I quit my job already, but while I was there I was getting paid 350 a week cash-working as a secretary. Do I have to pay taxes or do they???
2007-08-08 04:45:40 · 12 answers · asked by rose 1 in Business & Finance ➔ Taxes ➔ United States
If you were an employee then both of you do. They would have to take social security, 6.2%, and medicare, 1.45%, taxes out of your $350 a week, and they have to pay a matching amount to the irs. Depending on how many exemptions you claimed on your W-4 they may or may not have taken federal and/or state withholding from your paycheck. They also have to pay Federal and State unemployment based on how much they pay you, up to a set limit of pay.
If you were an independent contractor then you would be responsible for both the employee and employer share of social security and medicare. You wouldn't have to pay Federal or state unemployment though.
2007-08-08 04:49:28 · answer #1 · answered by Anonymous · 4⤊ 0⤋
PS. How can you quit a job if you're a contractor. I thought this wasn't the way it worked.. hmmmm I dont' know. But I think Job is Employee. (smiles)
Enough responses have been made. Ask revenue for a determination to see if you are a contractor or an employee they have a form for that too. Call 1800-829-1040 and they will help you. I would. May not be funny at the end of year. Do you have proof of working there etc. best start gathering it up. You may very well need it.
Okay this is the number one prong for this one. The numero uno all in the same pinata prong. Control. How much control do they have. Aka we do contracted accounting there is little doubt employers do not have that over our work. We come and go when we want to, we set work hours convenient to them, we pay our own insurance, we work for multiple people, we can come and go as we wish, we can make calls to clients while working with a client, control control control not I am an employee employee employee. We don't quit our jobs, we just tell you we are not going to do it anymore. We send you letter we say get lost. We are done with this one. Adios muchachos and we explain why.
Ask revenue to determine they will help. Believe this one. There is no better advice.
There are prongs and employers just can't say okay you're a contractor. Oh really now lol.... Okay, so not everyone of us know the Tax Codes. Understandable.
And PS we are an accounting firm.
Have a great day.
BC Business Services, Inc.
http://www.bcbsinc.com
2007-08-11 20:12:09 · answer #2 · answered by Info@bcbsinc.com 2 · 0⤊ 0⤋
You do. They are also supposed to pay a matching amount for your social security and medicare, and various other employer taxes, but if they are paying you cash, it doesn't sound like they are. That's illegal of course. If you don't report your income and pay the taxes on it, then you are also breaking the law.
And whatever majormomma says, it's very possible that you will get caught, and be in trouble with the IRS, and have to pay penalties and interest in addition to the taxes you were supposed to pay in the first place. And if you go to get a loan or a mortgage, you'll have a problem too, since your income won't show anywhere.
2007-08-08 12:14:39 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
They paid you cash so they could avoid paying employer payroll taxes, which is a violation of federal law. If you are angry at them and want to cause trouble, just report them to the IRS.
Technically speaking you are supposed to pay tax on any earned income, including cash pay. However, your employer didn't take out and pay withholding taxes to the IRS, so if you declare the income now, you will have to pay all the taxes owed in a lump sum. I hope you have some money stashed away in the bank.
Most people never declare the income because it would be difficult for the government to find out that you were ever paid the money. Plus the government isn't going to audit you if your income is low. However, you would be breaking the law not to declare the income and pay the taxes owed.
2007-08-08 11:55:04 · answer #4 · answered by majormomma 6 · 0⤊ 1⤋
Were you subcontracted as a temp, or you hired as an employee? If you were a contract employee, then you are responsible.
In any case, you should have paid federal, state and local taxes (depending on where you live), FICA and Medicare.
Your employer (or you if you are 1099). is responsible for company FICA, company Med. There is also unemployment and disability taxes that may be due depending on your status.
Contact your employer and find out if they intend on giving you a W2 or a 1099. If the answer is neither, then they intend the job to under the table (which is illegal). I doubt they will give you a w2 because they will incur a liability of tax due (in addition to you). It will either be 1099 (you owe), or under the table.
2007-08-08 11:50:03 · answer #5 · answered by mark 7 · 1⤊ 0⤋
Legally, you have to pay tax on it if you earned more than $650 while working for them. They paid you cash under the table to avoid having to pay their share of your social security tax, which means you are now responsible for all of that as well. It's a very crooked practice (IMO) and one where most people don't realize until tax time how bad they were getting screwed by working for "cash."
They are required to supply you with a 1099 at tax time if you earned more than $650, but chances are they won't. However, just because they don't report it to you or the IRS doesn't mean you aren't liable for the taxes on it.
Get ready for a hefty tax bill, and kudos to you for leaving such a dishonest employer.
2007-08-08 12:18:19 · answer #6 · answered by sortaclarksville 5 · 0⤊ 1⤋
You are responsible for any taxes. If they do not send you a W2 or a 1099, the government will not have record of the income paid to you. If they do find out that you were paid and did not file, they may come after you for tax evasion.
Simple rule, if you have income, you are responsible to file and pay tax. If you do not it is tax evasion. If you decide not to file: To quote Dirty Harry, "do you fell lucky."
2007-08-08 11:54:03 · answer #7 · answered by Willie J 5 · 2⤊ 0⤋
Being paid in cash - you are going to be responsible for the taxes. Will they issue you a 1099? If so you use that form to file taxes.
2007-08-08 11:54:02 · answer #8 · answered by Cristi H 4 · 1⤊ 0⤋
If you get a 1099 form from them next year, you will have to pay your share and their share of your taxes and social security and medicare. If you get a W2 from them, then your taxes are paid already.
2007-08-08 11:54:59 · answer #9 · answered by Lola 6 · 1⤊ 0⤋
If your place of employment didn't withhold income taxes and fica, you are responsible for paying them.
2007-08-08 11:49:53 · answer #10 · answered by Suzy 5 · 1⤊ 0⤋