<prompt> Human: I recently moved to California, USA to start working in December 2014 -- that first month being paid as a 1099 employee to the tune of around 7000. With no money being withheld for tax SS etc.If no return was filed this year for that amount of money, are there any penalties that I should expect, or does this fall under the exemption amounts of the year?  <response>: Yes, there will be penalties and you will owe money. You need to pay FICA and possibly federalstate income tax. 