Employer failure to withhold FICA

[larryshoat]

If you take the money that would have been with held for taxes, SS, etc. and invested it in a mutual fund you would do better at retirement then what you would get from SS. Seems that people have lost the ability to save uless it's crammed down their throats by the government

The federal government is the biggest employer in America 27% now add on the state governments and the county governments and the city governmets workers and you begin to see that the problem is people working in goverment and the rest of us trying to support them.

Add to that the people that don't work at all, and people that are retired drawing a pension for more years than they worked . Before anybody attacks me on the retired thing, I realize that was the deal that they entered into when they worked, and I think it's wonderful that people are living longer, but it's a financial drain . Eventually these companies are going to find a way to slip out of these pension deals or they won't make it . Caring for an aging population will be a big issue in the not too distant future .

Larry

 

[dun]

Back to the mutual funds some will make you money and some will break you I have been there and done that. I do much better picking my own stocks.

In the long run we've done well with mutual funds. Tried the buying and owning my own stock deal, I don;t have the proper disposition/personality to do it. When the stocks went up I was happy when they dropped I was ready to kill someone. Spent every chance I got watching the stock market, finally sold the stocks as soon as we could break even from the commisions. It was as if an elephant had been removed from my shoulders when we got rid of the last ones.

 

[Brute 23]

Take your money and be smart with it.....

OR give it to the government and vote Obama. Since he, and the rest of the democrats are smarter than every one else, they and the government will take care of us all. :lol2: :lol2: :lol2: :lol2: :lol2:

 

[TexasBred]

He pays in cash, to the tune of around $1600/month. It's pathetic what someone in my tax bracket gets nailed with, I know that from past employers. Don't get me started on that.

Seems he's putting all the burden on you....do you report it or not ?? If you don't then he's done nothing wrong but you are failing to report income and could be treated as a criminal.......If you do report him then you'll look like a real "ass" to him and everybody else plus probably lose the job and the things Novatech mentioned could happen to him as well. I wonder how he comes up with that much cash?? Guess he sells a lot of stuff for cash and doesn't report that either. People like this need to be audited occasionally. One thing I've always been told is take every deduction you can think of. That's not a crime and can only be disallowed. DO NOT fail to report income. That is income tax evasion and can ruin your life. If I were you I'd be looking for a new job regardless.

 

[born2run]

He cashes some of his milk check My brother is an accountant and does my taxes. He flatly refuses to do them for 08 unless I report this income.

 

[KenB]

He cashes some of his milk check My brother is an accountant and does my taxes. He flatly refuses to do them for 08 unless I report this income.

I would think that Your Brother would be the best one to answer your questions about this. :wave:

 

[Brute 23]

At worst your looking at $2880 in taxes. With milage deductions (up to like .58/mi I think), and all your other write offs it will be less. Keep up with any thing you buy that is remotely related to your job.

 

[TexasBred]

He cashes some of his milk check My brother is an accountant and does my taxes. He flatly refuses to do them for 08 unless I report this income.

I would think that Your Brother would be the best one to answer your questions about this. :wave:

Your brother is smart. To do so would make him liable as well now that he knows about it.

 

[born2run]

I've been thinking long and hard about this, and I'll start withholding on my own the next time he pays me. Given my current debt load I'll probably be able to take out $200/month until the dreaded day in April. Still, this won't come out to be enough. Can I make payments to the IRS? :cry2:
BTW, how many of you have deliberately made a typo when paying them? Seems I did that about 8 years ago when I had an employer that just took out SS and Medicare. Wrote the check to Infernal Revenue Service. It cleared. :lol:

 

[TexasBred]

I've been thinking long and hard about this, and I'll start withholding on my own the next time he pays me. Given my current debt load I'll probably be able to take out $200/month until the dreaded day in April. Still, this won't come out to be enough. Can I make payments to the IRS? :cry2:
BTW, how many of you have deliberately made a typo when paying them? Seems I did that about 8 years ago when I had an employer that just took out SS and Medicare. Wrote the check to Infernal Revenue Service. It cleared. :lol:

:lol: :lol: Sounds like you wrote what you were thinking. :clap:

 

[Brute 23]

I like that... might try it this year. :lol: Thanks

 

[KenB]

I've been thinking long and hard about this, and I'll start withholding on my own the next time he pays me. Given my current debt load I'll probably be able to take out $200/month until the dreaded day in April. Still, this won't come out to be enough. Can I make payments to the IRS? :cry2:

