Question

Paychecks with no taxes taken out?

My husband worked for a company for 6 weeks and was paid with a company check, but no taxes were taken out. My husband quit for that reason because their verbal agreement was he would be on payroll. So, he was paid 6 weeks totaling $3150.00. I know we are suppose to file this, but I thought it wouldn't be until next April. I was told no, he would have to file every quarter (which makes sense). My questions is, when do we have to do this by, what forms do we need to fill out and does anyone have a rough idea what amount will be owed? We're in Texas if that helps. Any advice would be appreciated.....we don't want the IRS thinking we don't want to pay. Thanks.
I'm only guessing he would have to file the 6 weeks of pay next quarter. I'm assuming he'll probably receive a 1099, but he filled out a W2 before employment began. It's obvious his ex-employer is a scumbag, which is why he quit. I just need to know what we need to do on our end so we don't have problems. I could care less about the employer.....knowing how he conducts business, you could say he has it coming to him.
Thanks for your replies. My husband was not hired as a contractor, he was hired as a full-time employee. He worked 5 days/40 hours per week and punched in and out everyday.

6 years ago - 20 answers

Best Answer

Chosen by Asker

You don't file your taxes every quarter, you make estimated tax payments every quarter. If you don't make estimated payments and you owe more than $1,000 at the end of the year, you probably will get charged late payment penalties. You only have to make one estimated payment to cover the $3,150 payment.

You should go to the IRS website and look at the following publications. Your husband will report those earnings on the Schedule C and he will end up owing 15.3% self-employment tax as well as the regular income tax. He might want to take a look at what expenses he could deduct from the payment, so the the "net income" is reduced.

The instructions for Schedule C on the 1040 form
Publication 505 Tax Withholding and Estimate Tax
Publication 583 Starting a Business and Keeping Records
Publication 587 Business Use of your Home

6 years ago

Other Answers

The IRS will be knocking on your door soon. Don't answer...RUN!

by Y!A Terminator - 6 years ago

I would visit IRS.gov. Since Texas doesn't have a state income tax, you only need to worry about federal, but as to the process of how you pay your taxes, I'm not sure.

by ALFimzadi - 6 years ago

ya so.....u can decide if u want the tax taken out or not from ur chec

by Mike - 6 years ago

I think that is against the law for a company to do that.
Id call the IRS or go to irs.gov....
I think there might be a reward if you turn that company in.
Im also pretty sure you can do so annonymously.

by justaguyfromthewindycity - 6 years ago

Normally the company should send him a W-9 form if he was paid but no taxes were taken out.

by mommyme - 6 years ago

listen to the terminator

by doug - 6 years ago

Since you are straight with the IRS I would suggest you call them. They are very nice to people like you.

by Les B - 6 years ago

Your husband should receive a form 1099 from the company that paid him. This will have to be listed on your IRS return next year. No, he does not have to file quarterly. Technically he was an independent contractor.

by prwagner3 - 6 years ago

why do you have to file each quarter? you husband was hired to be a payrolled employee, he is not a business they hired as a contractor.

take half of that money and stick it in a money market account and claim the check as income when you get your taxes done.

by Heisenberg - 6 years ago

Call the local IRS office and they can help you. It isn't just that they didn't take taxes out of his check; they may also have not paid their employer share as well. I quit a job for the same reason. The IRS actually went after my former employer as well since they were doing a lot more than just not filing employee taxes.

by TotalRecipeHound - 6 years ago

i was a 1099 emplyee (basically a contractor) for a while couple years ago and was paid without tax deductions and I didn't have to file every quarter, only in april and i had no problems (and it was more money).

Source(s)

by Branch Bacardi - 6 years ago

If you look in a phone book or online in the yellow pages look up "tax services" there should be plenty of agencies that can help you get the forms that you need, or tell you how to get them.

Also, you could just call the IRS and tell them that you need quarterly filing forms, or ask how to get them. And depending on when he quit, you may not have missed the cut off for his quarter.

by Shy one - 6 years ago

Tax Form 1099 check with accountant on what % is for State/Fed.

by Laurie B - 6 years ago

You only file income taxes once per year. The amount taken is roughly equal to 20 to 25%.

by Granny - 6 years ago

Well my sister did her own daycare, and she paid her taxes at the end of the year when she filed. And her taxes were 27-30 percent of what she made. I am comfortable telling you that you would not have to report this earn income until the end of the year, when you do your income taxes.

by jessica g - 6 years ago

You actually do not owe until april 15 of next year when you file your income tax. You do not have to pay now. Paying quarterly is an option so you don't get hit with it all at once. As for figuring it out you need to go to IRS.gov and find out what percent of taxes you usually pay. My husband pays about $70 every week for a $500 check. so I would save about $500 for it.

Source(s)

by blahblahblahblahblah - 6 years ago

If no taxes were deducted from his paycheck, then he is a 1099 status...that is, he was considered a contractor. Contractors are supposed to pay "estimated" federal and state taxes every quarter as long as he was collecting a paycheck from this company. I got my accountant to figure out my estimated taxes and he printed out a bunch of payment stubs for me to pay off every 4 months....April 15th, June 15th, September 15th, January15th. If your husband is back to a regular W2 job, he won't have to make additional Estimated Tax payments anymore...just up until the quarter that he was being paid for. So if his 6 weeks pay crossed any of the quarters, he'd have to pay estimated tax for both quarters. It's better to over-estimate and then get some money back at the end of the year than to under-estimate because then you'll have to pay penalty and interest on the amount you underpaid.

Source(s)

by koiboy - 6 years ago

You'd be wise to send a quarterly return and pay around $1000. Use form 1040ES, and send it by Sept 15. You don't have to pay in EVERY quarter since he is no longer working for them.

by Judy - 6 years ago

Who knows you might be able to get away with it. You have 3 years to hide from it. If $3,150 is the only amount made for the year, then there is no problem. Was it a W-2 or a 1099-Misc? 1099-Misc means that your husband was an independent contractor for the company meaning the corp doesn't have to worry about paying taxes on his behalf. That means if the company reports his income you have to report your income because they will find out. I suggest you file an amendment tax return on the year the inceome was reported if it was this year then just have money saved up to pay the taxes yourself. no more than $300 for the amount described.

by $port$Fan - 6 years ago