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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 (21-30):
joeynwillsmom
by Silver Member on Jan. 27, 2013 at 1:28 AM
File a schedule k as if it was a business you own/run out (as an independent contractor) of your house if they're not sending you a 1099.



Quoting kjms99:

 I am prepared to pay it, thats why i was asking how do I go about it!



Quoting FooLynRoo:



You got paid under the table, that's illegal.



If you are ready to file taxes (federal) be prepared to pay all the other taxes that you haven't all year too.



 



 



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milfanyway
by Member on Jan. 27, 2013 at 1:31 AM
Talk to a professional preparer. They can help you. I promise. It's a bit complicated, but assuming you file you will not be held liable for their failure to document properly.
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quickbooksworm
by Silver Member on Jan. 27, 2013 at 1:33 AM
I'm a tax person and its quite common for tax people not to talk about it. If you don't pay the 941 quarterly, there are penalties. However its usually just figured in at the end of the year. Every accountant I know uses TurboTax or H&R Block and its not a line item. So it gets forgotten about. Also, while the IRS can penalize you, most times they would prefer to go after larger sums of money instead of individuals.


Quoting Spoiled_Blonde:

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.

 






 






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motamaid
by on Jan. 27, 2013 at 8:02 AM
4 moms liked this
You don't. That is why it is called under the table.
Msgme
by Platinum Member on Jan. 27, 2013 at 8:13 AM

For years I just claimed the money I made without a 1099 or any other form.    Just make sure you have a record of everything you made.  i will tell you I was Audited twice which is why I started using H&R. 

pinkcoffeecup
by Gold Member on Jan. 27, 2013 at 8:55 AM

It's illegal.  I was like 19 and got paid under the table by one job.  Then I didn't know it was illegal. 

BlessedMammaof2
by on Jan. 27, 2013 at 2:26 PM

Call the IRS and report them. Explain that you tried to get the necessary forms and they refused.

Val99
by on Jan. 27, 2013 at 8:41 PM
Getting paid under the table is the same thing as tax evasion, which is a crime. When you take a job you need to ensure taxes are paid by your employer.


Quoting kjms99:

 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?


 


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TableforSeven
by Judy on Jan. 27, 2013 at 10:47 PM
1 mom liked this


There are plenty of places that hire everyone basically as private contractors.  It is up to the employees to file taxes for themselves.  Of course, any legitimate company tells this to their employees up front....not hiding it and/or paying people under the table.

Quoting Val99:

Getting paid under the table is the same thing as tax evasion, which is a crime. When you take a job you need to ensure taxes are paid by your employer.


Quoting kjms99:

 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?


 




Val99
by on Jan. 27, 2013 at 11:05 PM
all of that is determined BEFORE 1 hour of work is performed. Those independent contractors who work for me have to show proof of insurance before they can start.


Quoting TableforSeven:


There are plenty of places that hire everyone basically as private contractors.  It is up to the employees to file taxes for themselves.  Of course, any legitimate company tells this to their employees up front....not hiding it and/or paying people under the table.


Quoting Val99:

Getting paid under the table is the same thing as tax evasion, which is a crime. When you take a job you need to ensure taxes are paid by your employer.





Quoting kjms99:

 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?



 







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