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This is all new to us and do know that he needs to make quarterly estimated tax payments. No Federal, state, S.S. or Medicare is withheld. Should he see a CPA, H&R Block, etc.? It's an excavating company in IL.
This is all new to us and do know that he needs to make quarterly estimated tax payments. No Federal, state, S.S. or Medicare is withheld. Should he see a CPA, H&R Block, etc.? It's an excavating company in IL.
I seriously doubt your son can be classified as an independent contractor working for an excavating company. If he OWNS the excavating company then he would be. If he does work where and when the excavating company tells him to using that companies equipment he is an employee.
I seriously doubt your son can be classified as an independent contractor working for an excavating company. If he OWNS the excavating company then he would be. If he does work where and when the excavating company tells him to using that companies equipment he is an employee.
I thought the same thing but this place has been doing this since 1981. I don't think my son is going to rock the boat. He may realize eventually he doesn't want to work this way, who knows. Thanks!
If the employer is misclassifying your son (and probably is to evade payroll taxes) he needs to file form ss-8 and still make the payments. however, when he files his taxes he should put this should have been w2 and he filed ss8.
If the employer is misclassifying your son (and probably is to evade payroll taxes) he needs to file form ss-8 and still make the payments. however, when he files his taxes he should put this should have been w2 and he filed ss8.
Holy cow, what a mess. He needs to get a job as a regular employee LOL. He also talked about setting up a LLC? He can go see an accontant about all this, it's beyond my knoweldge.
Is the pay worth the hassle? Might be a good idea to just find another job especially if he isn't going to stay there long term. You can pull up some you tubes on how to do it but it's best to seek out a tax professional.
Holy cow, what a mess. He needs to get a job as a regular employee LOL. He also talked about setting up a LLC? He can go see an accontant about all this, it's beyond my knoweldge.
It is really not a mess. I own my own business so I am an independent contractor by definition; I pay four quarterly estimated payments (including one very large one yesterday, you're welcome Uncle Sam); and I file my taxes myself. It takes me a few hours, mostly printing and copying, not calculating. The estimated payment form comes with a worksheet for you to figure the amount to pay so you do not have a big bill or a big refund at the end of the year.
I had to pay estimated taxes as well at my last crapo job that misclassified my to evade payroll taxes. The IRS tore them a new one but it took 3 years to get a determination and by then I had moved on. It wasn't too hard. There is a calculator for the payments and the IRS has a webesite as well as the state. I filed from ss-8. When I filed my taxes at the end of the year I used Taxact or Turbotax and put in the 1099-misc, selected this should have been reported w-2, I have files ss-8 and not gotten a response.
There is a list of 21 criteria in one of the threads I linked. That will tell you if your son in misclassified.
I agree though if this is a min wage job it isn't worth the hassle.
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