Adjusting my Fiance's status, but I got a new job that only pays cash!

[Boiler 45,536]

Probably best to have a chat with your CPA and make sure it is all set up properly.

[AshMarty 360]

1 hour ago, databit said:

You are probably making more money because taxes, SS, Workers Comp, and disability are not being taken out of your salary. This can hurt you later, and it leaves you without protection should something bad happen on the job. Of course, you must know that you should be paying quarterly estimated taxes every 3 months as self-employed. Otherwise, you will get an IRS penalty when you file. And realize that the people who are paying you should be planning on issuing you a W-2 at the end of the year. Ask them now if they will. If they refuse or make some excuse, they are falsifying their tax return, and they would never tell immigration that they employ you, either. It's really better for you to work through an agency.

 

Read this: https://www.hrblock.com/get-answers/taxes/taxes-and-penalties/w-2-or-1099-for-babysitter-taxes-10522

 

I would def take this advice. Self employment taxes are much higher than working for an employer, not to mention you don't have retirement fund that your employer is setting up for you.

 

I started a small business a couple of years ago and you will want to make sure file for a tax ID, you file quarterly, know and track your write-offs immediately, and are putting enough money away on the side to pay the state and federal self employment tax rate. Be smart.

[sweetadams 138]

2 hours ago, Sedona and Thomas said:

Okay cool, that makes me feel a lot better. Its just hard because after my injury i became a nanny, which makes great money, but there is no way to prove it! So just have to figure out how to prove that I am at least making money and have been providing everything financially for my fiance. And we live in California, so its definitely not easy to be over the poverty line here!

 

Do you have any idea where I can start recording my cash payments, or the best way to go about this from here?

Use google to find simple basic accounting software, they even come in app that keeps record of all your transactions. As suggested, create a tax ID, its available online, use your previous year transcript that is also available online.

And you don't have to rush to submit AOS if you don't meet all the requirement. Though you might do so and get some RFE that will give you time.

 

My advice is my own thought.

[David & Diana R 1,005]

3 hours ago, Sedona and Thomas said:

Hi Everyone,

 

My fiance and I just got married a few weeks ago. We just started researching everything we have to get done for his adjustment of status. But there is a problem.  A month before my fiance arrived in the U.S I sustained an injury at work and had to leave. Once he arrived I found a new full time job as a Nanny, making better money than my last job. The only problem is that Its technically not a business, and I am only paid in cash. Originally my father was our financial sponsor,  but I am worried about submitting the forms with no letter from employer, or any real pay stubs.

 

Any ideas help

 

Thank you!! 

It's illegal for almost anyone in the US to pay an employee cash.  There are just a few instances where this is legal and a nanny is not one of them.  Your "employer" must pay your social security (7 1/2 % of your pay), and some other taxes even if paying you cash.  You are working illegally if they are not and they are ripping you off.  You would have to form a business, get a tax license, pay federal and state taxes, etc...  I would suggest getting a "real job" to avoid the long term problems you are currently bringing upon yourself.

[David & Diana R 1,005]

3 hours ago, Sedona and Thomas said:

Okay that makes sense. Its just unfortunate because I am actually making more money now, but have not been recording it. Its always nerve wracking when something comes up that could jeopardize your chances. I have always had my father as our CO-Sponsor because I am younger and previously did not make over the poverty line, and I still do not. 

 

But it is okay if I submit my tax returns from my previous job?

He's already in the U.S, we got married last month. 

I'd be willing to bet you are not making more money now.  At least not legally.  This is where so many younger people make a disastrous mistake that affects them when it's time to retire.  If you don't pay into social security you won't get ANY.  If you are working for cash and "not recording it" you are not ahead.  You are also in violation of Federal tax law.  In the end you will never be able to retire.  And what about a 401k, a pension, savings?  Not to mention ObamaCare.  You are going to be paying the annual fine, oh excuse me the tax fee when you do fail to have medical insurance.  People working for CASH also cost me money because you are not paying your fair share.  Your "employer" will hopefully be caught and fined.  Only problem is you will also be caught.  Think about your future.  You CAN make more than the poverty line if you work at it.  I'm 60 years old and worked 58 hours last week.  But that's just me and my generation maybe.  God Bless 

[caliliving 606]

3 hours ago, Sedona and Thomas said:

Okay cool, that makes me feel a lot better. Its just hard because after my injury i became a nanny, which makes great money, but there is no way to prove it! So just have to figure out how to prove that I am at least making money and have been providing everything financially for my fiance. And we live in California, so its definitely not easy to be over the poverty line here!

 

Do you have any idea where I can start recording my cash payments, or the best way to go about this from here?

if your dad is the cosponsor your income doesnt matter! my husband did odd jobs and i just put down like construction or whatever and his dad was our sponsor and no questions were asked about anything!  if your dad can cosponsor just put down nanny and they wont care ab out your income AT ALL!

[janet3 1,170]

3 hours ago, David & Zoila said:

I'd be willing to bet you are not making more money now.  At least not legally.  This is where so many younger people make a disastrous mistake that affects them when it's time to retire.  If you don't pay into social security you won't get ANY.  If you are working for cash and "not recording it" you are not ahead.  You are also in violation of Federal tax law.  In the end you will never be able to retire.  And what about a 401k, a pension, savings?  Not to mention ObamaCare.  You are going to be paying the annual fine, oh excuse me the tax fee when you do fail to have medical insurance.  People working for CASH also cost me money because you are not paying your fair share.  Your "employer" will hopefully be caught and fined.  Only problem is you will also be caught.  Think about your future.  You CAN make more than the poverty line if you work at it.  I'm 60 years old and worked 58 hours last week.  But that's just me and my generation maybe.  God Bless 

And what about all of the contract laborers that receive 1099's instead of W2s? Like carpenters? Plumbers? Field laborers?

