Gig worker w/ Solo 401k - Company did not update to use my EIN I submitted to them

[mrtk31]

I created an EIN ss-4 and submitted this document to have all of my tax information updated at all the companies I contract for.  4 of them updated it perfectly how I just received a 1099 from one of them called PointPickup that shows they are still using my social security number.

I have multiple emails to them telling them to update this and chat conversations that I have screenshots of.

What should I do so that I don't run into problems as I need all of my income coming to my EIN so that I can contribute the maximum amount to my solo 401k.  

It is my understanding after talking with TD Ameritrade where my solo 401k is, that money I was 1099'd for with my social will not count as earned income in the solo 401k calculation.

thanks for all the help

[DianeW777]

You can request that the company who issued you the 1099 to reissue with the correct EIN vs SSN.  This would be the best scenario.  

If they are unwilling to make the change for some reason, then you can use the nominee action below which should suffice for TD Ameritrade.

Nominee returns. 

Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received).  You must also furnish a Form 1099 to each of the other owners. 

File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)

• On each new Form 1099, list yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself as the nominee filer, not the original payer.  The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.

The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here: 

• Form 1096-Transmittal 
• Form 1099-NEC 2021

This will allow you to enter zero on your personal return and include the income on your business return. Keep all records in your file.

[Critter-3]

It is my understanding after talking with TD Ameritrade where my solo 401k is, that money I was 1099'd for with my social will not count as earned income in the solo 401k calculation.

Why not ?  All your income goes on the Sch C no matter which number is on the 1099 ... the broker should be looking at the profit on the Sch C only and not where the money came from.  How are they even seeing that form since it was mailed to you ?    

[mrtk31]

Great point and you are right they will not see the form or the amounts.

I confused this because TD Amertrade needed the EIN in order to open the Solo 401k account.