This paper addresses the factors causing tax evasion on income from wages in Kosovo, who have contributed to revenue shortfall at a satisfactory level for government also affects the welfare of the employees when they will reach retirement age because Kosovo has organized pension system in a way that accounts for the Employed Individual pensions are means each pays and collects about themselves for retirement income. For this reason, the Employed who are not involved in the informal economy and do not shirk from income tax will have a strong base of income to increase their personal welfare but also the welfare of the country in general. To achieve this, this study was focused to answer the question: What are the factors that push businesses in Kosovo that their work activities to engage employed undeclared for tax purposes? Why Employers avoid taxes on wages even when the Employed are notifying the tax authorities? This paper will address exactly that, their deficiencies and Employed businesses and the problems they encounter. The basic method used is survey data and then are further processed and analyzed by descriptive statistical methods different charts. Also work builds on a theoretical analysis by developing a comparative analysis and descriptive.