Hello, I wasn't self-employed. I was employed under my boss, but he ended up giving me 1099-MISC so that now it looks as if I have my own business.

[Zbucklyo · Accepted solution]

That is how the IRS considers income reported on a 1099-misc, Box 7 - as self-employed, or business income.  Your boss is trying to push the burden of the employer social security and medicare taxes on you.  If you want to contest this, talk to your boss first, but you can also fill out form SS-8, which is a redetermination of worker status form.  This could complicate the relationship between you and your boss if the IRS determines you should be treated as an employee.

[jiyun-a-ouh]

Thank you for your response.  My boss is known to be doing this to other employees as well.  Which form can I request from my boss? (W-2)?  If he does not take any actions, will the SS-8 form help sort this issue out?

[Zbucklyo]

Yes, as an employee you would be issued a W-2, but then he would have had to pay those payroll taxes.  The issue you run into is that you will alienate the boss and he will fire you.  But if you fill out the SS-8, the IRS will send a letter to your boss to help determine if you should be treated as an employee.  There are certain rules that determine your employment status - often scammy bosses try to pull this trick and classify someone who should be treated as an employee as self-employed.  Be prepared to find another job if you go this route.

[jiyun-a-ouh]

I already left the job, and he is known to be shady when it comes to finances, so I don't mind going this proper route.  Since i received 1099, I already paid all the estimated federal and states taxes too on my own last year as well.  What is your recommendation - ask the boss for a new W-2?

[Zbucklyo]

He can't issue a W-2 at this point, because he did not withhold employee or employer payroll taxes.  Go ahead and file as self-employed, pay the taxes, then fill out the SS-8 and send it in.  Read about it here:

<a rel="nofollow" target="_blank" href="https://www.irs.gov/uac/about-form-ss8">https://www.irs.gov/uac/about-form-ss8</a>