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Level 2
posted Nov 16, 2022 9:21:00 AM

1099 Employee

What does it mean to be a 1099 employee and how will this affect my taxes and refund if I’m also a full time employee from another company?

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2 Replies
Level 15
Nov 16, 2022 9:23:12 AM
Expert Alumni
Nov 16, 2022 9:28:22 AM

1099 employee are commonly referred to as independent contractors, which comes with the tax responsibility of paying both income tax and self-employment tax on net income from self-employment earnings.  Income tax is dependent on your prevailing tax rate from all sources of income. Self-employment tax, which is FICA and Medicare for the self employed is taxed at 15.3%,