Posted on 02/09/2016 8:07:31 AM PST by SeekAndFind
Hope they are still happy after they pay their self-employment tax and healthcare “taxâ€....
They are happy because they are NOT paying it.
To some extent automation. Think self ordering and check out kiosks, etc.. Even my job as a financial analyst in the medical field has been automated six months after my retirement. One highly paid software wizard replaced several reasonably paid analysts at several facilities. Ergo the average wage goes up although the total paid goes down.
Yeah.
Like the three hundred plus welfare programs, including the destruction of Social Security via the OTHER welfares, "permanent disability" and Mediaid...
D'OH!
How to lie with statistics.
“They are happy because they are NOT paying it.”
1099 Misc forms go to the IRS. I suspect their computer checks the ones received vs the tax returns. If you have more than $400 of income on a 1099 Misc, you are required to pay self-employment tax. And if you do not have coverage, and you do not have an exemption, then you owe the Obamacare fine (tax, per Roberts).
Of course, people can and do cheat on their taxes. The IRS is not very good at tracking fraud down.
You can be self-employed and still be on a W2 if you have your own sub-S corp. Large companies like the corp-to-corp model better, it cuts down on the paperwork.
I thought it was $600 and that that reporting requirement was removed from the ACA.
So, what happens when a Business that has payed someone tens of thousands and never files a 1099 with the IRS?
They just run it as an expense item and by not filing they don’t raise any flags.
Why in the world would a sub-S want to be on a W-2?
Or maybe they’re just quitting one of the three part time jobs they were forced to take to survive in this economy.
It is a common business model among the high-paid. You have a sub-S corp, rent yourself out to companies and invoice them, and they pay out all the money to yourself as a salary from your sub-S corporation. This allows you to dodge the 2% limitation of business expenses, and deduct your medical insurance as a business expense.
I go out to lunch with a guy like this. We discuss business for five minutes, and then he writes off 50% of the cost of the lunch as a business expense.
when you give away more then half of what you earn in taxes... it’s not your job anymore.
when you work more then half your life paying taxes... it’s not your life anymore.
you’re just a slave to the progressive machine.
can’t you feel the ‘privilege’ ?
Makes no sense to me.
If I invoice said company, there is no reason for them to do any W-9 withholdings. They would rather not be bothered by those paperwork requirements. I could be a Sales guy or a cleaning person and they would be much more inclined to just write a check and call it an expense.
As a Self-Employed person I get the gross amount and can manage my own deductions to off set my tax burden.
“They just run it as an expense item and by not filing they don’t raise any flags.”
As I said, “Of course, people can and do cheat on their taxes.”
If caught, the charge is fraud. For fraud, they can go back any number of years, and the fines are heavier. And the limit for self-employment tax is $400. $600 is when you must issue a 1099 Misc.
“It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income.
All income earned through the taxpayer’s business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040...
https://www.irs.gov/uac/Reporting-Miscellaneous-Income
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