He's a sub-contractor and pays his taxes quarterly.
2007-04-03 11:18:46 · 5 answers · asked by easy does it 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
He'd get a 1099, and file a schedule C to show his income and any eligible deductible expenses, and a schedule SE to calculate self-employment tax. The numbers from the bottom of these two schedules would transfer to his 1040.
2007-04-03 11:27:32 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
What's the question? Paying his taxes quarterly is the equivalent of having withholdings. The federal quarterly estimates would be the equivalent of federal withholding, social security, and medicare taxes. The state quarterly estimates would be the equivalent of state withholding.
2007-04-03 18:36:32 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Depending on his annual salary amount, for example; $20k no big deal. However $50k or more and he doesn't report any withholding and he has in the past. It may not be today or next month, but he will be contacted. It's not worth the aggravation. Remember the only 2 things that are constant, DEATH and TAXES...
2007-04-03 18:33:03 · answer #3 · answered by sofawetodd 1 · 0⤊ 0⤋
Technicly its illegal but it happens, you should be getting 2-4 dollars an hour more to compensate you for being a self employed individual cause you are going to have to pay more SS and pay your own state and fed. income tax.
2007-04-03 18:38:55 · answer #4 · answered by wewally 2 · 0⤊ 0⤋
sort of
2007-04-03 18:30:04 · answer #5 · answered by Jo Blo 6 · 0⤊ 1⤋