- quote -

You stil would have to pay 2.9% versus 1.45% on everything
for medicare. May be worth the difference.

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"sinc720d" <sinc720d[at]bellsouth.net> wrote:

- quote -

You should continue to be treated as an employee for
withholding purposes.

- quote -

That's true. Have you asked them how they will be handling
these payments?

- quote -

Not really.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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sinc720d wrote:

- quote -

You make a very good point. If social security (SE) tax is
not an issue, only the medicare tax is. On a 1099 form
you'll have to pony up the 1.45% since on a W-2 form the
employer would pay this amount.

Whatever you decide to do or make an issue of with employer,
just remember one thing: "Don't insult the alligator till
after you've crossed the creek".

Cheer$,
Harlan Lunsford, EA n LA
where we pronounce it "crick".

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sinc720d wrote:

- quote -

Your former employer should issue a W-2 (Box 1 wages,
salary, etc.) for each year of payment with all the proper
tax withholding based on the data they have for you. If in
any year you overpay your soc. sec. taxes due to having more
than one employer, you can request a refund on your income
tax return (Form 1040). In 2003 it was on line 64.

--
Alan
http://taxtopics.net

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I am leaving my current employer and will be owed some
commission income in the upcoming months that the employer
has already agreed to pay upon theirir cash receipts from
the client.

Assume the following:

I leave the company on July 1.

Commission payment #1 is due around October 1.

Commission payment #2 is due around February 1, 2005.

My question is should they be on the hook for the payroll tax
withholding?

If they pay me via a 1099, it seems like I might be getting
shortchanged by having to pony up for their side of typical
payroll withholding.

One more note: I am a high-income earner and will easily
surpass the limit for social security withhodling in both
2004 and 2005. If this is the case, should I even care?

Please elaborate.

Thanks!

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