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Taxable?
Old 10-30-2009, 02:24 PM   #1
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Taxable?

First of all I think this is wrong. But, a friend said he was doing part time work for a small shop. The deal is thry are going to pay him with check that is under $600. They told him no one has to report it that way. They claim it's not illegal. I can't see this, he claims it will be the only outside money he get's besides Soc. Sec. He also claims they can do it with his wife getting a under $600 check. Is this crazy or does he just want to justify it?
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Old 10-30-2009, 02:31 PM   #2
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I would rather be paid in cash, which is just as good as money and less traceable than a check.
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Old 10-30-2009, 02:36 PM   #3
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For 1099 "employees", payment under $600 doesn't require reporting from the employer's side. It is still income to the one receiving payment. And it is not under $600 per check, it is under $600 total for the tax year per person.

Not sure about whether w-2 employees must be reported on for amounts under a certain threshold. I guess if there is no reporting then there is no w-2.

See disclaimer below.
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Old 10-30-2009, 03:19 PM   #4
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Cash is King.

Otherwise, better to claim it if there is a paper trail involved.
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Old 10-30-2009, 04:16 PM   #5
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Quote:
Originally Posted by FUEGO View Post
For 1099 "employees", payment under $600 doesn't require reporting from the employer's side. It is still income to the one receiving payment. And it is not under $600 per check, it is under $600 total for the tax year per person.

Not sure about whether w-2 employees must be reported on for amounts under a certain threshold. I guess if there is no reporting then there is no w-2.

See disclaimer below.

If you paid someone as am empolyee, then you withheld SS... you must report no matter how little...



Edit.... and I think I will be getting a W-2 from my old employer... have some restricted stocks where I get 38 cents a quarter... which is considered 'income'....
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