New boss pays in personal checks. Is that illegal?

This is very illegal! Its tax evasion. He not only is not taking out your taxes, he is likely not paying payroll tax, workers compensation, or social security. This means that not only aren't you paying your federal and state income taxes that you will owe at the end of the year, but if you got hurt on the job, you will not be covered by insurance, and if you were disabled you would not be able to receive any compensation. In the end, this is bad for you and the country as a whole. Call the labor board/franchise tax board on him and you are protected by whistle blower laws from loosing your job.

I would look for a new job in the meantime... but please do not let him get away with this fraud! He is putting you and your financial future at risk. The IRS will destroy you with interest and fees on unpaid taxes.

It's obvious this restaurant owner has no real financial ability, and is probably cash strapped.

I would be worried about the taxes not being taken out and also about not receiving a W-2 at the end of the year.

This may in fact be illegal, and I think you are in for some trouble in the future, one way or another.

FutureBo has given you bad advice that is essentially tax fraud. I would ignore him.

He can legally pay you in cash, or by personal check. But he is legally required to take taxes out, and to give you a stub or something written showing what was deducted.

Quick!! Find a new job. If he is paying you like that, then the business is getting ready to go under.

Yes, if he is not withholding, then you could owe big time, but if he is paying out of the till, then there are no records.

Be safe, find another job, before he closes up shop.

It is " Very Illegal". You are still responsible for your taxes. Contact your state labor board !!!

Don't file your taxes next year.... or at least.. don't report this income because, legally, it doesn't exist..