my employer is accusing me of stealing..NOT TRUE!! i was thinking i could fire back at him with something hes doing. He dosent pay us like everywhere else does..like ya kno with tax deductions..he writes us a personal check. Is this illegal?
2006-08-29 15:50:37 · 15 answers · asked by celia t 1 in Politics & Government ➔ Law & Ethics
he owns Kiosks in the mall. Its body jewlery. And he nvr said anything about a 10 99 or anything he just said without tax deductions. He has 2 in our mall and then more in like chicago.
2006-08-29 15:56:20 · update #1
Yes he is doing it wrong.
He is required to have you fill out some type of tax form--W-2 if he is taking out deductions.
--1099-if you are working as an independant contractor, where you are required to calculate and pay taxes Quarterly.
Either way it is needed for him to report how much he is paying employees for services(work).
Any REAL company wants these for thier own tax purposes.
He is definitly breaking the law, just know that if reported and he claims that you were an independant contractor that you might have to pay back taxes with penalties.
Maybe he might have to pay them for you. not sure.
But you knew in the beginning he was giving you more money by not having to pay that amount in taxes, right.
He can't claim now that you were a contractor if you never filled out a 1099 form- it is required.
2006-08-29 16:08:04 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It's only "under the table" if he doesn't report the payments at the end of the tax year. Sounds like he's paying people as independent contractors, rather than employees. Different rules apply. And personal checks are not illegal.
2006-08-29 15:58:01 · answer #2 · answered by coragryph 7 · 0⤊ 0⤋
If you are an employee, he has to withhold federal and state taxes and also pay his portion of the social security tax.
You pay 7 1/2 percent and he is to match this amount and pay it in for your future retirement.
Next he is to pay unemployment on you, if he is not paying his tax, you may not have any benfits if you lost your job.
He is required to withhold these money and put them in special accounts.
If you are not an employee, but you are merely a contract worker, But if you are working as an emplee, he can not do this.
2006-08-29 16:15:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋
He isn't withholding income tax so you are responsible for taxes owed. Also if he doesn't report earnings he won't be paying Social sercuity taxes, The social security is withheld from your earnings and the employer matches your payments. You need a statement of earnings because when you draw Social Sercurtyyou need to keep your records of earnings to check with gov'nt records. I would check with a tax service to see what you need to do about tax owed.
2006-08-29 16:03:49 · answer #4 · answered by longroad 5 · 0⤊ 0⤋
If you don't caught, some people are drawing a disability and they get paid under the table. The reason is their disability check is so small they can't get by with all this high cost of living, I think it's fair to the person that can't report their income. They need to eat and you just gotta do what you gotta do.
2006-08-29 16:02:35 · answer #5 · answered by Nicki 6 · 0⤊ 0⤋
Is he taking out taxes and submitting a W9 for you? If so, it's totally okay. If he's giving you plain cash, then you've got another problem. If he's not taking out taxes then you're liable for them and have to claim a self-employed person., You'll get screwed by the IRS that way!
2006-08-29 15:55:54 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Probably illegal. You can be a subcontractor in any kind of job, if he doesn't control your work hours or methods closely. There are a few other criteria, but this should get you started.
FYI, the IRS will sometimes pay a bounty if you turn them in and help get evidence.
2006-08-29 15:56:01 · answer #7 · answered by Catspaw 6 · 0⤊ 0⤋
Yes it is Definately illegal to do so. this is just an easy way to be paid without any taxes and you are being cheated out on as well. As an american citizen, you are supposed to work for a real job and be paid as an american citizen does.
2006-08-29 15:56:32 · answer #8 · answered by iwasjustawanderinman 2 · 0⤊ 0⤋
Up to a certain amount ($499 a year). Or he declares you a consultant and gives you a 10-99 at the end of each year. If he did and you ignored it, your busted.
2006-08-29 15:53:50 · answer #9 · answered by mikis1967 3 · 0⤊ 0⤋
Depends on the type of work you do. Construction for example, you can be "sub-contracted", and be responsible for filing and reporting you own taxes.
2006-08-29 15:54:50 · answer #10 · answered by jazzylipp 2 · 0⤊ 0⤋