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taxes and getting paid under the table??!!

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 So if a person gets paid under the table and the employer refuses to give them a 1099-T (I think that's what its called) how do you go about paying/filing taxes?

 

by on Jan. 26, 2013 at 10:41 PM
Replies (11-20):
quickbooksworm
by Silver Member on Jan. 26, 2013 at 11:13 PM
1 mom liked this

Self employment tax rate is 13.8%.  BUT, you also get a lot more deductions available to you that wouldn't be if you were a W-2 employee.  Keep that in mind.


Quoting kjms99:

 no i actually quit on thursday when i found out about this tax situation and a few other under handed things there doing! They dont claim us as emplyees at all...its a damn mess, I just want to do the right thing!

Quoting christina0607:

Speak to the employer again. Are you still working for them now? I would expect that to end once you have outed them to the IRS.

You will also pay more in taxes by being self emloyeed rather than an employee. Last I checked its an extra 7%...maybe a little higher.

 



kjms99
by Julie on Jan. 26, 2013 at 11:16 PM

 it was a housecleaning businesss...and i think they dont want to pay workmans comp. and stuff!!!

Quoting christina0607:

Quoting kjms99:


what kind of work is it? Its odd that they wouldn't want to write off that expense.

 

kjms99
by Julie on Jan. 26, 2013 at 11:18 PM

 not trying to sound stupid or naive' but is that good or bad?

 

Quoting quickbooksworm:

Self employment tax rate is 13.8%.  BUT, you also get a lot more deductions available to you that wouldn't be if you were a W-2 employee.  Keep that in mind.

 

Quoting kjms99:

 no i actually quit on thursday when i found out about this tax situation and a few other under handed things there doing! They dont claim us as emplyees at all...its a damn mess, I just want to do the right thing!

Quoting christina0607:

Speak to the employer again. Are you still working for them now? I would expect that to end once you have outed them to the IRS.

You will also pay more in taxes by being self emloyeed rather than an employee. Last I checked its an extra 7%...maybe a little higher.

 

 

 

 

quickbooksworm
by Silver Member on Jan. 26, 2013 at 11:23 PM

Well the self employment tax rate is a bit high, depending on how much you earn and what tax bracket you'd be in if you had been paid as an employee.  But being able to deduct expenses like fuel, mileage on your car, your lunch, clothes, etc will bring down your liability.  Also, if this is the first year you've been 1099, you will not be penalized for not paying self employment taxes quarterly.


Quoting kjms99:

 not trying to sound stupid or naive' but is that good or bad?

 

Quoting quickbooksworm:

Self employment tax rate is 13.8%.  BUT, you also get a lot more deductions available to you that wouldn't be if you were a W-2 employee.  Keep that in mind.


Quoting kjms99:

 no i actually quit on thursday when i found out about this tax situation and a few other under handed things there doing! They dont claim us as emplyees at all...its a damn mess, I just want to do the right thing!

Quoting christina0607:

Speak to the employer again. Are you still working for them now? I would expect that to end once you have outed them to the IRS.

You will also pay more in taxes by being self emloyeed rather than an employee. Last I checked its an extra 7%...maybe a little higher.

 



 



kjms99
by Julie on Jan. 26, 2013 at 11:36 PM

 I was there for 17 mnths.

Quoting quickbooksworm:

Well the self employment tax rate is a bit high, depending on how much you earn and what tax bracket you'd be in if you had been paid as an employee.  But being able to deduct expenses like fuel, mileage on your car, your lunch, clothes, etc will bring down your liability.  Also, if this is the first year you've been 1099, you will not be penalized for not paying self employment taxes quarterly.

 

Quoting kjms99:

 not trying to sound stupid or naive' but is that good or bad?

 

Quoting quickbooksworm:

Self employment tax rate is 13.8%.  BUT, you also get a lot more deductions available to you that wouldn't be if you were a W-2 employee.  Keep that in mind.

