How is their pay not being taxed? We all get SSI and Federal & State withholding taken right off the top. If you never file a tax return, you will never get it back. Or is there something I'm missing?
If so please let me know, so I can apply it to my own situation! ;D
Ever hear of working off the books?
If you get paid in cash it never gets siphoned away in the first place!
If you're an Indian here on an L1 visa, you can avoid a lot of the US taxes. On an L1 visa, you are transferred here to work in the "US office" of a corp whose home office is in India. Your paycheck can be direct-deposited to your account in India by the India home office. You have thus not earned income in the US, and have no taxable US income. Or the US office can cut you a check for living expenses in the US to make it look good, and you get your "bonus" upon return to India.
A company I worked for had offices in Detroit, and also across the river in Canada. We had a Canadian network tech working in our office in Detroit. He had no US work visa. He would drive across as a "tourist", and do work. They just paid him out of one of the Canadian branches