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If my boss pays me with cash or personal check do they still take out taxes?


taxes that were taking out of my check when i worked elsewhere and got a payroll check i was able to file at the begining of the year and get back. the taxes that are being taking out of my pay now i cant file and get back. could he just be pocketing the money he takes out for taxes.

He's probably not bothering to take out taxes. Did he ever have you fill out a form asking how many exemptions you claim?
Chances are if you file taxes and don't have a W-2 form to turn in, the IRS will consider you a free-lancer, expect you to keep track of your earnings, and pay the corresponding rate of taxes. That means no refund, since nothing was withheld. Many people in your position enjoy getting paid under the table like in cash, and they don't report the income. Millions get away with it, though it is illegal. You should probably ask your boss, but don't start with the accusation that he's pocketing your withholdings.

they cant take out income tax if they pay you with cash.

You ought to get a 1099 or W-2 showing what taxes were withheld, but even if you're being paid cash you ought to be able to find out how much of which taxes are being withheld.

Some taxes withheld from the check aren't income taxes - I don't think anybody ever gets back FICA taxes. There are also state and local taxes.

How do you know he is taking out the taxes? for instance if you make 10.00 and hour and work 40 hours are you recieving 400.00 or something less? if it is something less then he is probably pocketing the taxes. You should still get a W2 at the end of the year that shows the gross wages and the taxes withheld. If he doesnt you need to get another job. he is stealing from you

if you are paid with cash no taxes are being withheld or paid on your behalf. and unless he gives you some breakdown with his personal check - i'm willing to be the same applies there as well. yes he could very well be pocketing tax money however if he's not taking tax money from you, he's not paying it for you and you dont have the tax liability. you follow ? being paid cash is great but dont let him say he's taking taxes out and then doesnt pay in on them. thats criminal.

Your suspicions are probably correct. But you need to be bold enough to ask him. How much are you supposed to make an hour times the number of hours you work. Without a pay stub, you need to be making a copy of each check to protect yourself later.
It has been my experience, when an employer is paying you under the table, it is mostly for his convenience, not yours.
First, it is illegal, next, you get no Social Security contribution. And if he is collecting the tax, he probably is pocketing it, illegal again. Finally, when at tax time he says, I paid you $10,000, and you say no only $6000, how can you prove it to the IRS?

Look for other employment, unless something is worth you staying.

If I were you, I'd be concerned that he wasn't turning you in as an employee at all, which means he's not withholding any taxes from your pay. The problem is when you file your taxes and turn in what you've made, you will have to cover the expense yourself as if you were self-employed. You may have trouble getting an accurate W-2 from him.......or even getting one at all. One of my friends had a situation with a place that went out of business before year end, and she couldn't get a W-2 at all. I don't know what she ended up doing to complete her tax return. Ask your employer if he is considering you to be a contract labor person (which means all the taxes are your responsibility) or if he's holding out your taxes for you. Better to find out and be prepared than surprised during tax season!

There are two ways to work. As an employee, your employer takes out social security, medicare, and you sign a W4 telling the company how much to take out of your check for Federal Income Tax. The employer also pays the same amount for social security and medicare in your behalf. Those are known as employer taxes. You get a W-2 at year end stating your wages and withholding. Or. . .you work as contract labor. The employer withholds and pays nothing on your behalf. You are responsible for paying all (employer & employee amounts). As contract labor you are allowed deductions for business expenses and pay on a net amount. You file a schedule C on your income tax plus others that involve your social security. The IRS will require estimated tax payments throughout the year also. As contract labor, you are to use your own tools, set your own schedule and lots of others. You get a 1099 at year end stating compensation you have received. An employer can't pay as contract labor to one person and another as an employee if they do the same job.
So if you were under the assumption you are an employee, you will be responsible for 7.5 % more in ss/medicare you will have to pay plus your taxes have just become more difficult to do.
You better sit down and have a talk with him. You also need to keep records of whatever you have been given. It doesn't sound like he does. And if he says your contract labor and you decide that is ok, ask for a raise to cover your taxes and bookkeeping fees. That should have been explained to you when you started.
Contract labor is used more for hiring a person or company to do a specific job like add a room to a business or enlarge the parking lot. The company gives a bid and if accepted then brings their own work crew and tools and works their own schedule and when the job is completed they leave. However I work as contract labor as a bookkeeper. I am hired to do the bookkeeping. I come in and do it and am gone but I come back again next week or whenever. I do work in their office but I can also work on my own equipment. Hope all of this helps. . .

Sure, they can take out tax if they pay you with cash or a personal check. And in most cases they are required to, although some sleazy employers don't.

In any case, if taxes are being taken out, you should get a paystub or some kind of record for each check of what is being taken out and for what. If you aren't getting that, ask for it. If you still don't get it, you are probably right to be suspicious that your employer is just pocketing the money he takes out - that's illegal of course, and would be stealing from you, but unfortunately it does happen. Ask if you will be getting a W-2 in January. If he says no or seems evasive about it, you can report him to the IRS - and it would also be a good idea to look for a different job.

Good luck.

Cash payment is almost never reported to IRS and if it is, it will be in the form of 1099 for labor. At the end of the year, if you made over $800. you will have to file it as income and pay the taxes. I don't think you have a good deal here. Hopefully you can do better.

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