taking taxes out of paychecks

brettsmama · March 2013

Anyone have experience with being paid cash for jobs versus being given a paycheck with taxes taken out? I'm stressed about trying to set aside enough money so that when tax time rolls around the money is there to pay. Also, there would be no w2, just stated income I guess. I'm thinking it would be better to get a regular paycheck with taxes withheld, but maybe I'm just making a big deal of nothing? Any advice is appreciated! TIA.

*sparky* · March 2013

This does not sound right. Are they saying you are a contractor vs. an employee? There are certain rules regarding employee v. Contractor status and if they are trying to treat you as a contractor when you really are working as an employee it is illegal

badkittyct · March 2013

My husband does some private teaching and even in some of his contractor jobs, they do not deduct state taxes - only federal. Thankfully, combining our incomes for tax purposes gets a refund instead of having him pay back.

I would pr

brettsmama · March 2013

sparky:
This does not sound right. Are they saying you are a contractor vs. an employee?
...
The employer taxes are

shannm · March 2013

Tangerine01:
If you are paid in cash, I don't see that you would need to declare that for taxes?
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MagickalNarwhal · March 2013

I agree that there are very specific rules for who is an independent contractor and who is an employee.

Taxes as an independent contractor: you will have to pay your normal tax rate, for federal and state income tax, on your NET PROFIT (so income

oooCarrieB · March 2013

My DH does freelance and gets paid as an independent contractor and gets a 1099. Since he doesn't make too much from this job, I just withhold extra on my paychecks, so it evens out at the end of the year.

I think most people who get paid on