Does My Wife Need To Have Taxes Withheld At Her Empoyer?
My wife works for a company in NH that has done over two million in sales this year. She is working for them as a sales person/ customer service. She makes around 30 k a year and has been for 3 years now. They are not taking taxes out of her at all. I am wondering if they suposed to be instead of her paying in quarterly. They told her to file her taxes as a subcontractor. She also lives in Massachusetts. Not sure if that matters or not.
Thank you to anyone that can answer this.
From what you say, it sounds like your wife
is being classified as an independant contractor and not as an employee. So, not taxes are being withheld.
Yes, She filed her taxes as being self employed. I guess only because she does not have taxes taken out of her pay check each week. Her tax accountant said that her employer is supposed to be taking taxes out of her, and that he is only doing that to save money. Also a coworker of my wife was told the same thing from their tax accountant. So I guess my main question is, should her employer be taking taxes out of her, or are they not doing things legally?
At the end of the year, did your wife receive a 1099? If she received a 1099-MISC, with all her income reported as Non-employee compensation (box 7), then the company she works for does not consider her an employee, but rather an independent contractor.
By the way, using independent contractors is good business sense for a lot of companies. Independent contractors are not covered by workmen's comp and are not entitled to health benefits.
Nothing illegal unless there is more to the story.
This is the first year that I had her demand a 10-99 miss from the company. In the past, a 10-99 was never giving to her, it was also late this year and was not done in a profesional manor. The years other then this one she did not recieve one at all. Just a total earnings amount for the year was provieded to her, and that was over the phone.
I thought I read somewhere a while back that if you are working from a home buisness, and you have made over 1400.00 in the year that you have the right to ask your employer to have taxes withheld for you. Does that apply to her? Or is that from some other instance that I am thinking of?