(Closed) Tax question regarding a job

posted 7 years ago in Legal
Post # 3
Member
7431 posts
Busy Beekeeper
  • Wedding: October 2009

@anonnymus: If they aren’t planning on having you sign anything, I would definitely go with option one. It sounds like they are trying to get out of paying taxes, which I don’t think they can if you are paying taxes because you have to put where the money came from

Post # 4
Member
3572 posts
Sugar bee
  • Wedding: September 2011

technically, if they are planning to pay your taxes for you, you would have to pay tax on that amount, as it is “income” to  you.

It sounds like they want you to use a 1099 and the choice is whether you save the tax money yourself, or they put it aside for you.  I would say just have them put it aside for you, because then you don’t have to worry about it. 

one thing about a 1099 – i think you have to pay your taxes quarterly, not just once a year.

Post # 6
Member
7431 posts
Busy Beekeeper
  • Wedding: October 2009

@anonnymus: That’s what it sounds like to me

Post # 7
Member
3572 posts
Sugar bee
  • Wedding: September 2011

oooh shady.  definitely sounds like they are trying to get out of taxes

Post # 10
Member
10367 posts
Sugar Beekeeper
  • Wedding: September 2010

Put it aside for yourself, and earn interest on it. Do estimated taxes. Way easier than depending on them – and you can benefit even more from it via the interest earned. Plus, I don’t like the idea of my employer holding money hostage when there isn’t any paper trail. Sounds shady.

Post # 12
Member
10367 posts
Sugar Beekeeper
  • Wedding: September 2010

@anonnymus: When I had my fellowship in grad school, I did estimated taxes because they weren’t taken out – and I wasn’t a contractor in that case. Now that i’m an employee, I still do estimated taxes on interest income from investments. Is there a tax preparer in your area you could talk to about this? They can give you the best advice.

Post # 13
Member
1269 posts
Bumble bee
  • Wedding: July 2011

Do NOT let them “hold the money for you” what if they dont have it ? You are still on the hook and its not fun having Uncle Sam after you.

Post # 15
Hostess
16213 posts
Honey Beekeeper

@anonnymus: I’m no authority on this, but my husband is a part-time employee of a school district, and part of his wage comes to him pre-tax, so he’s responsible for paying the taxes when tax filing season rolls around.

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