Tax question- being payed "under the table"?

Question

I work for a small family owned bussiness and my employer has not ever taken taxes out of my checks. She told me in the begging that she would start to take taxes out after 3 months of working there but she never got around to it. I just assumed that I was being payed "under the table". Now she is telling me that she is claiming me and giving me a W9 form to fill out. She told me that I don't have to file and the IRS won't come after we because I'm a "small fish". My question is doesn't she have to pay into my social security fund??? And isn't a W9 suppossed to be filled out at the start of your employment so that the worker knows to set taxes aside. I know that it is against the law not to claim that I worked but it is going to screw me. So no answers saying that it is illegal. I just want to know what my boss is doing wrong so that I can convince her to not claim me. I don't have the money to pay the taxes I didn't think that I had to pay.

I said NO answers telling that this is wrong or illegal....I belive you are the ignorant one for not being able to read the question!! So you pull your head out of the sand. Thanks.

Answer 1

Did you work? Did you get paid? Then why do you think you don't have to pay taxes?

Everyone is REQUIRED to pay taxes on their income. Working for an ignorant boss is not an excuse to be ignorant yourself. Working for an ignorant boss is not an excuse the IRS accepts. So, step up to the plate and pay your taxes. I advise seeking a competent tax advisor so you know how much to claim.

It is a CRIME not to file a return or knowingly filing a false one. It is not a crime to not pay, but you will get penalties and interest on the amount you owe.

Also, not filing will mean you get no Social Security benefits on the money you earned, meaning a lower retirement benefit or disability benefit if you need it.

So get your head out of the sand right now, before you get yourself into real trouble. And find yourself a legitimate job with somebody who isn't dumber than you!

Tax Advisor

Reply to comment: "If you walk like a duck, talk like a duck, and swim like a duck and look like a duck, you probably are a duck, even if your name is Swan".

Answer 2

She's trying to make it right legally by having you fill out a W-9 and giving you a 1099 showing your earnings. OK, it's probably mainly so she can claim what she paid you as expenses for her business, not just that she had some sudden attack of conscience, but still, it's her right to do so (she's required to actually, but that didn't seem to matter to her before). If she does this, you can't stop her.

She can only pay you on a 1099 if your job allows it, not just because she decides to. Read through http://www.irs.gov/faqs/faq-kw54.html - if you feel that you are NOT an independent contractor and that your job duties are as an employee, then you can ask the IRS for a determination, and ir they agree with you, she'd have to pay the back amounts for the employer half of your social security. You'd still be responsible for your half though, and for income taxes.

If she files the 1099, the IRS WILL come after you since they'll have a 1099 that doesn't match a filed tax return. She's wrong when she says you're a small fish and that they won't bother. The computer catches this type of thing.

Answer 3

She's screwing with you. She is really wrong in what she is doing since she's paying you under the table. She is putting you in a really bad spot. I suggest that you find another job immediatley! This operation is illegal and should be reported. You may get into trouble. BTW, Form W-9 isn't filed with the IRS, that's for the employer to get your SS#. She making it sound like she's cleaning up her act but if she hasn't done it yet, she probably won't.

Since you don't have a W-2 you are considered an independant contractor (form 1099). On 1099s they usually withhold any taxes. You are responsible for 15.3% of your income PLUS the federal and state taxes.

I'm sorry but this gal needs to be reported to the feds.

Answer 4

First off you should recieve a 1099, when you work for a family owned business , they dont have to pay social security taxes for you. What you will want to do is tell them that they cant pay you without taking taxes out un less you are an independant contractor, which if you do what they tell you to do at work or you dont recieve commisssion, they will end up in trouble for not paying ss taxes or medicare (fica). So let them know if they try to claim you they will be liable for both your past due social security and fica, but possibly unemployment and workers comp insurance in your state.

Answer 5

Yes she is doing this to cover her butt. She has to take taxes out to claim you. If she do claim you then you are liable for your taxes. Being that you don't know how much, the IRS will do an estimate for the year and subtract that from your refund or you could be in the RED. Either way if she does claim you, they will come after you too.