When will i have to pay taxes?

Question

ive been working for 3 months in a company that just started and im being payed in cash when will i have to pay taxes for the money
how much will i have to pay i earn $400 a week($80 Daily)
im 18 and single that doe matter right

how and where can i pay my taxes every quarter?
im from San Antonio, Texas

there is nothing fishy i filled out the W-4 form and he said i would have to pay my own taxes but he didnt tell me when and about how much will i have to pay

im a employee

Answer 1

Are you an employee or an independent contractor?

If you are en employee, the company is responsible for withholding taxes from your pay and remitting these on a regular basis to the government. Normally you fill out federal and state withholding forms to indicate what level of income tax withholdings you need. In addition, the employer withholds social security and medicare taxes from your pay and also pays a matching amount into the social security system.

It doesn't sound like you are being treated as an employee, but rather as a contractor, in which case you will need to pay your taxes on a quarterly basis. In addition to your income taxes, you will owe the full amount of the social security and medicare taxes, about 15% of what you make, as "self-employment tax". Since you have already worked three months without making any withholdings, you may already have a large tax liability.

You need to talk to whoever owns this company and clarify whether they are making any tax payments on your behalf. Are you going to receive a W-2 (an employee's tax and wages statement) or a 1099-Misc (a statement given to independent contractors) at the end of the year? If you will be getting a 1099, you will need to find someone (an accountant or a tax service or maybe your parents) to help you set up a system for estimating and making your quarterly tax payments.

If they say they do not plan to report your income to the government at all, be very worried. You may think you can get out of paying taxes, but technically you still owe the money and this would be a sign that this company is operating outside the law, a bad thing. I have to say that a company which has been paying you in cash for three months seems like it is a company that is trying to skirt the law.

You can follow the link below to the IRS website to find some of the forms you will need if you are an independent contractor, in other words, self-employed. If your state has an income tax, you will need to find similar forms on your state website as well.

PS Do not wait until April 15, 2007 to pay your taxes. Your taxes are due on a quarterly basis. If you do not pay money into the tax system as you go along, you will end up owing penalties and interest for underpayment of taxes.

You say you are from Texas, which is good because you do not have an income tax in Texas, so you only have to worry about the federal taxes. Get form 1040-ES from the IRS website to learn how to make quarterly income tax payments.

Answer 2

if you filled out a w-4 and are an employee it is mandatory that your employer treat you as such which means he must take out taxes on your behalf. This guy is screwing you AND most likely evading taxes for his company. IF you were to pay your own taxes then you should have filed out an I-9 form for him and receive a 1099-misc at the end of the year. Your work situation is NOT RIGHT!!!! You must figure out what is going on and correct it. You should move on to another employer and report this one to the IRS for tax evasion. It's up to you, but there is no way I would work for money like that. Get out before you get screwed even more.

Answer 3

I decided to retract my answer because I think that justwondering has a better answer, plus after looking at your edited question it seems that something is amiss with your employer. If you filled out a W-4 form, and you're an employee, then your employer is ABSOLUTELY DEFINITELY responsible for withholding taxes from your pay....this is not an option for them. I can't stress this strong enough. I know this because I work for a small company in Texas and have dealt with payroll taxes for years and years.

If, on the other hand, you are an independant contractor, then it's completely up to you to save your money to pay your income taxes. I think justwondering is correct about paying quarterly for independant contractors.

Answer 4

And the end of the year you will have to pay taxes on the total amount you received. You can estimate on the IRS website how much that will be. It will be much easier on you if you start paying estimated taxes every quarter so you don't get hit with a huge amount to pay the IRS at the end of the year.

Answer 5

You should be paying taxes from the start, unless he is paying you under the table(which is illegal) being 18 does not matter but being single will affect how much is taken out, you need to find out from your employer if he is taking taxes out of your pay and you should receive a w2 at the end of the year.

Answer 6

April 15, 2007 ... but something is fishy if you are being paid in cash...A lot of people who get paid in cash don't report to the IRS..but the will catch up with you if you don't report it..

Answer 7

all your life, always, every time you breathe, in fact you have to pay death tax too!