Yeah, it's a problem, Steph. 'Cause as I understand it, there are pretty strict rules about how a person gets classified as an employee or as a contractor (and if you're not getting a 1099, you're not even talking contractor here). Some of which include, does the employer set your tasks and control your hours.
Part of the problem is going to be, the government is owed not only your taxes on it, but your employer's side taxes (companies match your social security and medicare taxes that get withheld), which it seems clear they're trying not to pay. If you were self-employed entirely, you'd be making up that portion in your own taxes. For us, as a company, we pay those payroll taxes as well as, you know, not getting the employee portion in our salary income.
Steph, I think that bonus income is supposed to be reported on a W-2 if you're an employee and if you're not than on a 1099.
This is where Scola usually shows up and says [link], right?
Hey, while I have Steph, do you agree with my father that there is no way to get one's children adequately schooled in the Cincinnati public school system? He insists it's private/parochial, suburbs, or death.
You could just call the IRS and ask them what to do. This would probably get your employer in trouble, but I think that's inevitable.
But can I report self-employment income from the same employer for whom I'm a full-time salaried employee? That doesn't seem possible. Don't you have to be one or the other, in terms of who pays you?
In addition to my regular job at a university I get paid small amounts as a consultant to various people's grants. If the consulting money comes from a grant at another university, it's considered self-employment income. If to comes from a grant at my own university, even at a different campus of my university, it's considered a supplement to my normal income, and the university includes it in my W2. So to me it sounds a little strange that you company is handling it this way.
This is where Scola usually shows up and says [link], right?
I couldn't find any good recent job listings.
Impostor!
What have you done with the
real
Scola?
Fetish DVD of women in heels walking on model train sets: [link]
Worksafe. Images are small too.
But can I report self-employment income from the same employer for whom I'm a full-time salaried employee? That doesn't seem possible. Don't you have to be one or the other, in terms of who pays you?
I don't think so, but the more important question is, if you do it that way, don't you have to pay all the taxes on the income (income tax as well as you and your employers share of SS)? That represents a huge chunk of the amount. Plus, if your employer is not reporting it as a bonus, I wouldn't, but I would try my darndest to get him to account for it that way because self-employment forms are a pain. I would even accept a smaller amount to account for his share of SS security to avoid that paperwork.
