Richard Eberle owns and manages Richards Restaurant, a 24-hour restaurant near the citys medical complex. Richard employs 9 full-time employees and 16 part-time employees. He pays all of the full-time employees by check, the amounts of which are determined by Richards public accountant, Sidney Farr. Richard pays all of his part-time employees in currency. He computes their wages and withdraws the cash directly from the cash register. Sidney has repeatedly urged Richard to pay all employees by check. But as Richard has told his competitor and friend, Sammy Gall, who owns the Greasy Diner, My part-time employees prefer the currency over a check. Also, I dont withhold or pay any taxes or workers compensation insurance on those cash wages because they go totally unrecorded and unnoticed.

What are the legal considerations regarding Richards handling of his payroll?