2007-08-22 05:41:46 · 7 answers · asked by LC 1 in Business & Finance ➔ Taxes ➔ United States
I would look for a new job. A new job that will give you a W2 form at the end of the year. The company that you are working for right now is not doing you any favors. You and your company are not contributing to the Social Security system for one thing. You are penaltizing youself by allowing this type of pay practice to continue. Plus I bet the same company is not paying into Unemployment or Workmen's Compensation. What would happen if you get injured at work?
2007-08-22 13:06:16 · answer #1 · answered by Gary 5 · 0⤊ 0⤋
I was paid as an independent contractor for half of last year and when taxes came due I owed a lot. I had to pay double the Social Security and Medicare that an employee would. When you are paid like this you pay the employee and the employer portion.
Good luck!
2007-08-22 05:55:25 · answer #2 · answered by Kali's Mom 5 · 1⤊ 0⤋
If you haven't paid in any taxes all year, then yes, you'll probably end up paying a lot. If you don't file, you are illegally evading taxes and will end up paying even more if and when you get caught.
2007-08-22 06:01:04 · answer #3 · answered by Judy 7 · 3⤊ 0⤋
The money you are getting is free money....if you report it to the IRS, u will be obligated to pay the appropiate taxes on it. The company that paid you will also be contacted and they will be required to pay taxes. I am sure if they have to pay taxes, you will no longer be getting paid under the table.
2007-08-22 06:02:21 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Truly there can be advantages from being paid off the books but one has to be careful that the records kept by others aren't going to reveal transactions relating to you to the government when the time comes. If their books aren't showing what you've declared "can anyone say audit."
2007-08-22 05:54:48 · answer #5 · answered by Owl 4 · 0⤊ 1⤋
If you file, & your employer hasn't filed for you, you will get them into lots of trouble...as well as you paying lots of back taxes. Leave well enough alone.
2007-08-22 05:54:14 · answer #6 · answered by fairly smart 7 · 0⤊ 2⤋
ABSOLUTELY AND IF YOU DO THE RIGHT THING IT WILL NOT BE HANGING OVER YOUR HEAD
2007-08-22 05:55:16 · answer #7 · answered by Bettee62 6 · 2⤊ 0⤋