Did you mean to suggest in your editorial of Jan. 21 (“Congress should scrap 1099 rule in health care law”) that it is OK for a business to pay someone for work performed and not have it reported as taxable income?

If small businesses aren’t required to report amounts of $600 or more that they pay someone for doing a job, then the worker is probably not going to include it when income tax forms are filed.

And, the employer will have to lie on his or hers by listing it as some other expense. Preparing these forms is basically a no-brainer and not a major expense.

As a former trained tax preparer, I know first-hand that many people work for cash (under the table) and do not report it. Many others, especially tradespeople, work as independent sub-contractors so they can deduct all expenses, including their truck or van, which is really just a non-deductible commute if most of their income is from a single business.

If that’s the case, they should be on the payroll and that business should be paying their share of payroll taxes and cover them with worker’s comp.

Lobster fishermen get a tax form from the buyer, and they have to give a 1099 to a sternman. This was required after years of giving their helpers a share of the catch, which could be sold anywhere, the money pocketed and never taxed.

Everyone complains about paying taxes — and then complains about the poor snow removal, potholes, lack of police protection, etc.

You can’t have it both ways. We all have to pay our fair share.

 


Only subscribers are eligible to post comments. Please subscribe or login first for digital access. Here’s why.

Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.