, then also 6% unemployment tax. Smarter parent here now.