Independant contractors that make less than $3000/year, must we pay taxes?
445375
Ugh, you need to file your taxes if you make more than $400 as an IC and I believe $700 as an employee. Not everyone has to file taxes.\n\nDON'T listen to ALMOST ALIVE. The IRS's site and other documents clearly state that independent contractors have to file if they make OVER $400. I'm sure he'll get caught soon. ALMOST ALIVE, aside from the taxes that you owe, just imagine how much in penalties you will have to pay-up to 25%. And, the IRS calculates interest on a daily compounded basis at a minimum of 7%. They have up to 10 years to collect for each tax year.
843675
Not enough info- are you a private contractor? or are you actually an employee?  The difference being did you fill out a W4 form for income tax and do you have benefits? or did he hire you as an "at will" private contractor, which means you would get X amount of money for X amount of work and you would be paying your own taxes.  If you are a true employee, you should be paid at least 2x a month-you can check online under Wisconsin state offices.  If you are an independent contractor- it would be up to you and him as to when you would be paid-- most likely when your job is complete.
217013
If you don't even know if you'll need a footer, I'd recommend passing this one up. You're looking at a lot of liability, not to mention possibly running afoul of contractor laws if you're unlicensed to perform the work.
393925
You will possibly be liable for any taxes that you are responsible for.If this guy is a big enough tax evader, you can get a percentage of everything he owes, sometimes 20%.This could MORE than cover any taxes you owe.The IRS prints out Publication 15 Circular E, that defines exactly what a contractor is, what an employee is, and how much tax is to be withheld. Yes, I would report him. Talk to a lawyer or someone affiliated w/ legal aid at a law school, if you don't have the money to hire a lawyer.Oh, and have a new job ready.
25889
IRS Designation 1099 in lieu of W2/W4. Contractor status.\nAll taxes are responsibility of your sub contractor.\nI do 1099 work often.\nTo be fair let your worker no of all the rules.
173236
File an Installment Agreement (Form 9465) with the IRS.  As long as you're trying to hold up your end, they will work with you.  If you don't do anything, they can squeeze you like a turnip.
910908
Generally, yes there are penalties.\n\nHowever, the IRS provides for a safe harbor in that if you pay in through withholding and estimated tax payments the smaller of the following:\n\n1.) 100% of your 2005 taxes (110% if your AGI is above $150K this year), or\n\n2.) 90% of your estimated 2006 taxes;\n\nyou are deemed safe from underpayment penalties, provided the estimates are made timely.  You would then pay anything due at the end of the year.\n\nWhile it may seem that you can just make this payment for the 4th quarter, which is due Jan. 15, 2007, the problem you may have is that you should have been making payments since April 15, 2006, so unless the amounts are very small, I believe that you will be subject to penalties based on what you have described.\n\nI would recommend that you make this 4th Q E/S to minimize the penalties.
366906
It's true.  If a guy who doesn't pay taxes is taking that job he can typically work for less money and have a comfortable living.
796981
Obviously, I don't know all the details, but the IRS will usually levy wages only after they have been ignored for a long time.  Your friend needs to come up with a payment plan, either a proposed installment payment plan (form 433D, I think) or a partial pay offer in compromise (form 656), along with a financial statement on form 433A.  The forms are on the IRS web site http://www.irs.gov.  Good luck.
488346
In 2006, the single person standard deduction is $5150, so he will not pay "income tax" on income up to that point.  However, he will have to pay "self employment" tax on that income as a self employed individual if it's more than $400. (15.3% of self employment income)  This is for FICA and Medicare.  He will likely get a 1099 from his employer for the total amount they pay him.  He can however, deduct any business expenses he had pertaining to this job to lower this figure on Schedule C.  So I would keep track of any expenses he had to pay out of pocket for this job, like mileage, any special tools or equipment purchased, etc.  Talk to a tax accountant and explain his situation for better advice.
278060
YES. It is called an offer of compromise. They will set up payments with you. If you do that you need to make sure you pay the set amount on time!!! Call the IRS at 1800 829 1040
502754
First, it depends on which state you live in.\n\nThere are a variety of taxes that phone (and other utilities) like to pass down, especially excise taxes.  I would plan to pay anywhere from 10% to 15% in taxes.
93707
Yes, you have to file if you made more than $400 in self employment.  If you were paid on a 1099 as an independent contractor that would be considered self employment.  You have to pay self employment tax, which is social security and medicare, on your 1099 income.  File a 1040, and a schedule C for the 1099 income.  Self employment tax goes on Schedule SE.  Deduct the studnet loan interest on the 1040, line 33.
458167
There are two main forms contractors work for. W2 and 1099. If you work W2 then the employer is liable for employment taxes, Which includes matching Social security as well as unemployment and a host of other taxes. W2 workers have to have federal and state taxes deducted from them. W2 workers also get benifits like insurance. \n\n1099 Vendors are paid a flat rate and handle their own taxes. It may be an individual or a collective group of individuals. Nothing is deducted as the vendor will handle taxes, provide benifits and otherwise deal with Gov red tape.
728006
In regard to HR, you can argue it either way.  You don't have employees, but you do require certain skills from your contractors and you do pay them and prepare related tax documentation.  Skill asessment, payroll, and tax documentation are all functions that fall under broadly defined HR (which includes payroll and benefits administration)...\n\nAs to the right way to go about recruiting/hiring contractors, you need to make sure you are hiring people with the right skills and are not overpaying for the skill level...
752300
I would suggest setting up a flat rate for each service within a certain mileage limit of your home. If you make more than $400 in a "hobby" then you must file Schedule C- Business profit or loss. If you run this like a business, you are eligible to deduct milage regardless of what you charge your clients. \n\nHourly rates of $15-30 are not unreasonable because if these affluent people's time is spent making the big money, they wouldn't second guess your prices.
46551
If you had set hours, set tasks, and used his tools you probably aren't a independent contractor.  Are you sure this guy is a lawyer?  Look up his name on your local state bar website.  If he says he's a lawyer and he isn't, he's breaking the law.  A labor lawyer would have told you up front that you are considered an independent contractor because your situation is not uncommon.   Of course you have to pay taxes; the self-employment tax rate is 12.4% (up to a limit) for Social Security, and a 2.9% Medicare tax on all IC income.  There are some set guidelines on what makes an independent contractor.  Disputes usually occur when an employer wants to pay a worker under the table to avoid taxes. \nMy advice, seek out a pro-bono attorney.  There are law clinics for people who don't have a lot of money, or need assistance because they are new to the country.  Call you state and local bar association for information.  Check out the website Findlaw to read some basics on employment law.  Don’t fear the government if you owe back taxes.  Even if you were an independent contractor and failed to pay taxes on time the government will allow you to set up a payment plan.  One more thing, document everything - every discussion, phone call, message you have with your old employer.  You will need this information.\nGood luck!