Aren't all employees required to fill out W-4 tax withholding statements so federal and state income taxes may be deducted? I am working for an employer who pays us by cash so there are no such deductions. But don't employees have to pay federal and state income taxes on their cash wages? Isn't the employer responsible for providing employees with W-2 statements to show how much they have earned even though they are paid in cash? W-4 form required if boss
controls how you workThe very short answer: Yes.
But you did not leave a contact number so we couldn't get details.
There's a possibility that you are being treated as an independent contractor, said June Yamamoto, spokeswoman for the state Department of Taxation.
You are considered an employee if an employer sets work hours, provides the tools, tells you what to do and how to do the work, and can fire you, she said. If that's the case, the employer must withhold income tax on wages.
You're an independent contractor if someone has the right to control the result of the work but not the way that result is reached, Yamamoto said. An independent contractor usually has more than one client and is responsible for paying income tax by making estimated tax payments on the state's Form N-1.
Your questions both refer to federal forms. The state equivalent of the W-4 is HW-4 and of the W-2, the HW-2.
"It doesn't matter if the employee is paid cash, by check or any other form of payment," Yamamoto said. "Wages paid to an employee in any form is taxable and subject to withholding."
Employers are supposed to give employees Form HW-2, a statement of Hawaii income tax withheld on wages paid, by Jan. 31 or when the employee has terminated employment.
On the federal level - again, no matter how you're paid - you must file a tax return, report your wages and other income, and pay federal income tax, said IRS spokeswoman Shawn George.
You're exempted only if your gross income is below a certain level - for 1997, $6,800 for single people under 65 and $12,200 for married persons filing jointly.
Call the IRS at 1-800-829-1040 to find out what you should do, George said. "It may be that your employer should be withholding but refuses, and you would lose your job if you pressed the issue," she said.
The IRS also can advise you about estimated tax and other payments.
Another possibility: Your employer may be paying you "under the table" to avoid employer-related expenses, Yamamoto said. If so, you should find out if there is an employment contract or if there is a contract for independent services, she said. Call the IRS, the state Labor Department or state tax office to check on this.
In the meantime, report earned income and pay income taxes by making estimated payments of taxes on the state's Form N-1.
To whoever is in charge of maintaining emergency phones on the freeway. When I had car trouble on Oct. 16, I kept getting a busy signal for half an hour! What's the use of having these phones if they're always busy! Auwe
To the person who ran over my neighbor's beautiful cat of 10 years on Kawaihae Place in Hawaii Kai on the night of Oct. 15 and didn't even stop to help. Driving home, I saw a clump of fur in the middle of the street. She was still warm and appeared to be alive, bleeding slightly from her mouth. I placed her in a cardboard box, covered her with a towel, petted and talked to her. She died during the night. Please! No more drag racing and other careless driving on our street. Lots of children and pets play in our neighborhood. No more unnecessary accidents, injuries or deaths! Auwe
