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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 (31-40):
TableforSeven
by on Jan. 27, 2013 at 11:12 PM

....yes....I SAID that any legitimate company informs workers of their tax responsibility BEFORE they start working there.  So I'm not sure what point you are trying to make.

Also - proof of insurance might be required where you work....but isn't a requirement everywhere.  But, again, I don't see that as having any relevance in this post.

Quoting Val99:

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?



 









coolmommy2x
by Ruby Member on Jan. 27, 2013 at 11:13 PM
I don't know about the %age but yes, it's higher.

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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Jers.
by on Jan. 28, 2013 at 4:16 AM

I don't pay quarterly either.

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.

 



 






Ladybugmama86
by Silver Member on Jan. 28, 2013 at 12:43 PM

 How does that work if you babysit and they dont claim it on their taxes? I know they can get a break for paying child care... But if they were to claim it and you were to claim what you made babysitting how do you file that?

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silverdawn99
by Jamie on Jan. 28, 2013 at 12:48 PM

good question

Quoting Ladybugmama86:

 How does that work if you babysit and they dont claim it on their taxes? I know they can get a break for paying child care... But if they were to claim it and you were to claim what you made babysitting how do you file that?


AuntyEm774
by Member on Jan. 29, 2013 at 12:23 AM
1 mom liked this
Babysitting is claimed on a schedule c like any other self employment, unless it a casual job you kid does once in a while, in which case it is usually not claimed. In order for the person paying you to babysit to claim the childcare credit they must have your name, address, and either your ssn or EIN, whichever you use.


Quoting silverdawn99:

good question

Quoting Ladybugmama86:

 How does that work if you babysit and they dont claim it on their taxes? I know they can get a break for paying child care... But if they were to claim it and you were to claim what you made babysitting how do you file that?



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AuntyEm774
by Member on Jan. 29, 2013 at 12:39 AM
Many people that work in housekeeping are treated as independent contractors. In this case you should be given a 1099 if you were paid $600 or more during the calender year. To truly be an independent contractor you must normally be responsible for doing the job without much direct supervision and you normally are responsible for transportation to and from the jobsite or jobsites. You also may have to provide materials or supplies for use at the job.



These type of wages are filed on a schedule c and any income left after taking allowed expenses is subject to self employment taxes (13.3% for 2012). That income is then included with any income from jobs you received a w2 for and used to determine eligibility for credits such as eitc.



You are only required to pay a penalty for not making quarterly tax payments if you owe more than $999 after all credits have been taken. You only file form 941 quarterly (or form 944 annually) if you pay other people to work for you and give them a w2.



You will not be in any kind of trouble for filing on this income, but the IRS may look more closely at the income if you don't have any expenses to deduct against the income.



Keep a log of when and what you received and if you ever get a letter about it from the IRS, provide them with copies of your documentation. (Never send originals, always save them!)


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JoshRachelsMAMA
by JRM on Jan. 29, 2013 at 12:45 AM
1 mom liked this
If you had wanted to "do the right thing" you wouldn't have worked for them to begin with.

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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kjms99
by Julie on Jan. 29, 2013 at 12:09 PM

 well considering Im a single parent andit was the only job I could find and I didnt want to go on PA I thought it would be ok!

Quoting JoshRachelsMAMA:

If you had wanted to "do the right thing" you wouldn't have worked for them to begin with.

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.

 

 

JoshRachelsMAMA
by JRM on Jan. 29, 2013 at 3:35 PM

Ahhh. The "single parent" excuse...

Quoting kjms99:

 well considering Im a single parent andit was the only job I could find and I didnt want to go on PA I thought it would be ok!

Quoting JoshRachelsMAMA:

If you had wanted to "do the right thing" you wouldn't have worked for them to begin with. 
....I am only responsible for what I say,NOT for what you understand.....
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