IRS Tax Question - Any experts here?

[rickon66]

I have been working part time for a marketing company and recently realized that they have a strange way of computing pay. The pay rate that they quote me varies by job between $10 and $17 per hour. When I look at the detailed breakdown of the pay paperwork they list my pay as minium wage and the rest as "mileage" pay. So if my pay rate for a particular job is $10, it is listed as hourly rate $7.25 and mileage pay $2.75. If my pay for another job is $15 it still lists my hourly rate as $7.25 and mileage as $7.75. This is without regard as to any actual miles that I drive. This seems to me like this is just a way to avoid paying social security and other tax. Does anyone know if this is legal?

 

[CRXican]

http://forums.anandtech.com/showthread.php?t=2033811

 

[goog40]

Totally illegal.

 

[rickon66]

I asked again on the 2009 Tax thread - no need to reply to this one.
Thanks

 

[Bignate603]

Yeah, that's not right. I'm wondering if their creative accounting is going to put you at risk of an audit.

 

[dquan97]

[opens up box of surgical gloves]
Time for an audit!!!

<- govt auditor

 

[oogabooga]

[opens up box of surgical gloves]
Time for an audit!!!

<- govt auditor

I know it's not addressed to me and I don't have creative practices like that but that thought still made me uncomfortable

 

[dquan97]

I know it's not addressed to me and I don't have creative practices like that but that thought still made me uncomfortable

I guarantee a worry-free tax year for 3 easy payments of $99 to my paypal acct