Paying your employees under the table is unfair to them and is against the law. You are robbing them of the benefits they are eligible for, like employment insurance, Canada Pension Plan payments, and workers’ compensation coverage.
Further, if you pay your employee under the table, you could be facing administrative penalties and/or legal repercussions by provincial worker’s compensation boards for failing to report accurate payroll, or failing to report an accident if the worker is injured on the job. In Ontario, for example, the fines for not following provincial workers’ compensation rules can be up to $500,000. You are also putting yourself at risk of being investigated by the CRA which can result in a criminal conviction, fines, and/or jail time.