How do you file taxes when your boss pays under the table?

Answer 1

You don't. That's why he's paying you under the table. You don't pay income taxes on the income (as long as you don't get caught) and he doesn't have to pay payroll taxes on it, but then again, you don't get any credit with social security for what you earned while working for him. It's illegal also, and can land him and you in hot water with the irs if discovered. You are legally required to report the income, but then by the boss paying you under the table he could just give you a 1099 at year end and make you an independent contractor and you would be responsible for paying not only regular income tax, but also self-employment (SE) tax, which is 15.3% of 92.35% of your net self-employment earnings.

PS, you should tell your boss that you don't want to be paid under the table, but don't be surprised if he decides that he doesn't want you working for him anymore. And you should report him to the US Dept of Labor, the IRS, and your State's Dept of Revenue as well.

Answer 2

You are not being paid under the table, your employer will have to report the amount paid to you to the IRS. and more than likely will report it on a 1099 which you will be responsible for the taxes on it. Save your money, you will owe IRS>here is some info from the IRS website: .16 IRS Procedures: W–4 - Allowances, Excess FICA, Students, Withholding What can be done if an employer will not withhold income taxes, social security, and Medicare from my pay? Generally, if an employer does not withhold income taxes, social security, and Medicare from your pay, you are being treated as an independent contractor (self-employed person). If you believe an employee relationship exists and you cannot resolve this matter with your employer, you should submit a Form SS-8 (PDF), Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding. The factors used to determine if an employer-employee relationship exists are covered in Chapter 2 of Publication 15-A (PDF), Employer's Supplemental Tax Guide. If your status as an employee is not at issue, it may be that you are in a category of employment whose earnings are not defined as wages under U.S. federal tax and social security law. Find out from your employer the reason that social security and Medicare taxes and income taxes are not being withheld from your pay. If you have further questions, contact the IRS at 800-829-1040 or visit an IRS walk-in office for assistance. We hired a nanny to look after our baby while we work. How do we pay her social security taxes and properly report her income? A nanny is considered a household employee. A household employer only has to pay social security and Medicare tax only for the employee(s) that receive cash wages that exceed the threshold amount for the year. If the amount paid is less than the threshold, no social security or Medicare tax is owed. If social security and Medicare tax must be paid, you will need to file Form 1040, Schedule H (PDF), Household Employment Taxes. You must withhold the employee's portion of the social security and Medicare unless the employer chooses to pay both the employee's share and the employers share. The taxes are 15.3% of cash wages. Your share is 7.65% and the employee's share is 7.65%. You may also be responsible for paying federal unemployment taxes. For directions on household employees, refer to Publication 926, Household Employer's Tax Guide.

Answer 3

You show the income and any associated allowable expenses on a schedule C, use a schedule SE to calculate your self-employment tax (social security and medicare). The numbers from the bottom of the two schedules transfer to a 1040 to calculate your total tax.

The guy who said you can't file is wrong. You are legally REQUIRED to file.

Answer 4

I disagree with the previous one who said you can file it under "self-employment". You cannot file that unless you are "self-employed". Your employer also need to pay tax too to match your FICA and SDI. For example, the standard rate of FICA is 7.65% from your gross, your boss also pay 7.65% to the Federal. But if you are filing it as self-employed, u r the boss and the employee, u pay double.

Answer 5

i BELIEVE THAT U CANT FILE FOR TAXES...uR BOSS DOES NOT PAY TAXES FOR YOU AND YOU DO NOT PAY TAXES,SO U CANNOT FILE.