Employee/Independent Contractor Tax Dispute...Do I have to pay my employer the taxes or the govt?

Question

My employer for the end of 2006 and beginning of 2007 wasn't withholding my taxes and claimed me as an independent contractor on his taxes. I most definitely was not, and filed an SS-8 request. The govt decided I was an employee, and I've fixed my 2006 tax returns to properly pay the govt.

My employer is now demanding that I pay directly to him the taxes he did not take out for me in 2007, with no proof of how much he paid me or how he arrived at his numbers. I do not trust him (this is a very small business and I had no idea the mess I was getting into). Do I owe them to him to pay to the govt or do I pay the govt directly? Do I have to pay the govt now or when I file my 2007 taxes?

I worked at his business location and did not do any work at home or expend any of my own personal money in any way for this job. I would not be able to claim myself as self-employed because I wasn't.

Answer 1

When you filed the SS-8 and won, the Employer is responsible not only for his matching taxes, but also Yours!!

You owe the government.

For year 2006 the employer must pay the IRS, SSA & Medicare.
For year 2007 the employer must pay the IRS, SSA & Medicare.

You would be responsible for your own state taxes.

By the way - ALWAYS look at your checkstub to see that taxes are being taken out and question everything. If the employer can not show you the Circular E and how he arrived a certain tax amount, then you should dispute it.

Social security is 6.2% of the first $97,500.
Medicare is always 1.45% of all earnings.

Answer 2

Whoa!!! Ok he paid no taxes but yet claimed you as an independent contractor. He owes you a 1099 form, statement of income made from him. You file as an independent business using the 1099 and as an independant contractor you own your own business. You need to look back and get your reciepts together for everything you paid to keep your own business up. File a 1040 and schedule C. There are deductions you can use as a self employed business.

Get with the IRS and retract that SS8. If he claimed you as self-employed, independant contractor, use it to your benefit. The laws are there, and file accordingly as per IRS rules, and use the proper forms. You will come out better this way.

Read all of the deductions and benefit. Did you use any of your home as an office? Did you use your phone for work? Did you have to buy work clothes? Did you have medical expenses?

Go by the IRS guidelines, and you will see you will do a whole lot better than what is going on now. Don't pay anything to your employer, request them give you a 1099.

But as the old saying goes, 'You need to crawl into bed with the IRS' and get this straightened out. And next year?

Answer 3

Your former employer has no records of what you were paid?! I wouldn't trust him either. I wouldn't pay him unless he gets a court order or files a law suit which he won't. I honestly don't know the answer but it seems if you were able to straighten things out with the IRS for 2006 you should be able to do the same for 2007 and be thankful your not working for him in 2008.

Answer 4

You owe the back-taxes to the IRS.

DO NOT give any money to this employer. I think you need a tax attorney, and a job with someone who keeps legitimate books!

Talk to the IRS, technically you owe the money now, but if you inform them of the circumstances, they will likely be very reasonable.

Answer 5

In my opinion, you should pay him nothing!

As long as you pay the feds the income tax and your share of the social security tax that should have been withheld, you should be fine.

He may be trying to bill you for his share of the social security tax which he can not do.

Answer 6

you need a lawyer fast and a 1099 form