I was told that the job may only be temporary. I am currently on unemployment, how do a go about stopping my unemployment? Also, how would I pay taxes on the money they will be paying me?
2007-11-09 10:38:38 · 4 answers · asked by robert b 1 in Business & Finance ➔ Taxes ➔ United States
Good for you for being ethical.
If you agree to this arrangement, you should consider yourself an independent contractor. That means keep track of your pay from this employer and claim it on your taxes. When you do your tax return, Social Security taxes will come due, as well as regular income taxes.
Be sure to put some of that money aside every payday in a savings account for just this thing. I would estimate 25% of your pay should go in that savings account.
Last time I was on unemployment, they sent a form every couple of weeks. If you don't return the form, they assume you are no longer claiming the unemployment benefits. In otherwords, they assume you are working.
2007-11-09 10:51:08 · answer #1 · answered by Uncle Pennybags 7 · 1⤊ 0⤋
I have canned explanation to apparently clueless independent contractors:
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. When you file your income tax return, you can attach Form 8919 Uncollected Social Security and Medicare Tax on Wages and only pay the employer's half of social security. You will still have to cough up all the income tax.
2007-11-09 10:47:55 · answer #2 · answered by Anonymous · 2⤊ 0⤋
I would not work for this company. They are appearing not to be honest with tax authorities, so do you really think they will be honest with you? Do you think they are paying their Workers' Compensation plan? This company looks bad.
2007-11-12 00:19:40 · answer #3 · answered by Gary 5 · 0⤊ 0⤋
THEY ARE TRYING TO PAY YOU ILLEGALLY TO AVOID HAVING TO PAY TAXES THEMSELVES.
Taking money this way you are breaking the law as well. Sorry.
2007-11-09 10:42:24 · answer #4 · answered by AriesJWR 4 · 0⤊ 0⤋