Mon 14 Jul, 2014 12:24 pm
There is a small business in a small town, that has about 15 employees, yet they only have 3 that are on actual payroll. The owner is a big name in this small town and thinks they are above the rules. I know one employee is on public assistance and has to lie and say they dont work because its all inder the table. Im not sure how to go about turning this in or if i even should. Any help or insight wpuld be great
Businesses have the right to pay casual laborers for work done. Maybe this applies here.
Is there a reason why you think you need to report this?
If they do, they are required to send a 1099 to irs at year end if earnings are over something like $600.00. Employee then pays the taxes and probable both sides of social security and medicare.
Just call the irs. You might be eligible for the 10% reward.
This business is very shady, there is no 1099's which are required if taxes are not taken out. My reason for questioning reporting is that i am also a small business owner and i pay my taxes, as i believe we all should. And to have employees who lie to public assistance....that affecta everyone as taxpayers.
Possibly you meant to address me. In any case, 1099s are definitely required if taxes are not deducted for casual labor, under the conditions I described above. If you are a small business owner and employ people without deducting for individual and payroll taxes, you better get familiar with the law.
I am a small business owner and i DO pay payroll taxes, and am very well informed on that subject....however, the business i was speaking of does not pay them. All of their employees except a couple are paid under the table, and im pretty sure there are some other tax laws being broken however have no proof of anything other than the payroll taxes