We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What are Cash Wages?

Mary McMahon
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Cash wages are compensation for labor provided in the form of cash, checks, money orders, or direct deposits into employee bank accounts. This contrasts with non-cash forms of compensation including in-kind wages, stock options, and provision of benefits like health care. Many employees worldwide receive their compensation in the form of cash wages.

When an employer provides cash wages to an employee for work, the wages paid must be reported to government authorities. The employer is required to follow minimum wage laws, paying an employee at least minimum wage per hour for the work completed. Employers are required to disclose how much they are paying to employees at the time of hiring and there are laws pertaining to situations where wages can be withheld or otherwise changed without prior agreement. Employees in turn are expected to pay taxes on the cash wages they earn.

Typically, cash wages come with a statement providing a breakdown of the wages. People who are receiving salaries will see their salary information on that statement, while hourly employees can see how many hours of work they are being paid for. The statement discusses any withholding, including voluntary withholding such as payments into retirement plans or shared insurance plans. In addition, if wages are being garnished by court order, this must be disclosed on the statement.

If there is a dispute about the amount paid, such as a belief that an employer did not calculate hours correctly or that the rate of compensation disclosed on the statement is not correct, the employee can bring up the discrepancy with the employer to rectify the situation. If the employer does not respond or fails to resolve the situation satisfactorily, the employee can report the issue to a government agency that oversees the rights of workers. The agency can investigate the situation and assist the employee with recovering the compensation he or she is entitled to. Filing a case in court is sometimes necessary.

There is a common misconception in some regions that receiving payments in cash is not legal. This is the result of confusion about so-called “under the table” compensation, where employers provide payments to employees but do not report them. This compensation is most often provided in the form of cash because it cannot be traced, making it difficult to identify and prosecute people who make under the table payments. Paying in cash is not itself illegal, as long as the payments are reported.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a SmartCapitalMind researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Discussion Comments
Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.