She hand writes me checks me with company logo, but taxes are wack. I obviously need to get a w-2 but as far as taxes for this employer go I will probably owe a lot having not filed a w-4 initially. Should I start filing one now even though its the last 2 weeks of the year. New w-4 kicks in in 2007 right, i dont really get this tax stuff?
2006-12-14 13:02:55 · 5 answers · asked by jvanpatt 1 in Business & Finance ➔ Taxes ➔ United States
If you were supposed to fill out a W-4 and didn't, your employer must withhold taxes at the Single / 0 rate. Which means they'll withhold the maximum amount of taxes from your paycheck. Which is probably why you're saying the taxes are 'wack'. You're seeing less net income because of maximum withholding.
Depending, of course, on the entirety of your financial situation, you might see a refund.
I wouldn't change you W-4 now. But at the first of '07 or even your last pay period, march yourself directly to HR and ask to fill one out. This way you can adjust your withholding so you can decide your tax outcome.
2006-12-15 05:29:49 · answer #1 · answered by Celeste 6 · 0⤊ 0⤋
The W-4 is usually filed by your employer, not you, when you begin working for your employer. It is filed only one time.
By about February of the following year, you should get a W-2 from your employer if you are an actual employee. If your employer considers you as an independent contractor, you should receive a 1099-MISC.
The W-2 will show the taxes you have paid during the year (and your gross wages, from which the taxes are deducted to get your net pay) and you enter that information on the 1040.
The 1099-MISC, on the other hand needs to go on a Shedule C or a Schedule C-EZ, and you pay taxes on your compensation because as an independent contractor, the tax burden is on you. You then write off against that income expenses you incurred on the job but were not paid for and pay 15.3% on the net income.
2006-12-14 21:15:38 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The W-4 is a form you'd normally fill out and give to your employer as a guide to how much federal tax to withhold from your paycheck. It doesn't get filed to the government, but stays with your employer.
Are taxes being withheld from your paychecks? I'm not sure what you mean when you say taxes are wack. If nothing is being withheld, then you're likely to get a 1099 instead of a W-2, and if that's the case, yes, you'll probably owe a lot, and you should have been filing quarterly estimated payments, paying what you're likely to owe for that three months of the year.
If you get W-2 and taxes are being withheld, you'll probably be OK or maybe even get a refund of part of what you paid in.
Once you fill out a W-4 for your employer, you usually don't fill out another one as long as you work for them, unless you've claimed to be exempt from taxes, then you'd have to do a new one each year.
2006-12-14 21:45:19 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
You didn't state if you were hired as an employee or as an independent contractor- check on this now- the company owner and you may have different views on this and you need to be on the same page so you don't discover that you are looking at a larger tax liability AND self-employment tax.
2006-12-16 10:06:20 · answer #4 · answered by besttaxexpert 2 · 0⤊ 0⤋
Start filing NOW, that way you won't get hit with penalties and interest - or if you do, it won't be as much as if you start filing later.
2006-12-14 21:11:16 · answer #5 · answered by Richard H 7 · 0⤊ 1⤋