I was hired by a church and filled out a
W-4
about a year and a half-ago, as an employee. But now, when filing taxes for 2010 I realized that I am considered self-employed. But I was never notified of this switch in employment status. So I haven't been paying SS tax or Medicare tax for the last year and now owe a large sum of money. What is the responsibility of the employer in notifying employees of this switch in status? And are there payment options to pay this large sum of money, instead of all at once?
I think you both have responsibilty to define the relationship. This is a contract question and it depends on what was agreed to by the parties and what documentation you have to prove that you are considered an employee. I guess you got a vendor check and not a payroll check. Maybe you should have noticed that sooner. But if you can prove you were hired as an employee and they did not pay you as an employee, then they are responsible for breaching your agreement. Your ability to get reimbursed for this depends on your negotiating skills, and the evidence you present to church elders and how dear this job is to you. The options are to file for an installment agreement, form 9465 with your tax return. Also, see a tax preparer who knows how the clergy is taxes because they have special allowances.
Disclaimer of California Attorney
Although the above response is believed to be accurate, it should not be relied upon as any type of legal advice because the information provided is incomplete. It is intended to educate the reader and a more definite answer should be based on a consultation with a lawyer. No attorney client relation is formed with me without a written contract.
Good Luck starts with a strategy and a plan.
Robert J. Suhajda, MS,CPA
Attorney-At-Law
17721 Norwalk Blvd. #43
Artesia, CA 90701
562-924-8922
Former financial auditor and controller. Admitted to US Tax Court, Income Tax, IRS representation, Fiduciary income tax returns, Estate and Gift tax returns,
Homeowner Association Strategist.
As a strategist, I analyze and integrate the operations, reserve study, budget, and financial statements into a unitary plan for 1 – 5 years, utilizing my experience as
a former treasurer and vice president of a homeowners' association and corporate
controller and auditor, to minimize homeowner association dues.
Disclaimer of California Attorney
Although the above response is believed to be accurate, it should not be relied upon as any type of legal advice because the information provided is incomplete. It is intended to educate the reader and a more definite answer should be based on a consultation with a lawyer. No attorney client relation is formed with me without a written contract.
Good Luck starts with a strategy and a plan.
Robert J. Suhajda, MS,CPA
Attorney-At-Law
17721 Norwalk Blvd. #43
Artesia, CA 90701
562-924-8922
Former financial auditor and controller. Admitted to US Tax Court, Income Tax, IRS representation, Fiduciary income tax returns, Estate and Gift tax returns,
Homeowner Association Strategist.
As a strategist, I analyze and integrate the operations, reserve study, budget, and financial statements into a unitary plan for 1 – 5 years, utilizing my experience as
a former treasurer and vice president of a homeowners' association and corporate
controller and auditor, to minimize homeowner association dues.
Your status as an employee v. independent contractor can be a complex determination. Just because your church says you are an independent contractor does not mean that this is the case. Check with an employment lawyer in your local area to determine what your rights are and whether you are an employee or independent contractor.
Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.
