- Treated as an employee for Social Security/Medicare tax purposes
- Treated as an independent contractor for income tax purposes.
My spouse is a speech pathologist in private practice. She is compensated as an independent contractor (1099 income) from one source and as a sole proprietor (W2 income) from another. The PPP rules appear to be pushing the 1099 and W2 into the same Sch C. However the W2 income does NOT have the Statutory Employee checkbox checked so the Sch C cant match the PPP Worksheets. So in past years the W2 was not 'combined' on the Schedule C.
1 - is a speech pathologist in private practice considered a "Statutory Employee"?
2 - if so, is a corrected W2 required?
3 - if a corrected W2 is required does that change anything from an employer/sole proprietor arrangement...as in does it cost the employer anything to do so or change the compensation platform in any way? We are already having Fed tax, social security tax, medical tax and state taxes withheld on that W2.
Why did you tack on a PPP question to this thread ?
The PPP is for businesses that have employees ... so your wife's Sch C business doesn't qualify for that loan since she doesn't have employees ... she is NOT employed by her business statutory or otherwise .
What she may be eligible for is UNEMPLOYMENT benefits ... the SE are also allowed to collect it ... check with your state's site.
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