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off the books, on the books

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K

kupe2000

Guest
I began working for my boss in Novemeber of 1999. He did not have me sign a W-2 or anything else when I began working. I am the only employee. After the new year he began to tell me that he would put me on payroll soon and take taxes out but he never had me sign anything and never set up a payroll system and still paid me off the books with checks that had the firm's name on top. Every week would be the same thing until about May when he started to deduct but he still did not have me sign a W-2 or anyother type of forms. It is now October and told him I am leaving his firm for a new job. He said why don't I just compensate you the money I have been withholding, give you a 1099, this way I do not have to make my quarterly payment. At first I said fine and he paid me off the books, then I spoke with an accountant who told me not to get a 1099, so I discussed it with my boss. He said he will put me down as an employee - what are my rights? How could he be paying tax on me to the government, when the IRS does not even know I work for him. Can my boss pay me off the books and then on the books and expect me to know I am getting a 1099? I don't care about not getting a refund back at tax time, I just care about not owing $7,000.00 - I live on Long Island, New York. Please advise.
 


L

lawrat

Guest
I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

Well, the problem with a 1099 is in addition to normal state and federal tax, you would owe self employment tax.

I not too wise on what would happen, but have him file a W-2 on ALL back pay. See what happens.

What did the accountant tell you to do as the alternative to 1099?
 

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