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  #3  
Old 01-16-2005, 08:44 PM
Arthur L. Rubin
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Default Re: Deadbeat employer --- how is this handled???

MB_ wrote:

- quote -

> Ok, my daughter lives in California. She had an employer who
> was bad news. Basically, she got paid $300 in wages and got
> stiffed the last $150.
> Other employees did not get paid too.
> I have suggested that she seek compensation via small claims
> court of the Labor Board.
> But there remains a tax question:
> What does she do if:
> 1) She gets no W-2 form.
> 2) If she gets an incorrect W-2 Form


If she IS an employee, then she should read tax tip 2004-23:
<http://www.irs.gov/newsroom/article/0,,id=107470,00.html"What to Do If You Haven't Received a Form W-2"
(I assume the tip will be reissued for 2005, but probably
not until early February)

and form 4852, "Substitute for Form W-2, Wage and Tax
Statement". (I'm not sure what the procedure is for
wages reported but not paid. I think 4852 covers that
issue, as well, but I'm not certain.)

If she's an independant contractor, she should report
whatever she received on Schedule C, regardless of what
the "employer" reported, either on a W-2 or a 1099.

--
This account is subject to a persistent MS Blaster and SWEN attack.
I think I've got the problem resolved, but, if you E-mail me
and it bounces, a second try might work.
However, please reply in newsgroup.

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  #2  
Old 01-12-2005, 09:17 PM
MB_
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Default Re: Deadbeat employer --- how is this handled???

"rick++" <rick303[at]hotmail.com> wrote:

- quote -

> You report the income on schedule C. And pay Social
> Security tax if it was not withheld.
> Chances are if the employee does not receive a W-2 or 1099
> for this amount, it was not reported to the feds either.
> But they still want to know about all unreported income.
> The sum of these small amounts may qualify for a credited
> Social Security quarter (nearly $1000 for a quarter). Each
> credited quarter allows you to collect disability or
> retirement sooner than if you didnt have it. So that may be
> another reason to report the income.


Why do you report the income on Sched. C???

Mel

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  #1  
Old 01-10-2005, 10:29 PM
rick++
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Default Re: Deadbeat employer --- how is this handled???

You report the income on schedule C. And pay Social
Security tax if it was not withheld.

Chances are if the employee does not receive a W-2 or 1099
for this amount, it was not reported to the feds either.
But they still want to know about all unreported income.

The sum of these small amounts may qualify for a credited
Social Security quarter (nearly $1000 for a quarter). Each
credited quarter allows you to collect disability or
retirement sooner than if you didnt have it. So that may be
another reason to report the income.

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Old 01-10-2005, 09:51 PM
Stuart Bronstein
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Posts: n/a
Default Re: Deadbeat employer --- how is this handled???

MB_ wrote:

- quote -

> Ok, my daughter lives in California. She had an employer who
> was bad news. Basically, she got paid $300 in wages and got
> stiffed the last $150.
> Other employees did not get paid too.
> I have suggested that she seek compensation via small claims
> court of the Labor Board.


Small claims court and the Dept. of Labor are different
things. For wage claims the Dept. is the better place to
go. In addition to asking for unpaid wages, she should ask
for a statutory penalty which is equal to 30 days (working
days, no calendar days) of salary.

- quote -

> Also, I think the employer might have treated her as an
> independent contractor. But her hours were well defined. It
> was a performing arts school and she helped out teaching
> there. She had specific hours. So, again, how is this
> handled?


She should apply for unemployment. They'll sort out whether
she was an independent contractor or should have been
treated as an employee.

Stu

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  #-1  
Old 01-10-2005, 01:41 AM
MB_
Guest
 
Posts: n/a
Default Deadbeat employer --- how is this handled???

Ok, my daughter lives in California. She had an employer who
was bad news. Basically, she got paid $300 in wages and got
stiffed the last $150.

Other employees did not get paid too.

I have suggested that she seek compensation via small claims
court of the Labor Board.

But there remains a tax question:

What does she do if:

1) She gets no W-2 form.

2) If she gets an incorrect W-2 Form

Also, I think the employer might have treated her as an
independent contractor. But her hours were well defined. It
was a performing arts school and she helped out teaching
there. She had specific hours. So, again, how is this
handled?

MB

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