My boss pays me by personal checks and doesn't take anything out...?

Question

Is that completely legal?

Am I going to really be in trouble come tax time and owe thousands?

(My check is rather small as it is.)

And, yes, I am sending out resumes and looking...I know this situation isn't ideal.

Thanks!

Answer 1

Yes.  He's treating you as a contractor, not as an employee - so you're responsible for paying all your own taxes.

The IRS expects/requires you to make quarterly tax payments based on your income.

Answer 2

call the labor board

Answer 3

he should give you a 1099 at the end of the year.  when you started the job, did you know that was the way the payroll would be?

Answer 4

If he files taxes on you as contract labor you will owe taxes on all the money. Ask him if he is going to file a 1099 on you.

Answer 5

It's completely ILlegal if an employer/employee relationship exists.

If he issues you a 1099 at the end of the year, you'll need to report and pay taxes on that income.

You're also not contributing to disability insurance, nor are you covered by worken's compensation. If you get sick or injured, you're on your own.

Definitely find another job. This is no way to run a legitimate business.