I was being paid in cash for 5 months in 2023, but my employer was taxing the cash. What do I do?? What do I file?

[SteamTrain]

You need to find out how the employer is reporting that income to you.

Could be either a W-2, or a 1099-NEC, depending on whether or not they were treating you as an actual employee, or an independent contractor.......and in either form, the tax withholding could and should be reported on that form, if the employer is operating correctly.

[srivera-24]

Okay… I mean I was definitely her employee along with 4 other people. She owned the business all I did was do my job which was to watch kids. So is she suppose to give me both w2 and 1099 OR one of the other??? 

[srivera-24]

And she was taxing my cash, she said the money she taxed out each pay was being sent to payroll or somewhere .. 

[Hal_Al]

Yes, you should be expecting a form W-2, which could arrive as late as Feb. 7.  It sounds like she is using a payroll service to handle the paper work for her. 

[srivera-24]

But she said she was sending the tax to payroll like … if 75$ was taken out of my pay bc its tax she said she sends that to payroll. Idk, I just don’t know how to go about this to file my income taxes 

[wjkaper]

If she claimed she withheld taxes from your "paycheck" (even if that paycheck was her handing you cash), you should get a W2 from her/her payroll company. By law they have to send it out by 1/31, so if they mail it you should have it no later than 2/7. You can always reach out and ask if you can pick up the W2 or download an electronic copy (or having it emailed to you) so you can file. I wouldn't get worried unless you don't have the W2 by  2/7

IF your employer tries to subsequently claim you were not an employee and were instead a 1099, just threaten to file an SS-8 with the IRS claiming you were an employee and had taxes withheld and that you will "let the IRS sort it out".

Trust me, you will have the W2 sent to you in haste. 🙂

[Hal_Al]

Q. I just don’t know how to go about this to file my income taxes?

A. 1. You wait for the W-2.

     2.  If you don't receive it by Feb 7, you call her and ask for it.

     3. If she gives, you the run around, ask her "do I need to file an  SS-8 with the IRS and let them sort it out.

     4. Reply back here, for instructions, there are IRS procedures for this situation, but it isn't simple.

[srivera-24]

Okay! I did text her about the w2 and that since I was being paid in cash that if need be need documentation filed stating I was being paid in cash and she said that everything is on her computer and hasn’t been able to receive her computer because it’s the building we worked in and she can’t get into it yet. I’m just gonna wait for a w2 like suggested and if not by February 7 I’ll then do as suggested as well. 

[srivera-24]

I guess only real concern is is like how do I know my W-2s correct? How do I know that that information on the W-2 is correct and that she included her pay me in cash I guess that’s like my real concern.

[Hal_Al]

Q. I guess only real concern is is like how do I know my W-2s correct? How do I know that that information on the W-2 is correct and that she included her pay me in cash?

A. There is no way to do that, after the fact. You needed to do your own record keeping at the time, if she didn't give you a "pay stub"/receipt. For example, you got paid $10/hr for 10 hours work and received $80 cash. Receipt of your W-2 should account for the missing $20 in boxes 2,4,6, & 17 (and sometimes box 19).

https://www.irs.gov/pub/irs-pdf/fw2.pdf

[srivera-24]

I didn’t get any receipts by her, and the only “record” I have of being paid in cash is like text messages confirming my amount and she was using an app to calculate how much everyone would be paid and I downloaded the same app and I kept record of my hrs and breaks all on there. 

[Hal_Al]

That's excellent! You basically have a 21st century "pay stub".  There's two bits of good news there. 1. You have the info you will need and 2. It sounds like she is well organized and you can probably expect a W-2, even if it's late.  Under the IRS "no W-2 procedure" you cannot do anything before Feb 15. 

[srivera-24]

Okay that’s great! But what if she doesn’t report all the money in cash and my w2 is wrong ? Bc I have a heartland account and I can print out my W2 that is on there but idk if I should bc idk if it’s correct ..I guess

[Hal_Al]

Q.  But what if she doesn’t report all the money in cash and my w2 is wrong?

A.  There's a procedure for that, if you have good records.  Otherwise, you stuck with what you get.

Q. Bc I have a heartland account and I can print out my W2 that is on there but idk if I should bc idk if it’s correct.

A. If you don't know if it's correct, then you're stuck with it.  You own good record keeping is your only defense against bad record keeping on her part.

It sounds like you over worrying about this. It sounds well documented to me. You say, "I can print out my W2". You should do so.  It's not unusual for an employer to expect the employee to get his own W-2, from "the web site", rather than and in addition to mailing him a copy.