Yes, this is exactly what happened to the LQS that I worked for that I mentioned in my earlier reply. It sounds nice, but someone will pay the price.
Originally Posted by QKO
Not to rain on your parade too much, but do make sure you remind your employer to fully report the value of the goods she is giving you in return for your work, both to the IRS and to you on the correct IRS forms. You will, in turn be required to report it as income, which could also affect any government benefits (such as social security) that you are receiving. Also, you and your employer will have to pay into all the other state and/or federal taxes required by employers, such as unemployment, workers comp, etc.
The IRS is now specifically targeting LQS's for hiring and paying workers in this fashion, and the penalties for non-reporting of barter income are severe. If your LQS is caught not reporting income to you, you will also be audited for non-reporting of income.