Tax Law (Questions About Taxes)/taxes
Hello I am worried about my financial state right now. I work for this company and we have been doing payroll normal for a long time all of a sudden now on these next two pay periods they are doing like a cash check for us because they are trying to cut expensises down and not have to pay the payroll taxes in july. what should I do because we will probably get a 1099 at the end of the year and I don't want to be stuck paying taxes that were suppose to come out and didn't. should I deduct my self and pay I just don't know what to do help please
If you receive W2 and 1099-MISC from the same company, you should file form 8919 asking to treat your income reported on 1099-MISC as income of employee.
When you receive determination from the IRS, you may treat the 1099 income as wages.
Then you will be only responsible for 1/2 of Social Security/Medicare tax on that portion of your income. If the amount due is below $1000 you do not have to make estimated payments.
However, this step is risky as it will deteriorate your relationship with the employer. So, be cautious before you make the decision to file that form.
Hope this helps,