1099 NEC

[ryan15]

My son is an employee of a full-truckload logistics company in sales.  He receives a W-2 but they pay him sales commissions and report them on a 1099-NEC.  Is this legal?  He doesnt have his own business but yet has to file a schedule C now and pay self employment taxes?   How does this work?

[SweetieJean]

We cannot answer legal questions here, so he should consult an attorney.  But see this:

Independent Contractor (Self-Employed) or Employee? | Internal Revenue Service (irs.gov)

[TomD8]

Normally an employer would issue a 1099-NEC to an employee only for work done unrelated to their main job.  Example: a company hires one of their accountants to come in on weekends and paint the office.

If your son believes his employer has misclassified him as an independent contractor rather than an employee, he can submit Form SS-8 to the IRS and ask them to make a determination.  Here's a link to that form:

Form SS-8 (Rev. May 2014) (irs.gov)