ninasgramma
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Sorry, no W-4 for you. You will not be an employee.
"Under the table" means that the person paying you will not report the income to the IRS. They are lying. You can rest assured they will report all payments to you since they can take a deduction.
If you are paid more than $600 as an independent contractor, the payor is required to give you a 1099MISC showing the payments.
I urge you to keep track of all payments you have received. It is common for crooked contractors to issue 1099MISC showing more payments than were made. You get stuck paying taxes on money you never received, the payor gets an inflated tax deduction.
When you get your 1099MISC, make sure the payments are not more than you were actually paid. Get a corrected 1099MISC if you can.
You will need to fill out Schedule C. You will be allowed to take deductions off your gross income, and be taxed only on the net income. You wil also be paying 15.3% of your net income to Social Security and Medicare.
My advice: find an honest employer or contractor. |
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Judy1
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Paying you under the table means that they won't take out taxes and won't report your income to the IRS. That's illegal both for you and for your employer. |
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nightserf
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It means to pay you wages that are not reported to the IRS or the SSA. It is a form of tax evasion, and it is illegal. |
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Shelley
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The phrase "under the table" usually refers to a cash payment in order to avoid tax reporting, by both employer and employee...And yes, it is quite illegal. |
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mikie
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If your being paid under the table it means you either get cash or check with out the IRS knowing about it. Your employer also avoids the IRS. |
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Dan
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Working "under the table" means without IRS payroll tax reporting. If you are an employee, the biggest reason you don't want to work "under the table" is you won't have workers comp. If you get hurt on the job, you are screwed.
If you are an independent contractor, then they are refering to the 1099 -MISC rules which state that they won't be giving you a 1099-MISC until you reach $600. You still have to report what you make regardless of whether they give you a 1099 or not. |
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Carl_the_Truth
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I'm guessing you need to find another employer. The W4 should be filled out BEFORE you even start working. What they're doing is against the law in all 50m states. And both you and they can get into trouble for it. |
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angel72296
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Trust me when I advise you to run like hell and find a job that will pay you legally and above board! |
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feldwebel
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It means they won't withhold any taxes. After you have made $600 they will have to file....and so will you! |
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Lennox BE
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Ya technically its illegal, but its the best way to get paid. This is why jobs such as babysitting and nannies etc... don't have to pay taxes because it shows up as them not making any money because they get paid straight up cash. |
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EPIC
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Don't listen to these people. The reason that they said $600 is you can pay up to that amount without having to W9 people. If you are a 1099 employee then this is most likely the case. They might just mean that they are not going to require a W9 to pay you the first $600. Don't listen to these other people that obviously don't understand this. |
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