Hot answers tagged

177

It is perfectly fine to be hired as a contractor, provided that (a) you are treated as a contractor, not an employee (basically: nobody can tell you what to do, and you can at any time get a replacement to do your work), and the payment is adjusted (my rule of thumb is that as a contractor, your daily rate should be about the same as 1/150th of an employee's ...


104

Yes, it would be inappropriate. It doesn't matter that they are official documents, they're still personal documents - i.e. not part of the company's business. There's no reason your employer should pay for your personal life. And frankly, it's a first class stamp.


87

Bring this question to a lawyer. If you believe that any laws have been broken, simply quitting could get legally messy since it is unclear what your employment classification is. A labor attorney would do a much better job of explaining what your options are in this situation than we ever could.


58

Prior to this conversion they were paying a flat $20.00 per hour for your services. Now they're paying $20.00 per hour and additionally paying things like workers compensation, health insurance, 401k, payroll taxes, etc. None of these costs come out of your $20.00 per hour pay rate. The cost to them is greater than the $20.00 per hour they had been paying ...


47

Actually, that's something that your Human Resources or Payroll department should handle. I'd go to them and tell them what happened and ask them to figure it out because taxes and other deductions will have to be accounted for as well. Calculating the taxes is their responsibility and they'll have no problem figuring that out for you. You could do it ...


43

I know that sending personal mail (for instance, sending a letter or a package to a personal friend) on the company's bill would be inappropriate or unethical If that's the case at your company, then certainly sending your personal tax return on the company's bill is equally inappropriate. And if you aren't sure if it's appropriate - just ask your boss ...


41

There is a difference, but it typically goes the other way. When you are a 1099 you pay both halves of the FICA and Medicare taxes. When you are a W-2 your employer pays half. Additionally, you typically don't get much by way of benefits as a 1099, but you do as a W-2. Whenever I've looked at doing work under a 1099 agreement, I've asked for 25-30% more ...


36

Save your last pay stub of the year. If an employer refuses to file W-2's, the IRS will accept that as "interim documentation." Employers have until the end of January to file them. Most file them immediately, as everything is done by a payroll management system, and it's just a question of making sure all the payroll entries for the year were correct, ...


21

First, she may mean to say that the software you use will not allow a married person to withhold at the single rate. Taxes seem incredibly complicated to people who aren't exposed to them on a regular basis, and many take a "black magic" approach to what their payroll system provides. An employer must withhold the amounts as detailed in IRS Publication 15 (...


19

if they are paying you with a check they aren't paying you under the table. They use a check when they want a paper trail, they use cash when they don't want to a paper trail. If they were classifying you as a employee they would have had you complete a W-4 (both Federal and the state version). If they are planning on having work as a contractor they should ...


18

The IRS and the federal Department of Labor have a number of good resources about this problem. It's a predicament that has become fairly common, unfortunately, but it's definitely one you can work through so I wouldn't recommend leaving the job simply due to a potential misclassification. Given the information that you provided, the IRS may consider you a ...


16

Is that understanding in error, or has the law been changed, thus allowing electronic distribution of W2's? From the IRS website, as of January, 2013: Furnishing Form W-2 to employees electronically. You may set up a system to furnish Form W-2, Wage and Tax Statement, electronically. Each employee participating must consent (either electronically or ...


16

No, it's not unreasonable to ask. You're getting less take home pay for the same amount of work. However, it's also not unreasonable for the employer to refuse. After all, a majority of their employees voted for the people who increased the taxes. There's also the small matter that you didn't demand your pay get cut when the FICA taxes were cut two years ...


16

The reason this is such a headache is because it's not that they haven't paid you but that they have stopped you an incorrect amount of tax. They can't just transfer you the £300 and call it quits because from the point of view of HMRC (I'm assuming you are in the UK with your use of £) that would be an additional payment to you..which would in of itself be ...


