employee wages

an employee worked only 3 days. my employer wants to pay him as an outside service instead of through payroll. i know it's because he does not want to pay unemployment taxes, workers' comp., etc...is this legal? if it is illegal, can i refuse to pay him except through payroll without repercussions from my employer?

i dont think he qualifies for unemployment, but it is better to pay through payroll and be done with it.

The employer is be liable for social security and Medicare taxes and withheld income tax if you do not deduct and withhold them because of treating an employee as a nonemployee. You also could possibly be liable for helping with that.

An employer can not fire you for refusing to do an act that is against public policy, such as improper handling of payroll. However, a little down the line, the employer could coincidentally fire you for something else.

I very much agree with Lawrat, if you have any choice in the matter.