Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

No taxes taken out of my first paycheck?

I just started working for a real estate agency in their office doing weekend only reception work. I was paid today, but no taxes were taken out of my check, and there is a letter here that is a "contract" for employment. I used to work in HR in other companies and this worries me a little, but I cannot find any answers as to whether I am considered a contract employee but not an official employee? Will I get in trouble later for not paying taxes on this income? Isn't there some other kind of tax paperwork I need? I did not fill out an I9 or W4 or any other official HR Paperwork.

Update:

Thank you for your help! In reviewing the letter again, it says: "Your employment will be on a contract basis". It does say to ask them if I have questions, and now that I have a response that answers some of my questions here, I WILL ask them. :)

Update 2:

Additional Details: I am a weekend receptionist, I bring none of my own equipment or other materials to do the job, I am told when to arrive and when to leave, and I cannot get someone to come in and replace me that they do not know without prior arrangements. I would be totally shocked if they are trying to classify me as an independent contractor. I will just write them a letter and leave it here for Monday asking them to please arrange to have me fill out normal HR paperwork (W4, etc) and begin taking taxes out of my paycheck. I will see if they can deduct double for next paycheck to cover this one. I worked 18 hours at $10 per hour and was given a check for $180 which is Gross earnings.

Update 3:

Additional Details: I am a weekend receptionist, I bring none of my own equipment or other materials to do the job, I am told when to arrive and when to leave, and I cannot get someone to come in and replace me that they do not know without prior arrangements. I would be totally shocked if they are trying to classify me as an independent contractor. I will just write them a letter and leave it here for Monday asking them to please arrange to have me fill out normal HR paperwork (W4, etc) and begin taking taxes out of my paycheck. I will see if they can deduct double for next paycheck to cover this one. I worked 18 hours at $10 per hour and was given a check for $180 which is Gross earnings.

Update 4:

Additional Details: I am a weekend receptionist, I bring none of my own equipment or other materials to do the job, I am told when to arrive and when to leave, and I cannot get someone to come in and replace me that they do not know without prior arrangements. I would be totally shocked if they are trying to classify me as an independent contractor. I will just write them a letter and leave it here for Monday asking them to please arrange to have me fill out normal HR paperwork (W4, etc) and begin taking taxes out of my paycheck. I will see if they can deduct double for next paycheck to cover this one. I worked 18 hours at $10 per hour and was given a check for $180 which is Gross earnings.

6 Answers

Relevance
  • Bobbie
    Lv 7
    9 years ago
    Favorite Answer

    YES all income that you do receive during the tax year is required to be reported by you on your correctly completed 1040 income tax return during the tax filing season for that tax year.

    And this could be possible that they are going to try to treat you as a self employed independent contractor for this new job that you have just started at and then IF you do allow this to happen you will have to use the schedule C and the SE of the 1040 income tax return and be responsible for all of your social security and medicare tax amount plus any your income taxes at your marginal tax rate for this purpose.

    A 1099-MISC form nonemployee compensation will be issued to you and to the IRS during the 2013 tax filing season for this purpose.

    Form SS-8. If you are not certain whether you are an employee or a self-employed person, you can get a determination from the IRS by filing Form SS-8.

    Independent Contractor (Self-Employed) or Employee?

    http://www.irs.gov/Businesses/Small-Businesses-&-S...

    Misclassified Workers Can File Social Security Tax Form

    Workers who believe they have been improperly classified as independent contractors by an employer can use Form 8919, Uncollected Social Security and Medicare Tax on Wages to figure and report the employee’s share of uncollected Social Security and Medicare taxes due on their compensation. See the full article Misclassified Workers to File New Social Security Tax Form for more information.

    Good luck to you.

    Hope that you find the above enclosed information useful. 09/29/2012

  • Anonymous
    9 years ago

    FWIW, labor and tax law does not allow you to agree to being paid as a contractor when the job clearly isn't eligible.

    Yes, if you file the SS-8, they will be asked to fill out a similar questionaire and they will try to show that you agreed to this, but it's not a deciding factor. Go look at the questions. Can you decide what hours to work? Can you send a friend in if you decide to do something else that weekend? Are you bring your own computer? Are you paid by the weekend and if you finish early can you leave?

  • Judy
    Lv 7
    9 years ago

    You're right that you're an employee, not a contractor, and they're trying to cheat you by calling you a contractor when you aren't. But that doesn't mean you don't have to pay your tax on your income. You still have to pay social security, medicare, and income tax, and any state and local tax that is due - and yes, you'll be in trouble if you don't.. If you don't contest your status to the IRS using form SS-8, you'd also have to pay the employer part of ss and medicare - that's 7.65% of your income.

  • 9 years ago

    Your statement "no taxes were taken out of my check" is unclear. Were no taxes of any kind withheld or was no income tax withheld? As a receptionist, you are an employee. That is going to be a no brainer and your wages are subject to Social Security and Medicare taxes. You may not have earned enough to be subject to income tax in which case no income withholding is OK. If no Social Security or Medicare tax was withheld, your employers are screwing your over because you are not self employed. You can send IRS Form SS-8 http://www.irs.gov/pub/irs-pdf/fss8.pdf to get an official ruling on your status. If you haven't got a ruling, as an employee you can report your income on IRS Form 8919 http://www.irs.gov/pub/irs-pdf/f8919.pdf and only pay the employee half of payroll taxes.

  • How do you think about the answers? You can sign in to vote the answer.
  • 9 years ago

    It sounds like they think you are (or want you to be) self-employed, so you would have to pay your own taxes out of that pay check. IF you're self-employed, you should be asking for about 30% more income than if you were employed, to cover taxes at least. You also have to factor in any time out of work between contracts and time/expense for doing your own accounts, etc., if 30% doesn't cover it.

    If they didn't explicitly say this was a contract position, I would simply treat it as if they'd made a mistake, which you EXPECT THEM TO CORRECT. But be prepared for this to go very badly: it seems like they're trying to screw you over, so there's already very little respect there for you to work with. Especially if the amount they're currently paying pre-tax isn't enough for you to get by on, you should also line up another job ASAP, without letting them know that you're doing so.

    p.s.: sorry. Hope it works out :)

  • tro
    Lv 7
    9 years ago

    they are treating you as an independent contractor and you will take care of your own taxes

    report this income on sch C and if the net amount is $400 or more use Sch SE to calculate your self employment tax

    if you have doubts about your status go to www.irs.gov, find the form SS8, complete it and submit to IRS and they will determine your status

Still have questions? Get your answers by asking now.