job doesnt take taxes from pay, how do i file?

Question

i just started a job which i like alot except they dont take out taxes. i didnt fill out any forms or anything other then the original application. its a small bussiness and the owner says he is paying me as a contractor and i have to fill out a 1099. i dont know anything about this so maybe someone has an idea what i can/cant do. when they pay me they give me a photocopy of my time sheet and a check. what do i need to file for taxes? are they trying to pay me under the table?

Answer 1

I hope you are getting paid above market rate for your job because you are going to have to pay your "employer's' share of FICA.

First, work out what expenses you can legally deduct from your pay. The balance is what you pay tax on. If you are earning more than $30,000 I would suggest saving one third of your pay in a separate account to pay your taxes - more if you are well over $30,000. If you earn less than that, you might get away with saving 25% or so.

You will have to make quarterly payments - the first one is due April 17th. Take a look at your tax return for last year. Look at the figure just before your tax withholdings. Divide that by 4 and pay that. Alternatively, get yourself to a small CPA firm who can consider your particular circumstances. What I have done is merely calculate the "safe" position, but that does take money out of your pocket during the year.

Answer 2

Your employer is saying you are not working for him as an employee, but as an independent contractor. That does not sound like your situation. He is avoiding paying his share of your social security. You must file on your earning and Will have to pay self-employed taxes. You are going to owe the government a lot of money. You can deduct all expenses related to your job, with some exceptions. You need to have a professional look at your records. If you have a time sheet and he is paying you by the hour you are not an independent contractor!

Answer 3

Ha, Charles Davidson's answer is laughable at best. The tax system is not voluntary. The power to levy taxes is specifically written in the US constitution and the IRS tax code has been upheld as legally binding in so many court cases that it makes lawsuits against Wal-Mart seem uncommon. Make no mistake: Income Taxes are legally binding. One of two things is happening: 1. You don't have all the fact. Maybe they report their income but their deductions leave them with no tax liability. Maybe they don't have much income after business expenses and the house is paid for with money they made (and reported) years ago. Maybe they're lying out their (can't say that word), and they really do pay their taxes but they want to seem tough and have something to brag about. Unless you've personally been keeping the books for their business, then you don't know what's happening and frankly the IRS won't be interested in hearing about it. 2. Its possible that they are in fact getting away with tax evasion...for now. It happens. Not every crime is found and the criminal prosecuted. The IRS is getting much better about tracking down cheaters and the better their computers get, the more they can cross-check everything and find criminals like your boyfriend's parents (if they really are evading taxes).

Answer 4

This is definitely a question that you wanted to ask as soon as you got the job... You are going to have to hire an accountant to help you with this mess. If you have kept good records of your expenses and earnings, then it will make things easier on them. However, your employer sounds a little shady. If there is some precedent, you may end up having to report him to the IRS when you file. You may even need legal representation in the future due to this behavior. Your employer should have advised you upon your tax responsibilities brought about by his method of paying/not paying your taxes for you.

I found a site that will definitely help with your tax expenses. I had all of my tax expenses paid back to me from them, and could have had a portion of my taxes paid for me as well if I had owed the IRS. Go to the site below, fill out the necessary information, and see how much they will save you.

Answer 5

You'll file a 1040 and a schedule C or C-EZ, and a schedule SE to calculate your self-employment taxes.

Depending on your job and its duties, it might or might not be legal for the company to pay you as a contractor. See http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

Answer 6

Quit

Answer 7

you are an EMPLOYEE not an independent contractor, and you and your boss are EVADING taxes. they ARE paying you under the table. you better get ABOVE the table yesterday !!!!!!!