[USER]

My husband is a retired sergeant and receives a pension. He’ll be starting a new job in the coming weeks as a chauffeur for a private driving company.

They informed him today he will be getting paid through Zelle.

Is this a typical form of payment? Any information regarding taxes, SS etc… when being paid through Zelle would be appreciated.

[John]

If he’s a 1099 contractor, make sure he understands how taxes work. He’ll be paying bunches of it out of his paycheck.

[Janice]

It can be legitimate. Zelle offers a payroll option, but it charges a fee for the service to the company. Make sure that taxes are being calculated and deducted correctly.

Make sure you receive a copy of the paystub or a payment portal to login to to access your paystubs.

Verify they are paying your husband as a W2 employee and not a 1099 employee, as that is sometimes misused and can create additional tax liability for you.

[Marcos]

Shouldn’t matter. He’ll get a 1099 at the end of the year. I’m a leo and sometimes work details that pay literal cash but I’ll eventually get a 1099.

[Carl]

The best thing to do ould be to contact the employer and verify that they are taking out taxes and SS. Otherwise, not quite sure that getting paid by check, direct deposit, zelle, etc. matters…

[Stacey]

I am paid through Zelle but I am a 1099 independent contractor.
I am emailed the equivalent of a pay stub each pay.

I think just some follow up questions for him to verify – is he an employee? Will he get a stub?

Etc…

[Tara]

If they are considering him a 1099, make sure he is properly insured as an independent contractor. I can’t imagine how it would be legal for them to pay as an independent contractor if they are providing the vehicle and he cannot use it for other work.

Meaning they provide the jobs and the vehicle.

That’s the definition of a W2 employee. They might not realize the legality.

[Author]

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