does that mean hes not paying the correct taxes? and if that is true doesnt that mean ill be in trouble when it comes time for me to claim some of that money
2006-09-21 16:11:55 · 17 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
What is a pay-stub? and should i ask for that?
2006-09-21 16:16:45 · update #1
im not an illegal alien
this is my firsy job
and i would be practically entitled to all of the taxes if he is withholding them which i plan to claim..
2006-09-21 16:24:39 · update #2
and the guy is a friend of mine in a way and i love the job so i cant report him or anything
2006-09-21 16:26:56 · update #3
This is in answer to your pay-stub question. When you receiving a paycheck, there is an additional section which outlines your gross pay and all of the taxes that have been deducted: social security, medicare, federal income tax, state income tax, and in some places local income taxes. The check is for the net amount after all these taxes are paid. Your employer is supposed to provide you with this information so you can track how much in taxes is being transmitted to the government, to make sure you will not owe a lot of money to the government at the end of the year.
If you are not an employee but an independent contractor, your employer just pays you your gross pay and you are responsible for making the tax payments, on a quarterly basis. At the end of the year, if you owe taxes and do not have any tax payments credited, you will owe a penalty even if you pay the full amount owed, because our tax system is pay-as-you-go.
If your employer is withholding taxes from your pay but not remitting them to the government, he is in big trouble, but you may have a problem as well. This whole situation sounds fishy. I go along with those who advise you to find a new job then report this employer to the IRS,
2006-09-21 16:28:19 · answer #1 · answered by just♪wondering 7 · 2⤊ 0⤋
It could be OK or it could be bad. In either case, you need to ask why he is paying in cash. Some small contractors don't want to bother with withholding and all that. Or, maybe he is trying to avoid something. You most likely would be considered an independent contractor - self employed. Legally, you would be liable for self-employment tax as well as income tax. The IRS wants to hear form self employed people who make over $400 a year. Depending on how much you make, you may need to make estimated tax payments approximately quarterly or you might end up paying a penalty.
2006-09-22 05:49:19 · answer #2 · answered by curious george 5 · 0⤊ 0⤋
Bad mojo all around. Has he been paying you by check until now? You could say, "Yeah, sure, I accept cash, but I'll still need a statement of the deductions." His response to that will tell you everything you need to know.
The guy is no friend if he's willing to expose you to tax liability.
2006-09-21 16:14:01 · answer #3 · answered by misslabeled 7 · 0⤊ 0⤋
He's not paying taxes for you, he could also be cheating you out of something, if he's going to pay you cash he should at least give you a pay stub. Tax time may be kind of hard for you.
2006-09-21 16:21:53 · answer #4 · answered by prfadfels 3 · 0⤊ 0⤋
No that is not a bad sign. here in our country we got our pay by cash
or checks. but that is ok nothing to worry about you have your human rights if somethings happen.
2006-09-21 16:24:35 · answer #5 · answered by Shekainah 2 · 0⤊ 0⤋
Probably not paying taxes. Bad sign. You are entitled to a pay stub.
2006-09-21 16:19:21 · answer #6 · answered by Lee J 4 · 0⤊ 0⤋
It likely means he is not properly taking out the proper state and federal tax withholding, social security retirement and health benefits and probably not paying workers' comp or unemployment compsation insurance premiums for you.
You will still be responsible for all that (except the work comp and unemployment), if you get paid in cash.
Many people work as independent contractors and get paid cash, but they still need to report the income as you will too.
If you don't take it out when you earn it, you'll likely spend it and then have to come up with a big chunk come April 15th.
2006-09-21 16:17:40 · answer #7 · answered by markmywordz 5 · 0⤊ 0⤋
take the cash make more money you wont have to pay taxes the irs doesnt where cash came from i would rather be paid in cash
2006-09-21 16:18:10 · answer #8 · answered by willy B 1 · 0⤊ 0⤋
Hes not paying taxes or workers comp on you so if you get hurt on the job your screwed. Inless he told you hes going to give you a 1099 form at the end of the year hes trying to avoid taxes. by the way a 1099 form is a tax form that says what you made and you pay taxes all at once. I would be very careful. Is this your first job?
2006-09-21 16:21:56 · answer #9 · answered by Anonymous · 0⤊ 0⤋
He's your friend because he wants you to feel guilty if you think of reporting him. THIS GUY IS UP TO NO GOOD. Chances are he's taking advantage of your lack of knowledge in the work place.
Rule #1;
Listen to your gut feelings. Many times they're right.
2006-09-22 00:24:24 · answer #10 · answered by Common Sense 7 · 0⤊ 0⤋