I am aware of an employer paying wages as "cash under the table"
I am also aware that the employee receiving the wages is obtaining government assistance as the govt. is unaware of these cash wages.
When I indicated to this employer that I felt this was highly unethical business practice they informed me that they would never get caught, and that they knew what they were doing and the IRS had no way to prove this was going on.
In an instance such as this what are the possible ramifications for the employer and the employee? Is it my moral obligation to report this, and if so, how should I go about doing that?
It bothers me because it is unfair that this employer gains a competitive advantage by avoiding taxes. It bothers me because the employee uses this situation to take advantage of govt. aid. It bothers me also as the employer is suppose to match 1/2 of the employees FICA for retirement.
Any advice or suggestions? Thanks for your help in advance.

