 Businesses failing to withhold taxes from their employees' paychecks, paying their employees in cash, and misclassifying their employees as contractors. Learman says most businesses comply with the state's tax laws, but there are some that don't, and business tax fraud could be more widespread than most people think. Kevin McManus, WFMD News. To read more on this and other local stories, go to our website at WFMD.com. 930 WFMD News.