It seems to me that you would be a self employed contractor. You should be able to come up with enough deductions to not have any or very little tax liability. But you should file and also pay your self employed social security payment, it will help you in the future. As I said before your CPA Brother should be well qualified to advise you on this. :nod:

 

[novatech]

I've been thinking long and hard about this, and I'll start withholding on my own the next time he pays me. Given my current debt load I'll probably be able to take out $200/month until the dreaded day in April. Still, this won't come out to be enough. Can I make payments to the IRS? :cry2:

It seems to me that you would be a self employed contractor. You should be able to come up with enough deductions to not have any or very little tax liability. But you should file and also pay your self employed social security payment, it will help you in the future. As I said before your CPA Brother should be well qualified to advise you on this. :nod:

Your CPA brother does not want to deal with this as he could loose his license or get the farmer into real trouble. Either way he views this as a bad situation for him as a professional to deal with.

 

[KenB]

It seems to me that you would be a self employed contractor. You should be able to come up with enough deductions to not have any or very little tax liability. But you should file and also pay your self employed social security payment, it will help you in the future. As I said before your CPA Brother should be well qualified to advise you on this. :nod
Your CPA brother does not want to deal with this as he could loose his license or get the farmer into real trouble. Either way he views this as a bad situation for him as a professional to deal with.[/quote]

novatech, this is what his CPA brother said about this,
by born2run on Mon Aug 25, 2008 6:47 pm
He cashes some of his milk check My brother is an accountant and does my taxes. He flatly refuses to do them for 08 unless I report this income.

:? I advised him to file his taxes.[/quote]

 

[dun]

Rather then trying to change the way he does business, why not just quit. That would solve both his and your problems.

 

[novatech]

Rather then trying to change the way he does business, why not just quit. That would solve both his and your problems.

Dun you are right on. When born2run took the job he new how he would be paid. He had the option of working under that pay arrangement or not. Now at the tail end if things when it is time to pay up he says oh my God what am I going to do? Well lets just blame it all on the employer. Sorry but in my book it took 2 people to make this arrangement and both parties should be equally responsible.

 

[Alice]

Born2run,

Get you one of those do it yourself tax programs, like Turbo Tax. Get one that offers the program about self employment. Pop that into the computer and follow the prompts. You may discover that things aren't as bleak as you fear. Now, if you do this and decide to pay your taxes on the income you receive, you will have to report who paid you, which will throw up a red flag against your employer. I think too, and I may be mistaken, as a self employed person, you are supposed to pay an estimated amount quarterly, or something like that, which you could earn you penalties if you haven't been doing that.

Remember, you can always file for an extension, and when you do that you are supposed to pay in an estimated income tax amount. You'll be penalized if you do not do that, but right now it might not be so bad the take the penalty until you can figure this mess out. But for certain, I would surely file for an extension.

Alice

 

[1982vett]

Rather then trying to change the way he does business, why not just quit. That would solve both his and your problems.

Dun you are right on. When born2run took the job he new how he would be paid. He had the option of working under that pay arrangement or not. Now at the tail end if things when it is time to pay up he says oh my God what am I going to do? Well lets just blame it all on the employer. Sorry but in my book it took 2 people to make this arrangement and both parties should be equally responsible.

Labor laws still come into play reguardless of any mutual agreements.

Exerpt from http://www.dol.gov/esa/whd/regs/compliance/whdfs12.pdf


....Typical Problems

Not keeping/maintaining records of the names and permanent addresses of temporary agricultural employees, dates of birth of minors under age 19, or hours worked by employees being paid on a piece rate basis.
Failing to pay overtime to employees whose jobs are related to agriculture but which do not meet the definition of agriculture contained in the Act.

Agricultural employers who utilize the services of a farm labor contractor are almost always in a situation of joint employment with the contractor in regard to the employees. Joint employment means that both the contractor and the farmer are responsible for complying with the minimum wage, overtime, recordkeeping, and youth employment provisions of the law. If either party fails to comply with the law both parties may be held liable. ....

The question of born2run being correctly classified as contract labor or is acutally an employee has not been clearly established (unless I missed it). The fact that payment is in cash raises suspicion with me.

I'm with Alice on this one. Do what you need to do for yourself and let the chips fall where they may.

 

[GMN]

I'm curious how did this turn out for you?

GMN