If your company pays someone with cash do they have to report it Do you have to report their name to count it?

Answer 1

Under the laws of the IRS, if a company pays someone as an individual contractor, they should be issuing a 1099 Form to the person a copy of which goes to the IRS. If they are an employee, both parties should be reporting it as part of the compensation package. If the money is reimbursement for business expenses, there is no income to report for the individual, but the company needs to record it as a business expense and have records that meet audit requirements. As the above suggests, being paid in cash, rather than say by a check or automatic bank deposit, isn't the issue here. If you are an employee, meaning you receive a W-2 at year end and the employer has therefore withheld income tax and other things (unemployment,FICA, etc.) and paid that over to the agencies on your behalf, even if he paid you in cash, you would report the information on the W-2 as your income and receive credit, frequently refunds for the $ paid over on your behalf. Certain payments (like half of FICA and UI), are paid entirely by the employer in these cases. If you are an independent contractor, (which is essentially the same as runing your own business and having the company as a customer), the Company should send you a 1099 reporting how much they paid you. You then file taxes based on this. You even should be paying estimated taxes as you go through the year. You get to deduct the expenses of running your business on your return. You may have to pay "self employment taxes". Of course, you get the benefit of things like social security and other coverages for this. Yes you have to report any income you made through the year. (Whether you receive a 1099 or not). It is illegal for you not to. It would be foolish for a company to hide their payroll expense, as it is illegal and maybe more importantly, a tax deductible benefit item for them! No, you probably don't have to reveal their name if you consider it part of your business revenues on your return - just like any business doesn't have to report who their customer was, just essentially how much they got paid.