to file or not to file end of year taxes ?

Discussion in 'Business Operations' started by mario, Dec 7, 2004.

  1. mario

    mario LawnSite Member
    Messages: 2

    I work for a small landscaping company total of three people including my boss i usaully work less than 40 hrs. per wk. and only work from march until november. My question is my boss pays me with a personal check with no deductions taken out of my check but at the end of the year he sends me 1099 for taxes. Now i was talking to a friend of mine who owns a business and explained to him what i just wrote and he said that i did not have file at the end of year my earnings because he was paying me with a personal check and not taking out any deductions that this is considered like getting paide under the table. Is this true?
  2. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Messages: 4,899


  3. cleancutccl

    cleancutccl LawnSite Senior Member
    Messages: 698

    If your boss sent you a 1099 you must show that as income or just expect to get audited, because your boss is showing it on his tax return. Next year you should demand to get paid wages, your just shorting yourself money that you earned throughout the year by having to pay self employment taxes as a contract laborer instead of an wage employee for the company.
  4. ztoro

    ztoro LawnSite Senior Member
    Messages: 735

    if you get a 1099 you need to report it...... If you dont get a 1099 legally you have to report it , but if you dont you are only guilty if they catch you...... The only thing under the table is cash, with no form of tracking it...
  5. grass_cuttin_fool

    grass_cuttin_fool LawnSite Gold Member
    Messages: 3,526

    If you make $600 in a year no matter how you are paid you must file
  6. tonygreek

    tonygreek LawnSite Gold Member
    Messages: 3,852

    file file file file file....

    interest and penalties from the irs can reeeeeally kick you down the road.
  7. J&R

    J&R LawnSite Senior Member
    Messages: 835

    You will need to come up with 15.3 SS tax plus what ever your Fed & state income tax is.
  8. Mueller Landscape Inc

    Mueller Landscape Inc LawnSite Senior Member
    Messages: 489

    I think your boss is going to be in trouble. He is suppose to pay half that Soc Sec. tax. By 1099 he is making you out to be a sub and putting the whole burden on you.
  9. mario

    mario LawnSite Member
    Messages: 2

    thanks everyone who answered my question!! i want to do the right thing and was getting conflicting answers from friends etc. so it really helped to hear from all you say the same thing.
  10. kbremn71

    kbremn71 LawnSite Member
    Messages: 14

    First of all, Your boss should not be paying you with a personal check and sending you a 1099. By paying you this way he is saying that you are a sub-contractor as opposed to being paid off the books (which would of course mean that he was not only screwing you but the rest of us as well). From what you describe, you are not a sub-contractor. If you work on his schedule, do the work he assigns you and use his equipment then you are an employee and therefore he is legally obligated to pay 1/2 of your fed & state taxes plus unemployment and WORKERS COMP! Fortunately for you, when the IRS gets wind of this, he will bear the brunt of their bureaucratic might, not you.

    So, what should you do for now? Personally I would make him aware of his oversight so that he may correct it and you will not be not be stuck footing the bill for all of those taxes. If you don't want to go this route, remember that he is not paying you "off the books", so you should most definitely declare the income. If you do not, and the IRS cracks down on him for this, and they find that you never reported the income, you too will feel that might.

    While you may not agree with how our taxation system is set up or run, it does serve a purpose, and remember, the ease with which the IRS can ruin your life is directly proportional to the complexity the tax code!

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