Taxes

[smokiessky]

My wife got a job and they said to her they do not take out any taxes since she does not have a green card. Is that correct? She gets paid per hour. She does
have her Employment card and should have a green card by Oct.She only works about 30 hours a week.

[Randy W]

My wife got a job and they said to her they do not take out any taxes since she does not have a green card. Is that correct? She gets paid per hour. She does

have her Employment card and should have a green card by Oct.She only works about 30 hours a week.

 

 

Taxes are due on April 15. It is HER responsibility to pay any taxes that have not been covered by withholding at that time, whether her employer is acting legally or illegally.

 

If her company views her as an illegal alien, she may wish to find a different job, especially if they employ OTHERS they view as illegal aliens.

 

If on the other hand, they view her as contract labor, there is probably no problem. Look into filing quarterly (this may be necessary - in which case a payment would be due on Jan 15). In either case, she should get a 1099 by Jan 31.

 

For the estimated tax (quarterly filing), you need to figure your taxes due by Jan 15. As long as the 2 of you have paid 90% of the amount which will be due on April 15, by Jan 15, you will owe no penalty. There are other ways to avoid the penalty - get the Estimated tax forms.

[2mike&jin]

Taxes are due on April 15. It is HER responsibility to pay any taxes that have not been covered by withholding at that time, whether her employer is acting legally or illegally.

 

If her company views her as an illegal alien, she may wish to find a different job, especially if they employ OTHERS they view as illegal aliens.

 

If on the other hand, they view her as contract labor, there is probably no problem. Look into filing quarterly (this may be necessary - in which case a payment would be due on Jan 15). In either case, she should get a 1099 by Jan 31.

 

For the estimated tax (quarterly filing), you need to figure your taxes due by Jan 15. As long as the 2 of you have paid 90% of the amount which will be due on April 15, by Jan 15, you will owe no penalty. There are other ways to avoid the penalty - get the Estimated tax forms.

 

Randy is correct in several areas but the ENTIRE situation is troubling. First she is either an "independent contractor" (Contract Labor) or she is an employee. If she is an employee she is either an hourly or salaried employee. If she is an "employee" the company is required to withold appropriate city, county, state, and federal taxes, which include the "employee half" of the SS & Medicare taxes. There is no other legal way of them operating. If she was hired as a consultant/independent contractor/contract labor or any other of the loose terms that describe a non-employee performing services for a business then SHE is responsible for, as Randy said, submitting her Income Taxes Quarterly, as well as she is responsible for the ENTIRE SS and Medicare portions - roughly 15% of her gross wages. There is no other legal way to accomplish it.

 

First - I would strongly recommend that "someone" get her TRUE employment status defined immediatly. Either way TAXES must be reporteed and paid.

 

Secondly - in professional services the worker usually get's more money than an employee because they become responsible for all of their own benefits as well as the SS/Medicare taxes, plus the witholding/paying estimated taxes, depending on your view.

 

You can figure out by the companies reaction to the question of employment status - whether there is any monkey business going on. It is not unusual for company to hire independent contractors/contract labor - as it is a means to reduce the total cost for labor by the company and of course, shift the total responsibility for most of the reporting to the employee. The distinction when you ask is will I get a W2 or will I get a 1099 at the end of the year. THe W2 is the employee reporting that the company must send to the employee and a copy to the Gov't, and the 1099 is for independent contractor's/contract labor.

 

Best of Luck

[2mike&jin]

My wife got a job and they said to her they do not take out any taxes since she does not have a green card. Is that correct? She gets paid per hour. She does

have her Employment card and should have a green card by Oct.She only works about 30 hours a week.

 

 

I just noticed non of us really answered your question. The Green Card should not make any difference in taxes, one way or the other. If she has a SSN and or a TIN#, and a work authorization - AND she is an employee - then all appropriate taxes MUST be withheld by the employer. Bottom line, you need to find out if she is going to get a W2 or a 1099 - it will tell all about the status! Again, best of luck.

[bokiwen]

Another possible scenerio:

 

Depending on how she filed (or if she filed) her W2, she might not make enough money for them to take out federal taxes (this for example was the case with my wife when she started at Walmart). They did however take out the other deductions (social security, state, local, etc).

 

As per her green card and taxes, I'm not sure what her employer means by that.

[dnoblett]

Filing I-765 should result in an EAD card which serves as work authorization until receive green-card. K-1 is also considered work auth only for the first 90 days after entry, then after getting EAD or Green-card will be considered authorized to work by USCIS.

 

You should have SSN, K-1 can apply for one up 76 days after entry to the USA.