I am still confused. If the Employer is paying their employees in cash, how do they do Federal deposits and what about all the employees witholdings? Is this legal, basicly being paid "under the table" and letting the government think it is all "family?"

Well as long as they do they withholdings, and all that then they can pay them in cash.
I used to be paid in cash, although everything was still perfectly legal. (everything withheld and taxes paid, etc)

You employer can pay you in whatever form they want, be it check, cash, money order, loose change, whatever.

Well as long as they do they withholdings, and all that then they can pay them in cash.
I used to be paid in cash, although everything was still perfectly legal. (everything withheld and taxes paid, etc)

You employer can pay you in whatever form they want, be it check, cash, money order, loose change, whatever.

For a fact they are not withoding taxes. Who do I turn them in to?

Well I believe that would be the IRS

If you suspect or know of an individual or company that is not complying with the tax laws, you may report this activity by completing Form 3949-A. You may fill out Form 3949-A online, print it and mail it to:

Internal Revenue Service
Fresno, CA 93888

That's from the IRS Website (http://www.irs.gov/compliance/enforcement/article/0,,id=106778,00.html)

Good luck!

*editted to add this happy little fact*

Although you are not required to identify yourself, it is helpful to do so. Your identity can be kept confidential. You may also be entitled to a reward.

And the state Dept. of Revenue. And the state Employment (Unemployment) agency. And possibly the Worker's Comp Commission in your state (assuming your state requires employers to provide WC insurance) since, if they aren't paying taxes, they're probably not treating you as an employee in any other way.

Did you work for them last year? Did you get a W-2 form or a 1099-MISC? What state are you in? I'm looking to see if not providing a pay stub is a violation of state wage payment laws.