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Why do people get so up in arms when someone is working for cash? I can think of many instances where I don't consider it a big deal. If you babysit a friend's kids and get paid, you're technically working under the table.

I bring in a nice income, untaxed. I don't "work", but I still earn money.

Whoooo cares??

I had a friend go off about me earning money that is not taxed. After bragging about getting back more than she paid in. Ooookkkkkk
by on Apr. 30, 2013 at 8:26 PM
Replies (111-120):
quickbooksworm
by Silver Member on May. 1, 2013 at 7:57 PM

Unless you earn more than $600 you don't have to claim it anyway.  Unfortunately, many people work under the table to avoid child support and other wage garnishments.  So in that aspect it is dishonest.

Honestly, with the deductions and credits available to most people, it's worth it to claim the income on your taxes if it's steady work.  I work as an independent contractor for a few companies throughout the year doing bookkeeping and small business development.  I claim everything I make and with the deductions for being head of household and paying child care, I usually end up not paying in.  My "return" goes back to the taxes I would have otherwise owed if I didn't have so many deductions.  

Jack_Squat
by Silver Member on May. 1, 2013 at 7:59 PM


Our retirement is more than secure lol.

Honestly. This is just play money that I win. It's a hobby. 

Quoting cjsbmom:

Look at it this way. You're making lots of money now, but because you're not on the books, you aren't earning anything toward social security or medicaid. When you retire some day, you will have nothing unless you start saving some of your "under the table" cash now. Even then, it might not be enough. 



Euphoric
by Bazinga! on May. 1, 2013 at 8:11 PM

popcorn 

kailu1835
by Ruby Member on May. 1, 2013 at 8:15 PM
It's called employer payroll tax, and is not what is taken out of the employees paycheck. It is based on a percentage of the employees gross. It is definitely a form of double dipping, since two people are paying taxes on one person's check.

Quoting turtle68:

I couldnt find a employee tax...are you sure its not an unemployment tax (certain states employ this) or their social security requirements?

an employees money isnt double taxed....its taxed once from what I can see.

An employer has to abide by state and federal guidelines...if that requires paying a certain percentage...then that is the price of living there and having employees.  But it is not considered double dipping.

Double dipping in taxes is what we have in superannuation....it is tax inclusive when it goes into your super account and taxed at max when it is withdrawn.

Quoting kailu1835:

Employers pay an employee tax. When I nannies full time it was all above board, and my employers used on online resource that immediately took out what they owed from their bank account, and took out taxes from my paycheck. I made 16 bucks an hour, but they were paying closer to 18 an hour to employ me.



Quoting turtle68:

how?

Quoting kailu1835:

Did you know that every penny you earn has been double taxed? Your employer pays taxes on what you earn, and so do you.





Quoting AMBG825:

 Because you should be paying taxes on that money.



Della529
by Matlock on May. 1, 2013 at 8:20 PM

 There are a number of these employer payroll taxes IE> SS, Medicare, Unemployment, Worker's Comp, but the employer isn't double-taxed.  The only thing "doubled" is SS & MC because both the employer and employee are required to pay into the system. 

Quoting kailu1835:

It's called employer payroll tax, and is not what is taken out of the employees paycheck. It is based on a percentage of the employees gross. It is definitely a form of double dipping, since two people are paying taxes on one person's check.

Quoting turtle68:

I couldnt find a employee tax...are you sure its not an unemployment tax (certain states employ this) or their social security requirements?

an employees money isnt double taxed....its taxed once from what I can see.

An employer has to abide by state and federal guidelines...if that requires paying a certain percentage...then that is the price of living there and having employees.  But it is not considered double dipping.

Double dipping in taxes is what we have in superannuation....it is tax inclusive when it goes into your super account and taxed at max when it is withdrawn.

Quoting kailu1835:

Employers pay an employee tax. When I nannies full time it was all above board, and my employers used on online resource that immediately took out what they owed from their bank account, and took out taxes from my paycheck. I made 16 bucks an hour, but they were paying closer to 18 an hour to employ me.



Quoting turtle68:

how?

Quoting kailu1835:

Did you know that every penny you earn has been double taxed? Your employer pays taxes on what you earn, and so do you.





Quoting AMBG825:

 Because you should be paying taxes on that money.



 

kailu1835
by Ruby Member on May. 1, 2013 at 8:24 PM
Let me see if I can explain it better. Say I make 300 bucks. I pay taxes on it. My employer pays taxes on it, but his portion comes out of his pocket, not mine. Two people paid taxes on my 300 bucks. It's not TECHNICALLY double dipping, but it's close.

Quoting Della529:

 There are a number of these employer payroll taxes IE> SS, Medicare, Unemployment, Worker's Comp, but the employer isn't double-taxed.  The only thing "doubled" is SS & MC because both the employer and employee are required to pay into the system. 


Quoting kailu1835:

It's called employer payroll tax, and is not what is taken out of the employees paycheck. It is based on a percentage of the employees gross. It is definitely a form of double dipping, since two people are paying taxes on one person's check.


Quoting turtle68:


I couldnt find a employee tax...are you sure its not an unemployment tax (certain states employ this) or their social security requirements?


an employees money isnt double taxed....its taxed once from what I can see.


An employer has to abide by state and federal guidelines...if that requires paying a certain percentage...then that is the price of living there and having employees.  But it is not considered double dipping.


