Today I got my first pay check from the church I work for. They took out no taxes what-so-ever.
At one place on the check stub I am listed as a "volunteer custotian" in another place I'm listed as "vendor".
Should I be leary of this pay arrangement?
2007-02-21 09:31:29 · 2 answers · asked by diuadkha h 1 in Business & Finance ➔ Taxes ➔ United States
In addition to Judy's response, which sounds correct, you should figure out what your tax liability will be for this job for the year, and send in estimated tax payments every 3 months, starting in April.
2007-02-21 09:48:27 · answer #1 · answered by Anonymous · 1⤊ 1⤋
I'm not sure why they would list "volunteer" on a pay stub, since that implies no pay.
But "vendor" is saying they're treating you as an independent contractor. You'll have to pay in your own taxes, probably quarterly, and will pay a self-employment tax of 15.3% in addition to any income taxes due - this is to cover social security and medicare - normally the employee pays half of this, and the employer pays the other half, but an independent contractor pays both halves.
2007-02-21 17:36:23 · answer #2 · answered by Judy 7 · 3⤊ 0⤋