Tax question - 1099

[CumminsPower98]

Luckily I won't be doing this for long. Yes this guy is a greedy one, there is no doubt about that to either one of us. We are working by the hour with no contract beforehand and paid with company checks although we have been paid in cash a few times. We are paid pretty much when we ask. I have been going mostly on two week intervals but there is nothing set. It also depends on if he even has any money at the time. He keeps himself pretty tapped out all the time because he can't seem to pass up a deal. He has been running his business this way for about 6 years probably and not had any problems that I know of but that certainly doesn't mean its right and I agree its a screwed up deal. We are both living on the guy's house property in our 5th wheels and paying a low monthly mainly to cover power so that helps. I just deduct my monthly from what is owed to me so that won't be reported, this way I won't have to bother with that detail. I mainly agreed to this to give my cousin some good help more than anything else because the other guy that was here helping was pretty clueless and not good help at all.

 

[HBarlow]

CumminsPower



I understand a man has got to do what it takes to earn a living in order to continue the habit of eating and sometimes he'd rather not be doing what he's doing or for who he's doing it for so I'll just drop it and move on after this.



This guy is cheating you and your cousin. You are working but not earning credit for your honest labor with the Social Security Administration unless you file as a contractor, which you clearly are not. If you file as legally obligated you'll have to pay the SSA 15% of your earnings..... that's at least 7. 5% of gross earnings the employer is required to contribute and 7. 5% of gross for the employee share. It may have been increased. Then, legally you will have to file quarterly withholding payments with IRS. If this guy reports the wages he has paid you and your cousin and deducts it from his net income you'll shortly be receiving a letter from IRS.



I don't know how much you are earning and am not asking, it's not my business, but if you sit down and calculate you'd probably be just as well off working at Wal-Mart where your SS would be paid and you can earn benefits.



BTW, the tax code and IRS require you to pay income tax on the imputed value of RV parking and any other payments in kind as part of your income.