Tax Question.

Discussion in 'Business & Economics' started by 420Joey, Oct 11, 2006.

  1. 420Joey SF's Incontestable Pimp Valued Senior Member

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    1,189
    I've been working in a communications company for awhile now and I havent been paying taxes. We just get our checks, I'm just wondering, in the end of the year that money has to be claimed right?? Am I going to have to end up paying the goverment taxes?? My manager told me that he has somebody good with numbers or whatever and that it's straight but I'm still skeptikal. Is it illegeal?? Is there a good source for information on taxes?
     
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  3. lixluke Refined Reinvention Valued Senior Member

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    They take the taxes out of your check.
     
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  5. 420Joey SF's Incontestable Pimp Valued Senior Member

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    He gives us a personal check but they have to claim right??? I earn like 400 a week..... and im 18 I dont know anything about taxes and the sort.
     
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  7. Nickelodeon Banned Banned

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    Don't you guys get payslips telling you what taxes you have paid?
     
  8. 420Joey SF's Incontestable Pimp Valued Senior Member

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    No, no. In my job I dont pay taxes. It's a personal check. No taxes are taken off.
     
  9. vslayer Registered Senior Member

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    then call the IRD, tell them your situation, ho much youve been payed, and theyll tell you how much you owe.
     
  10. lixluke Refined Reinvention Valued Senior Member

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    You are supposed to get payslips with your check showing taxes paid. Call IRS, and report your boss.
     
  11. lixluke Refined Reinvention Valued Senior Member

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    Do like Vslayer says. Call the IRS. Your boss is crooked.
     
  12. Nickelodeon Banned Banned

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    10,581
    Yeah I was just thinking that, if he told the IRD, his Boss will not be pleased.,,
     
  13. lixluke Refined Reinvention Valued Senior Member

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    It's not IRD. It's IRS.
     
  14. Nickelodeon Banned Banned

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    Uh-oh, then why have I been paying some organisation called the IRD????? Who are they? Shit!

    Yeah IRS Sorry.
     
  15. spidergoat pubic diorama Valued Senior Member

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    Don't call the IRS, you are being paying "under the table". Consider yourself lucky.
     
  16. tablariddim forexU2 Valued Senior Member

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    You can declare yourself self-employed freelance communications thingamijig... possibly?

    It's best to ask your boss just how exactly he intends to deal with your tax situation. Do you fill in your own tax form at the end of the year?

    Unless you are declared as self employed for tax reasons and in which case you might need to employ an accountant, then your boss is legally bound to pay your tax and any other contributions to the government by taking it out of your weekly wage and he must provide you with a wage slip showing your gross earnings, the taxes he withheld and the net amount received.

    It could be that your boss hasn't even declared you as an employee and you could end up in trouble with the IRS if you're not wise to these scams and tell them the wrong things when they ask.
     
  17. lixluke Refined Reinvention Valued Senior Member

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    9,072
    Yes. "Under the Table" the only way I get paid. I was going to ask about it, but please give us the following information:

    1. Exactly how many hours to the minute did you work?
    2. What is your pay rate?
    3. What is the exact amount of your paycheck?

    IMPORTANT: The most important thing you can do is keep personal record of how many hours you work. Don't leave it up to their clock alone. If you keep a personal record, you can check for discrepancies, and confront your employer whenver they come up.
     
    Last edited: Oct 13, 2006
  18. Quigly ......................... ..... Registered Senior Member

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    If you get a 1099 at the end of the year, then you are responsible for taxes. If paid under the table...you are still responsible for taxes if you are paid more than a certain amount per year and I believe with what you are making that you would fall into the category of having to owe taxes. I would hang onto around 15% to 20% just in case you get stuck at the end.
     
  19. Absane Rocket Surgeon Valued Senior Member

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    You need to find out. The work I do now I do not pay taxes because I am given a personal check. However, I am in favor of the FairTax so things like this do not happen.
     
  20. Fraggle Rocker Staff Member

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    24,690
    You are apparently what the IRS calls "self-employed." You are not this guy's employee. You are an independent entrepreneur who does work for people and charges them for it, like a plumber, landscape architect, yoga instructor, psychiatrist, etc. This is becoming very common in the USA because the employment laws are so complicated and--in many states--so employer-hostile, that it's easier and cheaper for companies to treat workers as independent contractors instead of employees.

    That said, he's still not doing it right. You should have signed a contract with each other and he should be giving you a little statement (usually a stub) with every paycheck showing how much he's paid you this time and the total for the year. Then at the end of the year he sends you a summary for the year showing your annual income and also sends a copy to the I.R.S. He gets to deduct what he paid you as a business expense, which reduces his taxes; and you have to claim it as income, which increases your taxes.

    The fact that he is not doing something which would benefit him suggests that he is hiding his business from the government so he won't have to pay any taxes at all. This is very common, lots of people who are otherwise totally respectable do it, especially if this is not their primary source of income so nobody's going to wonder how a man with zero income can afford to pay for food, rent, and gasoline. Many people (quite reasonably) believe that the federal income tax is an unconstitutional law and that the Supreme Court are a bunch of wussies for not nullifying it, and they quietly protest it by cheating. Other people simply cheat to save money, even though in their own political model they actually believe that they are stealing.

    What you have to do next April is file a tax return. You need to keep track of all the money you're earning so you can list it on the return. The advantage of being self-employed is that you can deduct your business-related expenses. That includes something like 41 cents a mile for the use of your car.

    You will probably have to pay an accountant a hundred dollars or so to prepare your tax return correctly since you don't have a lot of knowledge about it. And you will have to pay something to the government. Quigley's estimate is too cautious, he must be an accountant giving conservative advice to his client.

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    If your total income for the year is $20,000, you can't possibly owe more than about $2,500 in federal income tax, and probably considerably less. Depending on which state you live in you may owe something in state tax too, but in most states it won't even be a fourth of your federal bill.

    Next year the I.R.S may require you to file an estimated tax statement every three months and pay one fourth of your estimated taxes in advance, since your "employer" is not withholding them. However, $2,500 is a pretty small amount to owe by their standards so they may not bother with it. But even if they don't you should start keeping good records. Get in the habit now and when you're 30 you won't be one of those people desperately lining up at H&R Block on April 14 with a shoebox full of bank statements.
     
  21. spidergoat pubic diorama Valued Senior Member

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    You guys are nuts, if the IRS doesn't know about 420's income through his "employer", or through himself, all the better. Nothing gets deducted, and he doesn't pay anything out. It's illegal, but you know, that's just more :m: for him! F the IRS! Then he's not supporting Bush's illegal wars.
     
  22. Fraggle Rocker Staff Member

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    24,690
    There are certain illegal activities that it is very unwise to advocate in public.
     
  23. vslayer Registered Senior Member

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    4,969
    inland revenue department. i guess you just have a different name for it over there.
     

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