"Joining" the working world here in the US

[danielm2]

Hi All,

 

My wife just started working at a Korean restaurant near us. Her first time being a waitress. It seems like it's alot of hard work for her, but so far so good.

 

Her English is alright, but I think working at a Korean restaurant is better than a Chinese one. It's forcing her to use her English, as opposed to relying on her Chinese. BUT, a number of people there are dealing with the whole English as a second language issue, so everybody understands the issues that each individual is working through.

 

One question/problem that I see arising though is the question of the tax forms and working legally. My wife has her green card and everything is alright on her end, but I'm not sure if her boss will have her fill out a W-2 form so as to take out wages for taxes, social security, etc.

 

Throughout my lifetime a few of my friends have looked at this as a 100% plus of working at a restaurant. However, being that my wife isn't a citizen, just got her GC, etc, I'd hate for there to be problems with the IRS and things like that.

 

Has anybody ever encountered this problem or have any advice? I'm not the resident tax expert, but would it be possible to just somehow claim all her earnings as miscellaneous income or something like that?

 

Thanks in advance for any help!

 

Dan (and Xuejing)

[Randy W]

Hi All,

 

My wife just started working at a Korean restaurant near us. Her first time being a waitress. It seems like it's alot of hard work for her, but so far so good.

 

Her English is alright, but I think working at a Korean restaurant is better than a Chinese one. It's forcing her to use her English, as opposed to relying on her Chinese. BUT, a number of people there are dealing with the whole English as a second language issue, so everybody understands the issues that each individual is working through.

 

One question/problem that I see arising though is the question of the tax forms and working legally. My wife has her green card and everything is alright on her end, but I'm not sure if her boss will have her fill out a W-2 form so as to take out wages for taxes, social security, etc.

 

Throughout my lifetime a few of my friends have looked at this as a 100% plus of working at a restaurant. However, being that my wife isn't a citizen, just got her GC, etc, I'd hate for there to be problems with the IRS and things like that.

 

Has anybody ever encountered this problem or have any advice? I'm not the resident tax expert, but would it be possible to just somehow claim all her earnings as miscellaneous income or something like that?

 

Thanks in advance for any help!

 

Dan (and Xuejing)

 

My wife worked at a grocery store that did that for all employees for the first month and a half (through Dec 31) they were open. Income was reported on 1099's - find out how this restaurant does it.

 

But your wife is no different from anyone else in this regard, as long as it is a legitimate business.

[dnoblett]

You will need to get a SSN from SSA to report taxes.

 

Employer needs to fill out and have on file an I-9

 

W-2 is the form that an employer provides you at the end of the year for filing of a return showing income and withheld tax, or form 1099 showing just income in cases where tax is not withheld.

 

You are talking about the W-4 withholding form: http://www.irs.gov/pub/irs-pdf/fw4.pdf?portlet=3

[LeeFisher3]

1099's seem to be popular with many asian businesses. But then some of them will pay a percentage of the wage in cash and only report the amount paid by check, which in some cases makes up the difference in the self-employment tax.

[C4Racer]

My wife has worked for two Asian businesses. Each one gave her a 1099 at years end. We were responsible for income taxes. Makes it easier for the business owner. This way they don't have to know as much about the complicated tax code. Hiring someone to perform payroll services could eat up profits in these low profit margin businesses.

 

Just make sure you set aside enough each month to pay them at years end. One thing I did to offset this was filed another w-4 at my work claiming zero and withholding at higher single rate. This way it is not as much at the end of the year.

Edited August 14, 2008 by C4Racer (see edit history)

[danielm2]

Thanks!

All my worries were for naught, today my wife's boss gave her the correct tax forms.

I guess that takes care of that.........

[The Jeff]

I think most restaurants wait to give new employees the W-4. With such a high turnover rate, it makes sense to see if they will stay with the job and are worth the paperwork.

[NewDay2006]

Good thread... food for thought,.... for the future.

Edited August 24, 2008 by NewDay2006 (see edit history)