Tax question.

[tmc0021]

I did some work for this company, and they sent me payment in full without taking out taxes. Can I wait and pay these at the end of the year or do I need to pay these right now ?

 

[Innerlaner]

It's up to you. You can make an estimated payment now or pay it when you settle with the IRS in April. However, to avoid the underpayment penalty, you have to pay at least 90% of your current tax liability or 100% of your prior year's tax liability.

 

[Scooterdog]

I did some work for this company, and they sent me payment in full without taking out taxes. Can I wait and pay these at the end of the year or do I need to pay these right now ?

I am in a similar situtation in North Dakota. They never withheld.

I called the department of labor, they explained that it is the companies problem, and to report them to the IRS. (If they never paid the taxes, certainly they never paid work comp, unemployment, SS, etc...)

Do NOT wait. Start reporting. YOu can go to the IRS's website, it will explain if they can claim you were a contractor. I had to check that out myself, as they are going to pull this one on me. But, according to the IRS's website, which explains what a contractor is, I would not fall under that.

I bet you never got your overtime either. I'm going after some $10,000 in non-paid overtime for two years.

The department of labor seems to agree with me on all points and are very eager to help, which I find strange. (there were over 50 employee's that were shafted on overtime, most weeks having 44 hours of overtime)