 

Quoting kjms99:

 no i actually quit on thursday when i found out about this tax situation and a few other under handed things there doing! They dont claim us as emplyees at all...its a damn mess, I just want to do the right thing!

Quoting christina0607:

Speak to the employer again. Are you still working for them now? I would expect that to end once you have outed them to the IRS.

You will also pay more in taxes by being self emloyeed rather than an employee. Last I checked its an extra 7%...maybe a little higher.

 

 

 

 

 

 

 

JustMe0326
by Platinum Member on Jan. 26, 2013 at 11:53 PM
Oh my...be prepared to get audited...
Posted on CafeMom Mobile
TableforSeven
by on Jan. 26, 2013 at 11:57 PM


How did you handle taxes last year?  

Quoting kjms99:

 I was there for 17 mnths.

Quoting quickbooksworm:

Well the self employment tax rate is a bit high, depending on how much you earn and what tax bracket you'd be in if you had been paid as an employee.  But being able to deduct expenses like fuel, mileage on your car, your lunch, clothes, etc will bring down your liability.  Also, if this is the first year you've been 1099, you will not be penalized for not paying self employment taxes quarterly.


Quoting kjms99:

 not trying to sound stupid or naive' but is that good or bad?

 

Quoting quickbooksworm:

Self employment tax rate is 13.8%.  BUT, you also get a lot more deductions available to you that wouldn't be if you were a W-2 employee.  Keep that in mind.


Quoting kjms99:

 no i actually quit on thursday when i found out about this tax situation and a few other under handed things there doing! They dont claim us as emplyees at all...its a damn mess, I just want to do the right thing!

Quoting christina0607:

Speak to the employer again. Are you still working for them now? I would expect that to end once you have outed them to the IRS.

You will also pay more in taxes by being self emloyeed rather than an employee. Last I checked its an extra 7%...maybe a little higher.

 



 



 



Spoiled_Blonde
by Member on Jan. 27, 2013 at 1:17 AM
1 mom liked this

I have never heard of that, and our tax professional has never said anything about it.. We have been self employed for 4 years and never had to do that, and never been penalized... Hmmm

Quoting quickbooksworm:

Well the self employment tax rate is a bit high, depending on how much you earn and what tax bracket you'd be in if you had been paid as an employee.  But being able to deduct expenses like fuel, mileage on your car, your lunch, clothes, etc will bring down your liability.  Also, if this is the first year you've been 1099, you will not be penalized for not paying self employment taxes quarterly.


Quoting kjms99:

 not trying to sound stupid or naive' but is that good or bad?

 

Quoting quickbooksworm:

Self employment tax rate is 13.8%.  BUT, you also get a lot more deductions available to you that wouldn't be if you were a W-2 employee.  Keep that in mind.


Quoting kjms99:

 no i actually quit on thursday when i found out about this tax situation and a few other under handed things there doing! They dont claim us as emplyees at all...its a damn mess, I just want to do the right thing!

Quoting christina0607:

Speak to the employer again. Are you still working for them now? I would expect that to end once you have outed them to the IRS.

You will also pay more in taxes by being self emloyeed rather than an employee. Last I checked its an extra 7%...maybe a little higher.

 



 




SupermarketMama
by on Jan. 27, 2013 at 1:24 AM
What...ur crazy as hell you been workiing under the table and you wanna pay taxes?! ....chile please .....wouldn't be me ...now let the bashing begin
Posted on CafeMom Mobile
Fields456
by Sexy and I know it on Jan. 27, 2013 at 1:27 AM
If he is getting paid under the table and u file it as a 1099 you will have to pay full taxes on it ( alot of ppl who get 1099s make quarterly payments ). However if the company isn't going to claim it and y'all do they will prob get audited He needs to find out if they will file a 1099 on him of they are they are required to give u his copy

But most ppl who get paid under the table don't claim that income on their taxes. Or claim the minimum amount
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