How would I file taxes if I was off the books for half the year and on the books for the 2nd.?

I work as a nanny and I spent 6 months getting paid by a personal check from my client/employer and so I considered myself an independent contractor. But then things changed and now I am officially an employee and am on payroll and get taxes taken out. I was told by my employer he was going to backdate to payments to when I first started working but on my pay stubs it only indicates my current earnings and deductions. So my question is how am I filing taxes. Will I be combining my income for the year and proceeding like it was all on the W2 form? Or will I be filing to separate forms? This is my first time as an independent contractor so I hope I am making sense because I am confused !

2012-10-18T10:25:58Z

He did tell me he would pay his part of the taxes even though he paid me in full because it was his responsibility to put me on the books and failed to do so. But I'm not seeing this on my current statement. When I recieve my W2 in January maybe that will have the corrected amounts? He has an accountant that handles all of this and she is the one that pushed him to get on the ball and put me on the books. He is aware that he would have needed to pay a portion of my taxes the 1st 6 months and he did tell me he would pay for whatever amounts is owed..if he does this then would I just fill out a 1040?

Anonymous2012-10-18T11:00:31Z

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He could--and many employers of nannies do this--just pay the fica/mc for you. The extra money is added to box 1 of the W-2, but simplifies things immensely. (This is spelled out in IRS publication 926 as a valid option.)

If he doesn't, then you have two choices. Rat him out or play along.

To rat him out, you file form SS-8 with the IRS asking them to make a determination for the entire period you worked for him. As a nanny, the IRS will agree. You file 1040, put the wages on line 7 and add form 8919 to pay just the employee share of fica/mc. Any unreimbursed expenses should be reported on schedule A.

To play along, you put the income on schedule C-EZ and pay both halves of fica/mc. His and yours.

Judy2012-10-18T12:54:38Z

You file one tax return for the entire amount. The independent contractor part goes on schedule C or C-ez, and schedule SE - the numbers from the bottom of those go on the same 1040 as your W-2 info

Anonymous2012-10-18T09:02:39Z

They are committing tax fraud by not reporting the pay for the first 6 months. It wasn't legal to ;ay you off the books for 6 months.

The W2 is regular wages, the other is self employment incoem, for which you will be taxed at a higher rate b/c they didn't withhold payroll taxes (SS and medicare) so you pay the whole of that as self employment tax.

tro2012-10-18T08:59:59Z

unfortunately you probably have no choice but to claim the first part on Sch C and SE if necessary, and the last part from the W-2 they will issue you
this will all be included with your 1040
there is probably no way he can correct the first part unless you refunded some money to him for the employee taxes that should have been withheld(unless he plans to pay that himself)