15

It's inappropriate. It's your private mail. But then, nobody really cares unless you have a first grade penny pincher. But then, should there be an occasion where your company wants to get rid of you, someone may have noted what you've done and it might just be enough rope to hang you. Especially in Europe, where layoffs can be quite costly, the money ...


13

It avoids the risk (to them) of your being reclassified (by the CRA) to be their employee and for them being liable retroactively to pay the employer portion of payroll taxes (plus interest and maybe penalties). You could also demand pay in lieu of notice, vacation pay etc. if you decided to call yourself an employee. You need to talk to a Quebec-based tax ...


13

Full disclaimer - I am not an accountant. It sounds like this is almost certainly your former employer's fault rather than HMRC. You're clearly still on the payroll system (which HMRC will have a record of), the P45 issued in July clearly isn't valid for a job you left in November (you can't issue a P45 6 months in advance, that's ludicrous) and thus it's ...


12

This is obviously USA. The employment taxes (social security and medicare) amount to 15.3% of your gross wages. When you're a W2 employee, your employer pays half of this and withholds the other half from your paycheck. When you're independent (1099) you're expected to pay the whole amount yourself, from the money you earn. You need to file a quarterly ...


11

There are two parts here which are important. That you do not have any regular raises or other "standard salary increases" (a lot of companies have a small, inflation-type raise which is applied each year) is a big factor. It means your company is much less likely to adjust salaries for something like this, because they have already decided it is ok to pay ...


11

If the company was paying you either as a w-2 employee or as a 1099 employee they owe you the required form by the end of January. They also have to submit copies to the IRS by the end of February. Check the IRS website and the state taxing agency website for info regarding steps to take. if you haven’t received your W-2, follow these four steps: ...


11

In the US, amounts withheld from income for taxes must be passed to the IRS on either a monthly or semi-weekly basis.


11

I have been a self-emploeyd developer myself, here in Germany. There are several things you need to consider. You have to register your business with the local authorities. You´ll get a tax-number for registering VAT (Ust. id number). You need this number to write invoices and pay the VAT. You´ll have to do some bookkeeping and reporting of your turnover (...


9

Incorporating is relatively cheap (a few hundred dollars) and you can ignore the company later (or wind it up) should you no longer wish to work through it. If you're in Ontario, it provides pretty good instructions; other provinces presumably have similar page. That is not the real problem. The problem is your compensation under this arrangement will be a ...


9

Whatever they're offering, it doesn't do you any good (or harm). W-2 is for employees and shows your wages, salaries and tips, plus any amount withheld for state and federal income tax. The alternative is a 1099 which just shows how much you were paid as a contractor. You'll end up paying the same tax either way unless you have some unusual tax situation. ...


8

Can employers see whether or not I paid taxes certain years in a background check? The answer is, it depends. Average employer, probably not. Their background check will not be that thorough. One that requires a more extensive background check, it is more likely that they will. If you are applying for a position that requires a financial check they ...


8

in the United States your employer will need to do two things: collect taxes from you, and send that money to the proper authorities. They need your SSN in order to do that. The other thing they will have to do is complete with your help the I-9 form to document your right to work. They will keep this form for the entire time you are an employee, plus and ...


8

Is there any way I can explain well and convince them? If your employer has never hired anyone who worked in the US then you could go over the details of the impact on your take home salary. Calculate your expected after-tax salary if you were to stay in the US and compare it to your after-tax salary you would get in Shanghai. But I'm not sure why you feel ...


8

A 500% raise is unlikely to happen in your scenario and could cause an issue if discussed. Firstly companies are very wary (quite rightfully so) of having people who cannot be replaced. Secondly you don't know if they actually have the budget for it. Plenty of other reasons such as morale etc,. If you were one of my guys I'd start looking for your ...


7

Simple solution, ask your boss. I've sent many an item using the office post (and even via courier from time to time). Each time, I've just asked the boss. If your boss says no, don't push. Just ask for a longer lunch break tomorrow so you can head to the post office.


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