Accounting, Payroll & Pension Issues/1099

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Expert: - 4/18/2011


Question
I am paralegal and I work for a small firm. Its me a legal secretary and my boss. He claims that he is paying too much in taxes on our salary. I only make $30,000 a year and my co-worker makes $29,000 a year. He wants to start pay us what we would make on the 1st and the 15th and have us pay our own taxes. Can he do that in the middle of the year. And how do we benefit from him not paying our taxes.

Answer
First of all he cannot do this it is illegal. Second of all you benefit nothing as in that type of arrangement (which is not legal) you would be considered an independent contractor (running your own business) and would have to pay both your part of the payroll taxes and his part.

This is not legal in this situation. I would contact the Department of Labor and report an FLSA violation and ask them to speak to him about it.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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