This does two things, denies the feds their taxes, denies them the health care taxes and allows the under the table employees to qualify for welfare. Dirty pool? I don't think so, I think it is called survival.
Oops, post #44, payed = paid. Sorry about that.
This idea will certainly make the unemployment numbers skyrocket ;)
And the small business she “contracts” for will save money. It can deduct her pay as an “expense” but not have to pay into the SS pool. I would reccommend this business pay this person $1,199 then sign a new contract under a new name. And do this until the end of the year.