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Wandering17
New Member

What to do when you've worked as a contractor and was hired as regular employee?

I'm currently residing in Nevada. My employer gave me w9 and I worked as a contractor for 2 months.I earned about $4000 or less during those 2 months.I am now their regular employee and signed a W4. My question is, do I need to pay quarterly taxes for 2 months of being a contractor?

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Accepted Solutions
JulieCo
New Member

What to do when you've worked as a contractor and was hired as regular employee?

For 2019, you have a couple of choices:

1) You could make a quarterly tax payment for the 1st quarter of 2019 that would be due April 15, 2019 for taxes on the $4,000 of income you received for the first two months of 2019.  Then, since you are now a W-2 employee, you would not need to make additional quarterly payments for the remainder of the year.  See the link below for how to generate 1040ES forms for 2019 in TurboTax. 

2) Since you are now an employee, you could adjust your withholding amounts on your current paychecks to be sure to cover the additional taxes that will be due for the $4,000 earned the first two months of the year.  You can determine new withholding amounts by utilizing TurboTax’s W-4 Withholding Calculator




[Edited 3-28-19]5:43pm




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5 Replies
JulieCo
New Member

What to do when you've worked as a contractor and was hired as regular employee?

For 2019, you have a couple of choices:

1) You could make a quarterly tax payment for the 1st quarter of 2019 that would be due April 15, 2019 for taxes on the $4,000 of income you received for the first two months of 2019.  Then, since you are now a W-2 employee, you would not need to make additional quarterly payments for the remainder of the year.  See the link below for how to generate 1040ES forms for 2019 in TurboTax. 

2) Since you are now an employee, you could adjust your withholding amounts on your current paychecks to be sure to cover the additional taxes that will be due for the $4,000 earned the first two months of the year.  You can determine new withholding amounts by utilizing TurboTax’s W-4 Withholding Calculator




[Edited 3-28-19]5:43pm




Wandering17
New Member

What to do when you've worked as a contractor and was hired as regular employee?

Thank you. I forgot to indicate that I started as a contractor last January 3, 2019 up to March 15, 2019. I signed W4 for the same company on March 15, 2019. Now I'm confused and worried at the same time. Do i need to pay quarterly (divide taxes) from $4000 I earned in total for those 2 months or Do I have to pay the taxes in full this April which believe the 1st quarter for paying quarterly taxes?
JulieCo
New Member

What to do when you've worked as a contractor and was hired as regular employee?

Ok.  Thanks for the clarification that you are talking about 2019!  I have revamped my answer above, so please go back to it to see a couple options for handing the taxes for 2019.  
Wandering17
New Member

What to do when you've worked as a contractor and was hired as regular employee?

Wow! Thank you so much! Good thing I didn't hesitate to ask question on this page. Again, than you for your help. I appreciate it a lot!
Wandering17
New Member

What to do when you've worked as a contractor and was hired as regular employee?

One last question.  With $4000 how much in total do I have to pay for quarter tax this April?I'm confused with income and self employement tax in Nevada .  Thank you so much
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