Can they issue a 1099 ... sure. Is it right ... probably not. What can you do about it ... file it as is should have been listed on a W-2 ... the TT program will walk you thru this in the 1099 entry section. You will also need to paper file an SS-8 form with the IRS to report this "employer". Or you can simply accept that part of your income is on the 1099 if you don't want to make a fuss. If they did this to a lot of employees then you all need to report them so they learn a lesson.
