Question

Based on the information given below, if you were Jim Smith would you accept the job? If your answer is yes, give reasons in detail why you would. If your answer is no, give reasons in detail why you would not. Also, explain what type of liability is payroll. Jim Smith, a college student, is looking for a summer job. Jim’s neighbor has a cousin who owns a landscaping company and is looking for help. The name of the company is A-1 Landscaping Company. Jim decides to meet with the owner, Robert Jones. Mr. Jones offers the job to Jim Smith and is paying him $21 dollars an hour and will be working at least 40 hours a week. There might be times when he will be working over 40 hours and will be paid time and a half over 40 hours. The owner states he will be paying Jim in cash at the end of each work week. Since he is paying in cash, Robert Jones, the owner mentions he will not be issuing him a W-2 or 1099 for his earnings because it is not necessary when cash is involved.

Answer 1

False . It is important to issue w-2 or 1099 as the case maybe even it is paid in cash .If your employer did not take taxes out of your wage cash payments, it’s possible he’s trying to escape his tax obligations by paying you “under the table.” Specifically, the lack of paper trail makes it easier for him not to report those wages and pay his contributions on the withholding. The IRS takes this matter seriously and encourages employees to report employers who fail to withhold and pay taxes. Such employers can face civil and criminal penalties. thus he should not accept the job