'm a nail technician (manicurist) and I've been working for about 2 years. The problem I'm hearing from friends outside of the business is that I need a W2 form from my employer (which I'm not getting since day 1). My employer said I don't need one but my friends said I must get one to get my tax return (I also get no tax return for two years already, I make $10,000+ a year). Could you help explaining to me if I do need or not and about the tax return?
I have consulted with my tax agent and he told me that I would need a W2 from my employer. Any clarifications please? thanks!
2007-03-29 07:28:11 · 7 answers · asked by Hung N 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
As a nail technician, you might be considered an employee or you might be considered an independent contractor, depending on what arrangements you have with the owner of the shop where you work.
If you're an employee, they'd give you a regular paycheck, and take taxes out of it, and you'd get a W-2 at the end of the year showing the total you made and what was deducted
If you're an independent contractor, they wouldn't take out taxes, your pay would probably depend on how much work you do and money you take in rather than how many hours you are there, and you might or might not get a form called a 1099 showing what you were paid. Whether you get a 1099 or not, you are responsible for keeping good records of what you earn, and reporting them annually on a tax return and paying whatever taxes you owe.
You say you haven't gotten a tax return for two years - I assume you're talking about a tax refund, since a tax return is the form that YOU would file. You won't get a refund if you don't pay taxes in, and it doesn't sound like you are. If you haven't been filing an annual return, you probably owe taxes back for as long as you've been working there, plus at this point interest and penalties.
You need to get this straightened out asap. Start by asking your "employer" if you are considered an employee or independent. If they say employee, then they aren't doing what they need to be doing, like withholding taxes from your pay, paying employer taxes on your wages, and giving you a W-2. If they say "independent", your best bet would be to see a CPA (NOT someplace like H&R Block!) and ask them to help you get this straightened out. Until you do, the penalties and interest will just keep growing - and when the IRS catches up to you, you'll owe a very large sum. You say you consulted your "tax agent" - obviously that person is pretty clueless if they didn't even clarify your status, employee or independent - that would have been a very obvious question to ask. See someone else - and make sure they're a CPA (Certified Public Accountant) or what's called an Enrolled Agent. Helping you through this is way beyond H&R Block level of expertise.
Good luck.
2007-03-29 11:55:34 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
Your employer have to issue you either W-2 or 1099-Misc.
According what you mentioned about, your income which is $10,000 + a year, you might or might not owe any tax, it all depends on you filing status and how many dependents are you claiming.
If I were you, I will go to H&R Block (be sure ask for a supervisor or manager) have them to prepare your 2006 return and tell them all your previous years situation.
Chance is you just pay a little service fee and get rid of this problem from your mind.
Good luck and hope this help!
2007-03-29 08:43:27 · answer #2 · answered by DCCCC 1 · 0⤊ 1⤋
Yes, you should be getting a W-2 from your employer. He is supposed to withhold federal, state, social security and medicare taxes from your paycheck and send them into the IRS and the state department of revenue. He is also supposed to pay a matching amount of social security and medicare taxes, as well as federal and state unemployment taxes. With paying social security taxes that will give you credit with the social security administration for having worked, and if social security is still around by the time you are ready to retire then you would get social security. But without a W-2, nobody knows that you are working. Your employer might be trying to get away without paying payroll taxes as well as other expenses by trying to classify you and any other manicurist that your employer has working as independent contractors. Which would mean that he would have to give you a 1099-Misc at the end of the year and then you would be responsible for the entire amount of the social security and medicare taxes. You should push for a W-2 for the years that you have worked for him, and he says no, then you can report him to the IRS.
2007-03-29 16:19:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Well, you're either:
1. an employee of the nailsalon - in this case your boss has to give you a W2.
or
2. an indipendent contractor - this means that you operate as a professional with the nail salon and not for the nail salon. So you're your own boss.(also called a "sole proprietor"). your accountant should be able to help you out if this is the case. If he can't than you may need to find yourself an other accoutant.
In sum if your employer said that you don't need a w2, he's either not doing the right thing or he's treating you as if you are a contracted "company.
Good luck!
2007-03-29 07:40:06 · answer #4 · answered by S A 1 · 0⤊ 0⤋
Your employer is legally required to report what you have been paid. Did your employer withhold federal income tax, social security tax and medicare tax? If not, you may be what is considered a contract worker. Your employer will report your pay on a 1099 Miscellaneous. You will be responsible for the entire amount of Social Security tax as well as the income tax.
2007-03-29 07:39:05 · answer #5 · answered by Susan S 2 · 1⤊ 0⤋
by law your employer must either issue you a W-2 if you are an employee of the company within 30 days after the end of the year or if you are considered an independent contractor they must issue you a 1099 within the same time frame
check the IRS web site
2007-03-29 07:39:06 · answer #6 · answered by goz1111 7 · 1⤊ 0⤋
I haved moved cannot find my w-2s. The state is telling me i never filed. which i have paper work that says i have. they want copies of my w-2s for 2002 and 2003. i have went to my employeer, i am still at the same place but they say they cannot come up with them. i have went to the state and irs they say they have and have sent me the federal but no state. they have sent over 3,500 to the state and have been told i will not get it back until i come up with the w-2s.. i don't know where else to go.. vcan you help??
2007-03-29 12:19:18 · answer #7 · answered by angie g 1 · 0⤊ 1⤋
you dont have to file wih the irs unless you owe money to them. if you have dependents and make over 10 grand a year chances are you dont owe money and they owe you money. your employer must give you a w-2 its against the law to not issue you one. call the irs they have all your records on file and will send you your earning from the past years. then you can file with the papers they send you. your tax consultent should know what to do from there....chill
2007-03-29 07:42:01 · answer #8 · answered by Anonymous · 0⤊ 4⤋