Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

Current Events & Hot Topics Current Events & Hot Topics
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 (121-130):
UpSheRises
by Platinum Member on May. 1, 2013 at 9:01 PM

The tax is on the sale of the good...the transaction...not the items purchased. They aren't double taxed.


Quoting BestestMom11:

Yeah, but when you bought that crap new, you paid tax on it.

You don't have to pay tax on it again.


Quoting Veni.Vidi.Vici.:


Quoting Jack_Squat:

I guess it is taboo. I figure the 66,000 we paid in taxes for last year is sufficient. What I make in my hobby is my business. Lol





Quoting Veni.Vidi.Vici.:

I think it's a taboo topic. I don't believe that most people claim all of their earnings and pay taxes on every cent. I'm sure SOME do. meh It's one of those things I wouldn't talk about with others.

I'll tell you what I had a hard time wrapping my mind around...a couple we know completely renovated their home inside and out and then filed for bankruptcy and got to keep their cars and the house but not pay back a cent they charged to 'rebuild' their home.



We've sold our fair share of unwanted items on craigslist and ebay as well as at tag sales and we've yet to claim any of that as income. I give people who want to bemoan crap like that the 'whoop-dee-doo' finger.





Della529
by Matlock on May. 1, 2013 at 9:10 PM

 Yes, for married filing jointly.  19,5 is the minimum income for both incomes.

Working Individuals

In 2012, self-employed individuals netting more than $400 a year must file taxes. Freelancers are considered self-employed. Non-self-employed taxpayers younger than 65 years old must file taxes if they earn more than $9,750 a year.

These minimums are raised to $19,500 for married persons filing jointly and are $3,800 for married persons filing separately. Individuals working for a church falling within IRS tax-exempt rules must file taxes if they earn more than $108.28 a year.

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 9:10 PM

lets try a scenario and see if I am understanding you :-)

A person gets a job and its minimum wage.  13 dollars an hour.

They work 10 hours and get paid $130 gross

The federal tax table states that he will be taxed 20 dollars for this amount

The employer who have to pay employers tax pays $110 to employee and THEN pays his/her requirements to federal taxes based on that wage amount.  Lets say 10% of the gross wage.

So the employee gets $110 and the employer pays that plus 10% on the 130...Employer is out of pocket $143.00

The Employee wage or money given has not been taxed twice.  The employer has seen to their responsibility as an employer which includes taxes being paid for hiring people.

*edited*

Quoting kailu1835:

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.





kailu1835
by Ruby Member on May. 1, 2013 at 9:13 PM
Yes. That's it exactly. I never meant to imply that the employee was paying twice, or the employer, just that 2 people are paying taxes on one sum of money.

Quoting turtle68:

lets try a scenario and see if I am understanding you :-)

A person gets a job and its minimum wage.  13 dollars an hour.

They work 10 hours and get paid $130 gross

The federal tax table states that he will be taxed 20 dollars for this amount

The employer who have to pay employers tax pays $110 to employee and THEN pays his/her requirements to federal taxes based on that wage amount.  Lets say 10% of the gross wage.

So the employee gets $110 and the employer pays that plus 10% on the 130...Employer is out of pocket $143.00

The Employee has not been taxed twice.  The employer has seen to their responsibility as an employer which includes taxes being paid for hiring people.

Quoting kailu1835:

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.





Jack_Squat
by Silver Member on May. 1, 2013 at 9:13 PM
Does that not mean married persons..as in each married person?


Quoting Della529:

 Yes, for married filing jointly.  19,5 is the minimum income for both incomes.



Working Individuals


In 2012, self-employed individuals netting more than $400 a year must file taxes. Freelancers are considered self-employed. Non-self-employed taxpayers younger than 65 years old must file taxes if they earn more than $9,750 a year.


These minimums are raised to $19,500 for married persons filing jointly and are $3,800 for married persons filing separately. Individuals working for a church falling within IRS tax-exempt rules must file taxes if they earn more than $108.28 a year.


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"?



 


 


 


talia-mom
by Gold Member on May. 1, 2013 at 9:21 PM

no


Quoting Jack_Squat:

Does that not mean married persons..as in each married person?


Quoting Della529:

 Yes, for married filing jointly.  19,5 is the minimum income for both incomes.



Working Individuals


In 2012, self-employed individuals netting more than $400 a year must file taxes. Freelancers are considered self-employed. Non-self-employed taxpayers younger than 65 years old must file taxes if they earn more than $9,750 a year.


These minimums are raised to $19,500 for married persons filing jointly and are $3,800 for married persons filing separately. Individuals working for a church falling within IRS tax-exempt rules must file taxes if they earn more than $108.28 a year.


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 9:24 PM

YAY lol

Ok...so my question is, should employers not be responsible for paying these taxes or requirements?

To me these are specific to unemployment, ss, medicare etc.  They are taxes that come as part and parcel for the protection of employees as well as employers.

Should they not pay in and let everyone be responsible for their own?  

For example...if unemployment or redundancy happens, bankruptcy and the company that you have worked for years has no money set aside to be able to pay you out....is that ok?  

SS...well this component is like a savings account for you, a collection of working credit for your retirement.

medicare...IMO a part of societal contribution.

I know this goes off track of the original conversation...Im just being curious / nosey LOL.

Quoting kailu1835:

Yes. That's it exactly. I never meant to imply that the employee was paying twice, or the employer, just that 2 people are paying taxes on one sum of money.



Della529
by Matlock on May. 1, 2013 at 9:25 PM

If you make $300, you pay SS, Med, Federal taxes.

On the $300 paid to you, your employer pays a matching percentage of the SS and Med, plus UC, and WC taxes.

Two entities paid taxes, but it's not double-dipping. 

Quoting kailu1835:

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.






 

 

kailu1835
by Ruby Member on May. 1, 2013 at 9:34 PM
No offense taken :)
I don't believe that the employer should be responsible for my retirement, I believe that I should be responsible for my own retirement care. That includes social security and Medicare. Along those same lines, I don't believe that a business should be held responsible for economic downturn, I believe that I should plan for it. The economic collapse did not come as any great shock, we were well warned, and should have begun preparing immediately. immediately. Most ignored it. It is not their employers responsibility to make sure that they are cared for while out of work. Or rather, it should not be.


Quoting turtle68:

YAY lol

Ok...so my question is, should employers not be responsible for paying these taxes or requirements?

To me these are specific to unemployment, ss, medicare etc.  They are taxes that come as part and parcel for the protection of employees as well as employers.

Should they not pay in and let everyone be responsible for their own?  

For example...if unemployment or redundancy happens, bankruptcy and the company that you have worked for years has no money set aside to be able to pay you out....is that ok?  

SS...well this component is like a savings account for you, a collection of working credit for your retirement.

medicare...IMO a part of societal contribution.

I know this goes off track of the original conversation...Im just being curious / nosey LOL.

Quoting kailu1835:

Yes. That's it exactly. I never meant to imply that the employee was paying twice, or the employer, just that 2 people are paying taxes on one sum of money.





kailu1835
by Ruby Member on May. 1, 2013 at 9:36 PM
I said that it is similar. If two people are paying taxes on the same paycheck, I would call that borderline double dipping, since the government receives "income" twice from the same paycheck, even though it comes from two different people.

Quoting Della529:

If you make $300, you pay SS, Med, Federal taxes.


On the $300 paid to you, your employer pays a matching percentage of the SS and Med, plus UC, and WC taxes.


Two entities paid taxes, but it's not double-dipping. 


Quoting kailu1835:

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.









 


 

Add your quick reply below:
You must be a member to reply to this post.
Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)