Johnny Fuller owns and manages Johnny’s Restaurant, a 24-hour restaurant near the city’s medical…

Johnny Fuller owns and manages Johnny’s Restaurant, a 24-hour restaurant near the city’s medical complex. Johnny employs nine full-time employees and 16 part-time employees. He pays all of the full-time employees by cheque, the amounts of which are determined by Johnny’s public accountant, Mary Lake. Johnny pays all of his part-time employees in cash. He calculates their wages and withdraws the cash directly from his cash register.

Mary has repeatedly urged Johnny to pay all employees by cheque. But, as Johnny has told his competitor and friend, Steve Hill, who owns the Greasy Diner, ‘First of all, my part-time employees prefer the cash over a cheque and secondly I don’t withhold or pay any taxes or superannuation on those wages because they go totally unrecorded and unnoticed’.