Tuesday, March 28, 2006

 

1099-Misc

I guess it is back to immigration again......Since this is the
topic on the front of many newspapers, let us revisit the
1099-Misc again......

There are many ways to pay people for their services.....
#1 A paycheck with taxes and other benefits withheld.....
#2 Out of pocket CASH......
#3 A pay check with the issue of a 1099-Misc once a year.....
#4 Stock bonus and other "perks"......

With regard to the newly arrived immigrants, a lot are
paid in CASH or with the issuance of IRS form 1099-Misc
which denotes the payment of funds to a "sub-contractor"....
This contractor is now responsible for the payment of his/her
own IRS taxes at the end of the year.......

While most of us will see a 1099-I (Interest) or 1099-D
(Dividend) you know that it is reported on your tax form
IRS 1040 and the Government will match your copy of
the "form" with their copy of the "form"....Apples to apples.....

If a wage earner is making $18.00 with the filing of a 1099-Misc
the actual "take home" is approx $12.60 per hour....The
difference between the two amounts is IRS taxes due......

Question: What is the current amount of unfiled and
uncollected taxes due the IRS?.....Apples due equals apples
received.......This would be an interesting amount for a
politician to throw into the immigration debate along with
a determination as to where that money was spent.....Pumps
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