Double dipping in taxes is what we have in superannuation....it is tax inclusive when it goes into your super account and taxed at max when it is withdrawn.


Quoting kailu1835:

Employers pay an employee tax. When I nannies full time it was all above board, and my employers used on online resource that immediately took out what they owed from their bank account, and took out taxes from my paycheck. I made 16 bucks an hour, but they were paying closer to 18 an hour to employ me.




Quoting turtle68:


how?


Quoting kailu1835:

Did you know that every penny you earn has been double taxed? Your employer pays taxes on what you earn, and so do you.






Quoting AMBG825:


 Because you should be paying taxes on that money.






 

AMBG825
by on May. 1, 2013 at 8:40 PM

 Actually, if she's married filing jointly, she can make up to $19,500 before she has to claim it.

Quoting Della529:

 Hustling pool and cards?

If you make $300 a night and only do it one night a week that's $15,600/year.  The IRS would be concerned.

Quoting Jack_Squat:

When I do my thang, I can usually make up to 300 or more a night, depending on the action available. It's nice for play money. This week I've made 40, but I went out on a monday, and that's the only night I felt like going. Lol


Quoting Della529:

What do you consider to be a "nice income"?


 

 






 

Jack_Squat
by Silver Member on May. 1, 2013 at 8:50 PM
That's what I thought. My husband said that, and then someone posted it. I'm good lol


Quoting AMBG825:

 Actually, if she's married filing jointly, she can make up to $19,500 before she has to claim it.


Quoting Della529:


 Hustling pool and cards?


If you make $300 a night and only do it one night a week that's $15,600/year.  The IRS would be concerned.


Quoting Jack_Squat:

When I do my thang, I can usually make up to 300 or more a night, depending on the action available. It's nice for play money. This week I've made 40, but I went out on a monday, and that's the only night I felt like going. Lol



Quoting Della529:


What do you consider to be a "nice income"?



 


 


turtle68
by Mahinaarangi on May. 1, 2013 at 8:56 PM

could you put a link on?  Honestly not being obnoxious, just curious as to how they are double dipping the employee :-)

I found employer payroll tax and they state specifically the taxes that they are responsible for in regards to each employee.

SS

medicare

Federal unemployment tax

State unemployment tax

These are requirements as a employer.  It is not double taxing the employee.

Quoting kailu1835:

It's called employer payroll tax, and is not what is taken out of the employees paycheck. It is based on a percentage of the employees gross. It is definitely a form of double dipping, since two people are paying taxes on one person's check.

Quoting turtle68:

I couldnt find a employee tax...are you sure its not an unemployment tax (certain states employ this) or their social security requirements?

an employees money isnt double taxed....its taxed once from what I can see.

An employer has to abide by state and federal guidelines...if that requires paying a certain percentage...then that is the price of living there and having employees.  But it is not considered double dipping.

Double dipping in taxes is what we have in superannuation....it is tax inclusive when it goes into your super account and taxed at max when it is withdrawn.

Quoting kailu1835:

Employers pay an employee tax. When I nannies full time it was all above board, and my employers used on online resource that immediately took out what they owed from their bank account, and took out taxes from my paycheck. I made 16 bucks an hour, but they were paying closer to 18 an hour to employ me.



Quoting turtle68:

how?

Quoting kailu1835:

Did you know that every penny you earn has been double taxed? Your employer pays taxes on what you earn, and so do you.





Quoting AMBG825:

 Because you should be paying taxes on that money.




kailu1835
by Ruby Member on May. 1, 2013 at 9:01 PM
I'm on my friends kindle which I'm not used to and having a heck of a time figuring things out :( My point is that my paycheck gets taxed from my pocket, and my employer also pays a tax on it, that is a certain percentage. I know I'm not explaining this well at all :(

Quoting turtle68:

could you put a link on?  Honestly not being obnoxious, just curious as to how they are double dipping the employee :-)

I found employer payroll tax and they state specifically the taxes that they are responsible for in regards to each employee.

SS

medicare

Federal unemployment tax

State unemployment tax

These are requirements as a employer.  It is not double taxing the employee.

Quoting kailu1835:

It's called employer payroll tax, and is not what is taken out of the employees paycheck. It is based on a percentage of the employees gross. It is definitely a form of double dipping, since two people are paying taxes on one person's check.



Quoting turtle68:

I couldnt find a employee tax...are you sure its not an unemployment tax (certain states employ this) or their social security requirements?

an employees money isnt double taxed....its taxed once from what I can see.

An employer has to abide by state and federal guidelines...if that requires paying a certain percentage...then that is the price of living there and having employees.  But it is not considered double dipping.

Double dipping in taxes is what we have in superannuation....it is tax inclusive when it goes into your super account and taxed at max when it is withdrawn.

Quoting kailu1835:

Employers pay an employee tax. When I nannies full time it was all above board, and my employers used on online resource that immediately took out what they owed from their bank account, and took out taxes from my paycheck. I made 16 bucks an hour, but they were paying closer to 18 an hour to employ me.





Quoting turtle68:

how?

Quoting kailu1835:

Did you know that every penny you earn has been double taxed? Your employer pays taxes on what you earn, and so do you.







Quoting AMBG825:

 Because you should be paying taxes on that money.




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