More details to this question:
Worked for 5 years with family friends. Acted as a cash employee was paid with a check weekly. Took money out of my check weekly to cover taxes, and was never issued a W-2. I instead was issued a bonus called a "tax refund" at the end of the year. I never signed a 1099, and i only worked for them for so long because i decided having a job in this economy was more important. I was fired in 2010 and i found out i was ineligible for unemployment because i was never an "official" employee. I figure im out atleast 15,000$ in a tax refund, and im trying to figure out if this is common or if this is indeed business tax fraud. I worked full time, more than 40 hours with a verbal agreement that money was taken out to pay into SS and federal tax. They also avoided paying workers comp by having no more than 4 employees on the books. They called it bartering, you do this for me, i give you something, but they paid me out of their business account weekly. HELP PLEASE!
1 ANSWER
William/J Joanis
There are so many problems in what you have described, that it is hard to begin. If you were paid cash, and only had an oral promise to pay taxes and SS, did that actually occur, and did you pay your taxes? A 1099 is not something you sign, it is something the business sends, like a W-2, to reflect your income. You still have to file income tax returns, even if you do not get a W-2 or 1099. You simply report it yourself, rather than having the business report it for you. You didn't get unemployment, as you were not employed. And, as you describe it, you agreed to not be an employee. Your tax refund is related to your over payment of withholding taxes. Was money sent to pay SS and federal taxes? Since you never got a W-2, it would seem that was not paid, which means you need a tax accountant or tax lawyer: ASAP. What you described is not how any legitimate businessy operates.
Answered on Sep 11th, 2011 at 2:46 PM