I work for a small business and I don t get taxed on my paychecks. She says I get a form that I file at the end of the year. But how does that work? Do I have to pay a lot back in tax season?? I make about $800 a paycheck. I can t seem to find anything about the topic on Google.
Get IRS form SS-8 and read through it. According to the small business, you are a contractor because of the work you do.
If you agree, you file a 1040 with a schedule C-EZ and SE attached. At $800 per check, you owe $113 per check in Self-employment tax alone. Income tax is on top of that. If you make $20,800 a year, your income tax would be another $900. (More if you make more.)
If you disagree, you can submit the SS-8 and ask the IRS and the small business to figure it out. If the IRS determines you are an employee, you can file or amend to ask for half of the payroll taxes back.
If they aren't withholding taxes on your behalf, there's a good chance they're breaking the law.
If you're a contractor, then they won't withhold anything, and at the end of the year they'll send you a Form 1099 that tells you and the IRS what they paid you during the year. YOU are 100% responsible for paying not only your income taxes, but also your FICA, FUTA, Medicare, etc. This is a pretty common way to screw over employees. If they exercise any significant degree of control over you and how you do your job, then what they are doing is illegal, and it needs to be corrected ASAP.
If you cannot find anything on Google then you aren't looking. The IRS website should be your go to for tax questions. Most likely your employer is scamming you. Employees have taxes taken out independent contractors do not. There will be 15.3% social security and medicare tax plus whatever your state and federal are on profit.
Your taxes need to be paid quarterly. The next due date is September 15.
If your employer is not paying, then you need to pay the tax yourself. You can do this easily on the IRS website.
While you're there, check whether you count as self-employed. If not, your employer is required to withhold your share of taxes and pay the employer's share of the social security tax.
they are paying you as an independent contractor and you will get a 1099 at the end of the year, you report this income on Sch C and you will owe self employment taxes, Sch SE
about 14.3% of what you get(the $800) is what you pay for your self employment tax, you may or may not be subject to any income tax, if you are single without dependents your non taxable income is $10450 for 2016
if you think your taxes will eventually be $1K or more you need to pre pay on for 1040ES Sept 15 and Jan 15 the portions you expect to owe for that time
She is planning to give you a 1099, not a w–2. Depending on your work situation, this might or might not be legal for he to do. If you meet the rules for being an employee, it's not legal for her. But you still have to pay all the tax that would have been deducted, and more..
If you are being treated like an employee–you have to work set hours at the employer's location and follow orders–then you have to be treated like an employee. Send in and IRS Form SS-8 for an official ruling or contact your state unemployment department and ask them to intervene because right now you are being cheated.
She should be taking taxes out for you…yes you will have to pay quite a bit of taxes back…you should have filled out a form as soon as she hired you…I would definitely be asking her more about this…
You are likely working as a contract worker. You will get a 1099 at the end of the year. And while you pay no tax on the first $6000 or so, you will indeed have to pay some tax if you make over that amount. Put away 10% of your pay fro, every pay for paying your future taxes.
In USA u getting Screwed Ripped off scammed by "employer".
Contact IRS GOV office for WHY.