2007-12-02 04:13:31 · 9 answers · asked by Link 1 in Business & Finance ➔ Taxes ➔ United States
The only way to do that is be a "Sub contractor". Meaning that you do not receive any benefits as an employee. You would have to set a Corporation in your State, File for a Fed tax ID, and enter a w-9 Form with the IRS.
Be very careful there are certian perameters you must adhere to in order to be called a subcontractor. Your employer must agree. Its not as easy as you think.
The government will not be cheated out of thier money. Go to www.IRS.gov to figure out if you can be a "sub-contractor"
2007-12-02 04:20:59 · answer #1 · answered by Anonymous · 1⤊ 1⤋
No. A corporation cannot be an employee, only an individual can.
I'm curious though. How do you reckon that this would save taxes? Corporations pay higher taxes than individuals do. The corporate tax rate starts at 15% on the first dollar of profit vs 10% of dollar 8,751 for a Single individual or dollar 17,501 for a married couple filing a joint return. Then, when the corporation paid the wages to you as its employee you'd still pay individual income taxes on the money. You'd pay higher taxes as well there since the corporation would have to pay payroll taxes on the salary it paid you and that would double the Social Security and Medicare taxes you'd be paying.
And forget about the comment about "becoming" an independent contractor. The LAW determines whether you are an employee or IC. It is NOT choosen by mutual assent between the parties.
2007-12-02 04:42:35 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
No you can't, unless it's your corporation and you are working independently for the corporation, not as an employee of the company you are doing the work for. If you're an employee, what you are proposing would be illegal both for you and for the employer.
2007-12-02 04:21:40 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
No you cannot. As an employee, you must take your paychecks personally. Sorry, but this attempt at dodging taxes has been thought of MANY times previously.
2007-12-02 09:32:37 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
Regardless of who the checks are made out to, if you have performed service for the payment, it is taxable income to you.
So no, you can't do this. And it would be illegal for a corporation to accept this "payment" and then return it to you for your personal use so that you could avoid income taxes.
2007-12-02 04:34:06 · answer #5 · answered by ninasgramma 7 · 0⤊ 0⤋
No, the only things that can be taken out, pre-tax are heath insurance benefits, IRA contributions and possibly court ordered garnishments. You can't have your car payment taken out pre-tax, as an example.
2007-12-02 04:19:01 · answer #6 · answered by Joe M 7 · 0⤊ 0⤋
There is another little bit if you become self employed. I believe you get to pay twice as much social security tax.
2007-12-02 04:22:55 · answer #7 · answered by oil field trash 7 · 0⤊ 0⤋
This kind of nonsense has been tried and has a 100% chance of failure. Don't even think about it. If you earn the wages, they are taxable to you. Period.
2007-12-02 07:45:46 · answer #8 · answered by Anonymous · 0⤊ 0⤋
No, you're the employee, not the corporation.
2007-12-02 04:17:39 · answer #9 · answered by Knightly 2 · 1⤊ 0⤋