New Grad - no taxes taken from pay - page 2
So I'm a new grad who just started in LTC via agency (and i absolutely love it!! lol). The agency will not be taking taxes from my pay, and I asked them what I should do so I won't end up owing a bunch, and they simply said "I... Read More
- 0Aug 5, '10 by netglowYes, OP. I was self-employed for many years... save all receipts.
But don't call your local IRS (are ya nuts?) But do find an accountant. You will need to get a handle on this early if you end up staying self employed. An accountant will get you on the right track to avoid penalties. You see you can do most of the tax part yourself once you are set up and understand it all.
- 0Aug 5, '10 by rn undisclosed nameI do agency work and they take taxes out of my paycheck. You are an employee of the agency. Also, I believe an employer pays some portion of your SS or some other tax. If you are considered self employed I think you may also have to pay extra in taxes.
This is another topic, but, you're a new grad doing agency. I didn't think agencies hired new grads. I'd be afraid of doing agency work as a new grad. You really learn a lot in your first couple years of nursing that you don't have as a new grad.
- 0Aug 5, '10 by KtHospiceRNCMI work for a Home Health agency and they do not take out my federal taxes. They do take out for state though. I do not get a 1099, I do get a W2 and under the federal section is just says $0.00
You can make estimated tax payments if you prefer not to pay it all at tax time I believe. I'm sure IRS.gov has a form you can use to submit payments and when they accept them.
??? Hope that helps
- 0Aug 5, '10 by juliaannWhen my husband was a contract employee we paid quarterly on his taxes owed. It was a pain and way more expensive than we estimated. We called our state's IRS office and they sent us all the forms we needed to set up quarterly payments.
You should contact your employer's HR person to go over this again, get all the facts you can from them, and then call the IRS or an accountant and figure out the rest of what you need to be doing.
- 0Aug 5, '10 by roser13"You can make estimated tax payments if you prefer not to pay it all at tax time I believe. I'm sure IRS.gov has a form you can use to submit payments and when they accept them."
I don't believe that making quarterly payments is an "option." I believe it is a requirement, with a penalty for not keeping up with pre-payments.
OP, I hope that you are taking note of all of the posters' responses, particularly the ones that have experience in this area. And most especially the poster who mentioned that her pay was effectively 50% less due to the various taxes required to be paid as a contract employee.
As I said before, this may cause you to re-think your employment with the LTC.
- 0Aug 5, '10 by SimonJesterQuote from 2ndwindI have called the IRS help line and I found they are very helpful and friendly. I would not be scared to call them and ask for advice. Iím sure they will tell you exactly what you need to do and where to get the forms.But don't call your local IRS (are ya nuts?)
However I agree with everyone else, look for another job, itís not worth the hassleÖ
- 0Aug 5, '10 by msn10strongly suggest that you find another employer that makes you an emolyee and handles your tax withholding. The situation you are in now can become a real nightmare (been there, done that).However I agree with everyone else, look for another job, it’s not worth the hassle…
Other things to think about:
Who is paying malpractice/liability?
Who is responsible if one of your co-workers does something wrong and you follow them?
Oh, forget it...too many questions.
Hightail out of there!!!
- 0Aug 6, '10 by newboyThanks everyone for all the helpful information and advice . I'll contact my state's IRS and seek out an accountant; I'll make quarterly payments.
Also to the poster who said that new grads shouldn't work for agencies. I got 3 weeks orientation and I work full-time, 7-3 shift. I know some nursing homes only orient for 4 days, so I'm glad I got what i got as an agency nurse.
- 0Aug 6, '10 by future_looks_goodQuote from newboyWhat is the name of the agency that is hiring new graduate nurses?So I'm a new grad who just started in LTC via agency (and i absolutely love it!! lol). The agency will not be taking taxes from my pay, and I asked them what I should do so I won't end up owing a bunch, and they simply said "I don't know." So I guess I'm on "self-employed" status, and no one seems to know what to do or how I would calculate the amount of taxes that would be taken out from my pay. I WILL be responsible for taxes and I'm trying to get this controlled now, so... help?? lol..
P.S. This is my first real job ever so I'm new to all this W-4, W-2 and all that other "W" stuff lol, but I'm figuring it out.