The company and the guy are required to report, to you and the IRS, all payments if they total $600 or more for the year. It makes no difference if they "write-off" or not. If they do not report it on form 1099MISC and form 1096 they could be fined $50 and could be held responsible for and pay the 15.3% in addition to you paying the 15.3%.

You are required to report your total income regardless of the amount and wheather they reported it or not. If you under report your income by 25% or more it is tax fraud and you could get lucky and share a cell with Martha Stewart.

As they did not withhold the 15.3% social security taxes, then you have to pay it with form 1040SE attached to your 1040 tax return. no exception. The government has to have the 15.3% so they can give me my retirement check. Oh..no, yes this is where the government gets the money for social security and medicare for you to live in your old age.