Anyone have a job where they get paid through Paypal?
My wife started a job and doesn't get a W-2 or anything, just paid cash weekly through Paypal. She is considered an independent contractor not an employee. It's not a lot of money, but anyone dealt with this before?
Don't weep for the stupid, or you will be crying all day
February 11, 2018, 06:46 PM
arfmel
I'm just old fashioned enough to think that's kind of fishy.
February 11, 2018, 06:51 PM
steve495
Employers must issue Form W-2 to all employees they withheld taxes from, and any employees 1099s to any contractor paid $600 or more even if they did not withhold any taxes.
There are penalties if the employer does not provide the W2 1099. (The employer is penalized, not the employee.)
The payment method does not really matter. She'll have to claim the income even without a W2 1099 in-hand. Even if handed cash, that's income.
Mot of my clients do provide me with a W2 1099, but some are under the limit and do not. I still treat that as income and pay estimated taxes quarterly and settle up in April each year.
Concerning PayPal, they may have an issue with business payments made for services if it's done through their person-to-person system to avoid their fees.This message has been edited. Last edited by: steve495,
Evil exists. You can not negotiate with, bribe or placate evil. You're not going to be able to have it sit down with Dr. Phil for an anger management session either.
February 11, 2018, 07:45 PM
V-Tail
quote:
Originally posted by steve495: Employers must issue Form W-2 to all employees they withheld taxes from, and any employees paid $600 or more even if they did not withhold any taxes.
There are penalties if the employer does not provide the W2. (The employer is penalized, not the employee.)
The payment method does not really matter. She'll have to claim the income even without a W2 in-hand. Even if handed cash, that's income.
Mot of my clients do provide me with a W2, but some are under the limit and do not. I still treat that as income and pay estimated taxes quarterly and settle up in April each year.
Mrs. Vaalic (Lady Vaalic?) is being paid as an independent contractor, not as an employee. That might or might not be legitimate as there are IRS rules that define independent contractor status, but for the sake of this discussion, let's assume that she meets all the tests and is a legit independent contractor.
In that case, she does not get a W-2, nor are payroll taxes withheld. As an independent contractor she is responsible for all payroll taxes and she should receive a 1099 form, not a W-2.
הרחפת שלי מלאה בצלופחים
February 11, 2018, 07:55 PM
BamaJeepster
Do a real thorough check on the employer. Every case I've seen (I work at a bank) has been a scam. This is a great way for them to pay people and disappear with no trace.
Of course it could be legit, but it's very fishy.
“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence.” - John Adams
February 11, 2018, 08:02 PM
slosig
quote:
Originally posted by steve495: Employers must issue Form W-2 to all employees they withheld taxes from, and any employees paid $600 or more even if they did not withhold any taxes.
There are penalties if the employer does not provide the W2. (The employer is penalized, not the employee.)
The payment method does not really matter. She'll have to claim the income even without a W2 in-hand. Even if handed cash, that's income.
Mot of my clients do provide me with a W2, but some are under the limit and do not. I still treat that as income and pay estimated taxes quarterly and settle up in April each year.
Concerning PayPal, they may have an issue with business payments made for services if it's done through their person-to-person system to avoid their fees.
Don’t independent contractors get 1099s (if paid more than $600 by any one client in any year) rather than W2s?
With independent contractors, the employer dodges payroll taxes and workers comp insurance costs. The worker gets stuck paying self employment tax (analogous to the employers half of payroll taxes as well as the employees.
Being an independent contractor is fine as long as you keep your paperwork/taxes in order and get paid enough to be happy with it.
Evil exists. You can not negotiate with, bribe or placate evil. You're not going to be able to have it sit down with Dr. Phil for an anger management session either.
February 11, 2018, 08:33 PM
Lord Vaalic
It's a legit business, and they are paying her. It's doing transcription stuff for businesses, closed captioning, legal transcriptions, etc. They have been paying her and there are many others doing it, it just seems odd to me.
Don't weep for the stupid, or you will be crying all day
February 11, 2018, 09:05 PM
Rey HRH
quote:
Originally posted by Lord Vaalic: It's a legit business, and they are paying her. It's doing transcription stuff for businesses, closed captioning, legal transcriptions, etc. They have been paying her and there are many others doing it, it just seems odd to me.
Is she getting paid through Paypal friends and family? Or is the money transferred via a business transaction?
It could be a small time business and they use paypal to do their invoicing and use it to pay contractors as well. Otherwise, they would cut her a check but that's more expensive.
"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.
February 11, 2018, 09:25 PM
VBVAGUY
If she is being paid for services through regular PAYPAL then there is a very good possibility that she will be paying PAYPAL fees. However if she is paid through friends and family then I believe there are no fees. God Bless
"Always legally conceal carry. At the right place and time, one person can make a positive difference."
February 11, 2018, 09:38 PM
Balzé Halzé
Paid through PayPal? Uhhhh, heck no.
~Alan Acta Non Verba NRA Life Member (Patron) God, Family, Guns, Country
Men will fight and die to protect women... because women protect everything else. ~Andrew Klavan
February 11, 2018, 09:56 PM
SR025
Sounds super sketchy
February 11, 2018, 10:00 PM
RogueJSK
February 11, 2018, 11:46 PM
DMF
quote:
Originally posted by Lord Vaalic: My wife started a job and doesn't get a W-2 or anything, just paid cash weekly through Paypal. She is considered an independent contractor not an employee. It's not a lot of money, but anyone dealt with this before?
Regardless, of cash, check, paypal, etc. If she is truly an independent contractor, payments to her will need to reported, and she should get a "1099" from the company with whom she "contracts."
However, if she is actually a regular employee, not a contractor, and this is a scheme to avoid proper tax reporting, then she and her employer are exposing themselves to both civil and criminal liability.
Lots of employers and employees wind up in trouble trying to play fast and loose with this.
___________________________________________ "He was never hindered by any dogma, except the Constitution." - Ty Ross speaking of his grandfather General Barry Goldwater
"War is the remedy that our enemies have chosen, and I say let us give them all they want." - William Tecumseh Sherman
February 12, 2018, 05:04 AM
PHPaul
I've worked informally doing maintenance and repairs for a local building contractor for several years.
Gross income averages around $2000 annually. (That includes what I bill him for parts and supplies).
The first year I made enough to warrant a 1099, I had to apply to the state for "Predetermination as an Independent Contractor" and provide him with a copy of the approved application for his files to cover him if he was audited.
Otherwise, even if I claimed the money and paid taxes on it, his ass was in the wind for not paying Workman's Comp and Social Security taxes on me, as they would deem me an employee.
Be careful when following the masses. Sometimes the M is silent.
February 12, 2018, 06:17 AM
SIG 229R
I can't speak to the 1099 form thing or anything about the tax side of it but, I personally would not trust pay pal any farther than I could see a midnight blue car on a dark and moonless night. There is just something about pay pal I have never trusted which is one of the reasons I closed my PP account.
SigP229R Harry Callahan "A man has got to know his limitations". Teddy Roosevelt "Talk soft carry a big stick" I Cor10: 13 "1611KJV"
February 12, 2018, 02:31 PM
Rey HRH
quote:
Originally posted by SIG 229R: I can't speak to the 1099 form thing or anything about the tax side of it but, I personally would not trust pay pal any farther than I could see a midnight blue car on a dark and moonless night. There is just something about pay pal I have never trusted which is one of the reasons I closed my PP account.
Because writing a check and sending it by mail is so much better???
"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.
