he sent me a 1099-misc but i fall as a employee status and he claimed me as self employed.. what can i do?
i worked hourly
paid weekly
was not in charge
was told what to do and when
2007-03-31 11:14:18 · 6 answers · asked by jeff c 1 in Business & Finance ➔ Taxes ➔ United States
You can ask the IRS for a ruling on whether you were an employee or an independent contractor, and you'll probably win from your description of your duties. But in the meantime, you should file your tax return and pay what you owe. You tried to cheat and evade taxes, and the guy you were working for double-crossed you on that - but you knew that what he and you were doing wasn't legal, so you've got a problem right along with him.
2007-03-31 11:22:51 · answer #1 · answered by Judy 7 · 3⤊ 0⤋
If you are an employee the employer is required to
withhold taxes for Fed Income, Social Security and Medicare. In addition he must pay a matching amount for your Social Security tax. Many people claim that they are not "employers" and you are just contract labor paid at a set rate. If you do not
have a contract stating what you did and for how much you were an employee. Being paid a specific amount for a specific time period of work is the basic definition of an employee. Contact the IRS, they can assist you. In addition they will probably investigate the "employer" you refer to.
If his actions meet specific standards he will be penalized for failure to withhold income tax from your checks etc. You however must still claim all of the income for tax purposes including Social Security and Medicare tax. I suggest you seek a tax professional to help you with filing.
2007-03-31 11:26:30 · answer #2 · answered by thexrayboy 3 · 1⤊ 0⤋
Fill out the 1040, Schedule C and Schedule SE and pay your taxes. You will owe.....maybe alot.
Afterwards, fill out an SS-8 and have the IRS determine whether you are an employee or not. If they determine that you are indeed an employee, they will refund half of the SE tax and go after the employer for that portion.
Keep in mind, once you do this, you will probably be fired.
2007-04-01 02:35:18 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
He may be paying you in contract labor. Contract labor is a way of them to pay you without having to pay taxes. You might still be responsible to pay taxes though.
2007-03-31 11:23:17 · answer #4 · answered by BIG FRIENDLY 4 · 0⤊ 0⤋
Pay taxes on earned income or you are in trouble....But make sure you take all applicable deductions you are entitled to.
Without details - this is the best I could leave you with.
2007-03-31 11:19:28 · answer #5 · answered by smiling_freds_biz_info 6 · 1⤊ 0⤋
This is a common ruse by small employers to avoid workers comp payments,and contribution to SSA payment.If they want your social security #,thats the tip-off.Don't give it out.This time,you pay to learn your lesson,sorry.
2007-03-31 11:25:26 · answer #6 · answered by Anonymous · 0⤊ 2⤋