AboutHelen P. O`Planick, EA Expertise I am a tax professional, with experience in individual taxation. I would prefer not to answer questions about non-resident aliens or corporate taxation. Please do not ask me state related questions, unless the state is Pennsylvania. There are 42 taxing states and 42 TOTALLY different sets of state tax law.
Experience I have been preparing tax returns almost all my life. I have been in professional practice for 25 years and I am enrolled to practice before the Internal Revenue Service.
Organizations National Association of Enrolled Agents
Publications I am a prior Money Magazine Tax Test taker and have been quoted extensively in all media including monthly periodicals and books by tax authorities.
Question My husband has been employed full time by a company 5 years, recently company changed names,requested he is paid now by check and has to file a 1099 to pay taxes. we were under the impression that the owner lost or closed company, yet he still gets paid under the old compnay name. He punches a time card and works very irregular hours now. Is this going to hurt us tax wise, his employer said he could register a company name and file taxes differently. we are in desparate need of advice.
Answer Your husband has been classified incorrectly and he will not only owe income tax, he will owe 15.3% of his income for social security taxes. So figure maybe 30-40% of his income going to taxes.
The employer is not paying workers comp, unemployment or his share of payroll taxes. So your husband is not covered under workers comp or unemployment.
You may wish to contact your state unemployment board (or tell the boss you are going to) and let them make a proper determination.
If you would like a referral to a local tax pro, reply with your city and state and I'll see if I know someone.