Let's be realistic shall we? I started working at 15  (for my father....a CPA) and I am now 45....do you actually think you are going to talk a 20 something into worrying about the 401K?

And they do not cost you anything.....there's a whole world out there that lives off cash  (and has for eternity).

As for Social Security....you only get out what you put in....

[janet3 1,170]

Will your current employer write a letter regarding payment and/or your agreement for payment?

[Suss&Camm 2,213]

54 minutes ago, janet3 said:

And what about all of the contract laborers that receive 1099's instead of W2s? Like carpenters? Plumbers? Field laborers?

Let's be realistic shall we? I started working at 15  (for my father....a CPA) and I am now 45....do you actually think you are going to talk a 20 something into worrying about the 401K?

And they do not cost you anything.....there's a whole world out there that lives off cash  (and has for eternity).

As for Social Security....you only get out what you put in....

1099's are for contractors. There are rules on what circumstances are considered being a contractor and what is considered being an employee. Employers have to legally supply an employee with a W2. 

That ppl have "been doing it" - only means they weren't caught, not that it's a good idea.

I'd say when I was 20 was exactly when I started thinking about saving for retirement. It's sound advise - which should be given regardless if the person will receive it or not. At least if they have received it they have the option of choosing not to listen. 

[janet3 1,170]

4 hours ago, David & Zoila said:

It's illegal for almost anyone in the US to pay an employee cash.  There are just a few instances where this is legal and a nanny is not one of them.  Your "employer" must pay your social security (7 1/2 % of your pay), and some other taxes even if paying you cash.  You are working illegally if they are not and they are ripping you off.  You would have to form a business, get a tax license, pay federal and state taxes, etc...  I would suggest getting a "real job" to avoid the long term problems you are currently bringing upon yourself.

What about waiters? Waitresses? Paying cash does not constitute a "real" job. Of course someone can be paid cash for services rendered. As long as the income is reported to the IRS they do not care how you received it  (in fact, there is a box about receiving money through illegal means).....

[Suss&Camm 2,213]

3 minutes ago, janet3 said:

What about waiters? Waitresses? Paying cash does not constitute a "real" job. Of course someone can be paid cash for services rendered. As long as the income is reported to the IRS they do not care how you received it  (in fact, there is a box about receiving money through illegal means).....

Agreed ofc you can be paid cash. It's the under the table part and not reporting and paying taxes the poses the problem

Edited August 9, 2017 by Suss&Camm

[janet3 1,170]

2 minutes ago, Suss&Camm said:

1099's are for contractors. There are rules on what circumstances are considered being a contractor and what is considered being an employee. Employers have to legally supply an employee with a W2. 

That ppl have "been doing it" - only means they weren't caught, not that it's a good idea.

I'd say when I was 20 was exactly when I started thinking about saving for retirement. It's sound advise - which should be given regardless if the person will receive it or not. At least if they have received it they have the option of choosing not to listen. 

I agree completely.  In hindsight....I should have started saving for retirement when I was in my 20s....ehhh...life...travels, good times, fast cars....it's the past at this point. I had a lot of irresponsible fun....you are a better person than I.

But....the fact of the matter is....a nanny can be contacted help....as can a carpenter....landscaper....housekeeper....

5 minutes ago, Suss&Camm said:

Agreed ofc you can be paid cash. It's the under the table part and not reporting and paying taxes the poses the problem

Agree completely 

[AshMarty 360]

From personal experience it would be wise seeing a small business account prior to getting too far into this job.

 

This is what I did prior to starting to seeing people in my small business. You have to be organized from the very beginning or else taxes and not tracking write offs will hurt.

 

Also I am 33 and my husband is 32, we both bought our first houses in our 20s and were both planning our retirements in our 20s, So many of these 20 year old statements aren't always true  But investing in your retirement is always good to learn about think about, it's taken a lot of reading up on and awareness to make me realize how important it is. 

Edited August 9, 2017 by AshMarty

[Suss&Camm 2,213]

2 minutes ago, janet3 said:

I agree completely.  In hindsight....I should have started saving for retirement when I was in my 20s....ehhh...life...travels, good times, fast cars....it's the past at this point. I had a lot of irresponsible fun....you are a better person than I.

But....the fact of the matter is....a nanny can be contacted help....as can a carpenter....landscaper....housekeeper....

Agree completely 

Can be - but likely not

https://www.paychex.com/articles/payroll-taxes/irs-guidelines-on-independent-contractor-or-employee

The contains link to irs but summarizes three main points:

Behavioral: Does the company control or have the right to control what the worker does and how the worker does their job?

Financial: Are the business aspects of the worker’s job controlled by the payer? (These include things like how the worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

Type of Relationship: Are there written contracts or employee-type benefits (i.e., contracts or employee-type benefits (i.e., pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?”

[sereques 7]

15 hours ago, Sedona and Thomas said:

Hi Everyone,

 

My fiance and I just got married a few weeks ago. We just started researching everything we have to get done for his adjustment of status. But there is a problem.  A month before my fiance arrived in the U.S I sustained an injury at work and had to leave. Once he arrived I found a new full time job as a Nanny, making better money than my last job. The only problem is that Its technically not a business, and I am only paid in cash. Originally my father was our financial sponsor,  but I am worried about submitting the forms with no letter from employer, or any real pay stubs.

 

Any ideas help

 

Thank you!! 

 

 

Bank statements and then make sure you file taxes at the end of the year. You can also get a notarized letter from the person you are working for stating how much they pay you and length of you employment.