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amother
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Mon, Jul 29 2024, 6:34 am
If I work for someone and they pay me half in a check and half cash and get a 1099 do I need to be concerned that they might not be filling their taxes? Will I get into trouble if they don't?
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Hashem_Yaazor
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Mon, Jul 29 2024, 6:35 am
I do not work for the IRS but I do know that you don't have to be worried about someone else's filing, you have to do the right thing for your own taxes.
Cash payments should be reported as well.
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amother
Sapphire
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Mon, Jul 29 2024, 7:29 am
What kind of "work" do you do - is it full time? Is it a "assignments" which you can finish on your own schedule?
I ask because an employer can't just classify someone as a 1099 when they are actually an employee.
You are being penalized because you are paying the employer's share of your FICA taxes which is about 7.5% - this is the amount for Medicare and Social Security.
You also are generally losing out because you have no unemployment; no benefits and often can't take advantage of family leave as these are for employees and not for independent contractors.
You would not be in trouble so long as you report all of your income including the cash
I suspect that your employer is being shady and could potentially be in trouble in terms of both the IRS and Labor Laws.
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amother
Starflower
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Mon, Jul 29 2024, 7:54 am
amother OP wrote: | If I work for someone and they pay me half in a check and half cash and get a 1099 do I need to be concerned that they might not be filling their taxes? Will I get into trouble if they don't? |
Whether they pay you in cash or check the full amount should be on your 1099.
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amother
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Mon, Jul 29 2024, 10:20 am
amother Sapphire wrote: | What kind of "work" do you do - is it full time? Is it a "assignments" which you can finish on your own schedule?
I ask because an employer can't just classify someone as a 1099 when they are actually an employee.
You are being penalized because you are paying the employer's share of your FICA taxes which is about 7.5% - this is the amount for Medicare and Social Security.
You also are generally losing out because you have no unemployment; no benefits and often can't take advantage of family leave as these are for employees and not for independent contractors.
You would not be in trouble so long as you report all of your income including the cash
I suspect that your employer is being shady and could potentially be in trouble in terms of both the IRS and Labor Laws. |
I basically a consultant. Its just the boss and me. I work remotely. I dont have set hours but answer calls when they come in. I am sort of on call when my boss has a client that day so I will pick up the phone right away if the client needs to reschedule or delayed or lost.
The check is written out from a business account and I get some cash.
I declare the full amount.
My question is, is it my business what my boss does and is it the business of my accountant what my boss does?
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amother
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Thu, Aug 01 2024, 3:44 pm
Anyone else have an answer who works for the IRS or someones husband that they could ask?
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amother
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Thu, Aug 01 2024, 3:46 pm
Accountant here.
It's not your business what your boss does. (Meaning you won't get in trouble for him not reporting things).
As long as you report all your income you are fine.
You can report more income than what he lists on your 1099.
You can also report less income than what he lists on your 1099 but you may need to be able to prove that he actually paid you less if the IRS ever questions it.
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amother
Anemone
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Thu, Aug 01 2024, 3:50 pm
amother Starflower wrote: | Whether they pay you in cash or check the full amount should be on your 1099. |
My parent works for the IRS. There is a 800 number for the IRS that you can call and ask.
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amother
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Thu, Aug 01 2024, 4:34 pm
amother Valerian wrote: | Accountant here.
It's not your business what your boss does. (Meaning you won't get in trouble for him not reporting things).
As long as you report all your income you are fine.
You can report more income than what he lists on your 1099.
You can also report less income than what he lists on your 1099 but you may need to be able to prove that he actually paid you less if the IRS ever questions it. |
My real question is do I need to care what he does with his taxes if he files or not.
My friends husband who works for the IRS wouldnt let her help me with my taxes even though her name wouldnt be on them because my boss my not be filing taxes.
I just cant make sense of it.
What do you mean that I could report more income than what he lists?
If let say the 1099 says $500 I could report more than that?
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amother
Springgreen
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Thu, Aug 01 2024, 4:45 pm
amother OP wrote: | My real question is do I need to care what he does with his taxes if he files or not.
My friends husband who works for the IRS wouldnt let her help me with my taxes even though her name wouldnt be on them because my boss my not be filing taxes.
I just cant make sense of it.
What do you mean that I could report more income than what he lists?
If let say the 1099 says $500 I could report more than that? |
If you earned more than what it says. That’s probably not why the husband didn’t let, because that makes zero sense
If he is giving you a 1099 that is different than the amount he paid you- he is probably doing something shady but it does not affect you WHATSOEVER. If you are declaring the entire amount you earned and doing everything by the books it makes no difference what he’s doing. If he gets audited it has no bearing on you at all
Does the 1099 include the check and cash amounts? Is any of it off the books? If he is giving you 1099s with full amounts there is literally no reason to assume he isn’t filing taxes properly
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amother
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Thu, Aug 01 2024, 5:31 pm
amother OP wrote: | My real question is do I need to care what he does with his taxes if he files or not. NOPE
My friends husband who works for the IRS wouldnt let her help me with my taxes even though her name wouldnt be on them because my boss my not be filing taxes. WE have no way of knowing why your friend's husband said that. Why don't you ask him?
I just cant make sense of it.
What do you mean that I could report more income than what he lists? IF you earned $1000 but your 1099 lists $500 you can list $1000 income on your tax return.
If let say the 1099 says $500 I could report more than that? YUP |
On mobile so I can't format normally but I answered your questions in the quote section above.
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Hashem_Yaazor
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Thu, Aug 01 2024, 5:41 pm
I'm wondering if it's a frum thing, like it might be he's concerned about being a "moseir" for potentially red flagging the boss as under reporting on the 1099. But on a practical level, everyone is telling you the same thing: you report what you make, period. You don't need an IRS employee to tell you that.
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nicole81
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Thu, Aug 01 2024, 11:19 pm
Hashem_Yaazor wrote: | I'm wondering if it's a frum thing, like it might be he's concerned about being a "moseir" for potentially red flagging the boss as under reporting on the 1099. But on a practical level, everyone is telling you the same thing: you report what you make, period. You don't need an IRS employee to tell you that. |
Good thought. Because I can't make heads or tails of it otherwise.
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