Thursday, July 29, 2010

Thanks for the advice. i am an office assistant for a small company and my boss pays me by check but doesn't ?

take taxes out. he files a 1099 with his accountant on his end and now i have to file a 1099 for myself. i don't have any expenses or anything else to report. just a 1099. if i qualify for EIC and owe the state money, will that money be automatically deducted?Thanks for the advice. i am an office assistant for a small company and my boss pays me by check but doesn't ?
Even if you agreed to be an independent contractor and be paid on a 1099 basis rather than be treated as an employee and paid on a W-2 basis the determination of your status isn't up to you or your boss -- it is up to the IRS.





If you were paid more than $600 during the course of the year you should receive either a 1099 (if you are a contractor) or a W-2 (if you are an employee). If you are a contractor you should have filed quarterly estimates and paid the amount due each quarter (this probably applies to state as well as federal taxes). In addition if a contractor you should have paid both the employer's and employee's share of Social Security and Medicare taxes.





Please contact your local IRS office. Based on your job title I suspect the IRS will say you are an employee and it is the responsibility of your employer to withhold federal and state income taxes and to pay the employer's share of Social Security and Medicare taxes.





Hope this helps


Jerry-the-bookkeeperThanks for the advice. i am an office assistant for a small company and my boss pays me by check but doesn't ?
IF you did not sign or verbally agree to become an independent contractor


your boss is violating the law.





GET to the library and study independent contractor vs


employees.





Also, quietly call the IRS and ask them to audit your boss' company.


do not volunteer who you are.
Yes, if you owe the state money they will take it out of the EIC.





Also, if you get paid as an independent contractor, you can keep track of your vehicle miles driven to the job site, and write it off as an expense.
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