[K2008]

Hello, My daughter is in college and recently started a second part time job. The employer informed her that she is only paying her salary and nothing else. What status would that put my daughter in and what is she responsible for? I am not sure if this is a good arrangement for my daughter?

[morgaine300]

If it's a "salary," then the company darn well is responsible for dealing with the taxes and such.

But the statement that they're paying "only her salary and nothing else" I think is confusing. At first I thought you meant they weren't paying benefits or reimbursing mileage or whatever. But I'm suspecting you're meaning they aren't taking out and paying any taxes for her, and not paying any of the extra stuff like unemployment and disability insurance, etc. Is that what you're meaning? If so, I'll just repeat that if it's a "salary" then they most definitely are responsible for this. Otherwise it wouldn't be a salary.

The IRS gets pretty picky about what's an employee and who's a contractor or self-employed. If this is just your normal old every-day sort of job, then she's most likely an employee.

Here's a page on the IRS site about it:
Independent Contractor (Self-Employed) or Employee?

I would check first whether you think she is for sure supposed to be an employee, and in reality, she needs to speak to the company about it and get classified correctly. It's not uncommon for companies to try to pull this off. I don't really mind screwing over the IRS (I didn't say that!), but it screws over the employee as well and that ticks me off. If they won't budge, check out the section on the new Form 8919. Didn't know they had created that. They should have done that a long time ago.