i had a job well three one job they didnt take any taxes out of my check at all but i have to pay at the end of the year! my question is if they dont take taxes out does the unemployement know about that job? the reason im asking is because i recently applied for unemployment and i put the two jobs that i am no longer working at down and they are only going to pay for one of the jobs and they didnt even mention the other! please answer if you understand what i am asking!
2007-10-30 10:56:35 · 6 answers · asked by notyochic 6 in Business & Finance ➔ Taxes ➔ United States
If the job doesn't take taxes out and you pay them all yourself, you are being treated as an independent contractor or self-employed, and you aren't covered by unemployment comp for that job. So if the job ends, you can't collect unemployment.
If they take taxes out, they also file a report with the state unemployment comp bureau (usually quarterly) and pay a tax to cover you for unemployment comp - the employer pays this tax, you don't pay it.
2007-10-30 16:00:27 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Wartz is correct. What probably happened is you employer called you an independent contractor. He did this because he didn't want to hassle with collecting your taxes and forwarding them to the government, and paying unemployment taxes and workers compensation. See pub 15 p 7 for a definition of an employee vs independent contractor.
If you were an employee the only thing you can do is file form SS-8 for the IRS to make a determination on your status. If settled in you favor the employer will have to pay half your social security taxes and unemployment taxes on you, you will still have to pay income tax and social security taxes on your wages. If you are employed now this won't help you except you may get a back pay of unemployment.
At the end of the year your employer will probably try to send you a 1099 misc. Best to get this done soon before tax season starts.
2007-10-30 13:56:40 · answer #2 · answered by Charlie & Angie G 4 · 0⤊ 0⤋
First time today for this canned answer:
My canned explanation to clueless independent contractors seems to get posted every day:
Some employers try to get around paying employment taxes (social security and unemployment) and other employee benefits like workers compensation insurance by improperly classifying employees as independent contractors. If you are required to show up for work--personally--at a particular time, punch the clock, use the employers equipment and are paid an hourly rate, you are an employee. If you didn't understand the difference when you posed your question, I would be even more convinced that you are an employee. What is your preference, Slotted or Phillips? Complete an IRS Form SS-8 to get an official ruling on your status. This will help you get unemployment if you get fired.
http://www.irs.gov/pub/irs-pdf/fss8.pdf...
2007-10-30 11:46:45 · answer #3 · answered by Anonymous · 1⤊ 1⤋
its simple they know like the other person said by your ssn but taxes and unemployment dont have anything to do with each other.... unemployment pays a percentage of your highest working quarter from the previous 4 quarters that were before u filed. so that is what they did that way you get paid the max you can recieve
2007-10-30 11:33:35 · answer #4 · answered by sarah m 2 · 0⤊ 1⤋
You were self employed. If you are self employed, you are not eligible for unemployment. Sorry!
Wartz' recommendation is a good one. If the IRS determines that you were actually an employee, your former "employer" would be in for a nasty surprise from the IRS. And you'd be in for a windfall, by the way!
2007-10-30 13:47:08 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 2⤋
They know. The company reports your social security number not your tax withholding.
I hope that answers your question.
2007-10-30 11:14:28 · answer #6 · answered by Steveo 5 · 1⤊ 1⤋