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kgdunaway
New Member

I am paid weekly, have set hours, and even a work uniform and insurance. Yet I got a 1099-misc, should I fight this ? Is it even worth it?

 
5 Replies

I am paid weekly, have set hours, and even a work uniform and insurance. Yet I got a 1099-misc, should I fight this ? Is it even worth it?

If they didn't take any taxes out of your "paycheck" during the year then you can fight it since you will have to pay the employer's share of the FICA taxes = 7.65%.   By paying you as an independent contractor instead of an employee not only do they escape the employer's portion of the FICA taxes they also don't have to cover you for unemployment or worker comp ... it is illegal and you should report them.   However do you want to keep the job ?   If you report them expect them to fire you.

I am paid weekly, have set hours, and even a work uniform and insurance. Yet I got a 1099-misc, should I fight this ? Is it even worth it?

One tidbit if you don't mind getting fired—if they are found by IRS ruling to have intentionally misclassified you, they can't make you pay the employee half of social security and mediare tax.  They would issue a W-2, you can file an amended tax return to get your self-employment tax back, and they have to pay both the employer and employee half of social security and medicare, they can't ask you to pay the half you would have paid if you were properly classified from the beginning.  That's considered part of their penalty.  So a little bonus cash possibly.
kgdunaway
New Member

I am paid weekly, have set hours, and even a work uniform and insurance. Yet I got a 1099-misc, should I fight this ? Is it even worth it?

In short I am in a financial mess via working for this person as a non-employee. I can afford to take a wrong step at this point. I am not concerned about losing my job as I have been working out of my house to cover things. I don't want the it's coming after me for more than what I'm responsible for.

I am paid weekly, have set hours, and even a work uniform and insurance. Yet I got a 1099-misc, should I fight this ? Is it even worth it?

 That's up to you.  You are paying both halves of social security and medicare, and not getting statutory benefits like unemployment insurance.  On the other hand, they might want to pay you a lower salary if they classified you as an employee.

By the way, they can't legally provide you with tax-free health insurance if you are not an employee—anything they provide of value, including paid or partially paid insurance, must be included on the 1099-MISC as part of your taxable compensation. 

It sounds like you know that based on the rules, you should probably be an employee.https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-o...

Anonymous
Not applicable

I am paid weekly, have set hours, and even a work uniform and insurance. Yet I got a 1099-misc, should I fight this ? Is it even worth it?

check this link, it will enable you to determine your true status

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-o...

you can file ss-8 to let the IRS determine your status

https://www.irs.gov/pub/irs-pdf/fss8.pdf

here is a link to a 20 point checklist.  read what it says at the top

https://www.walthall.com/wp-content/uploads/2014/09/IRS-Indep-Contr-20-Point-Checklist.pdf

Misclassified Workers Can File Social Security Tax Form

Workers who believe they have been improperly classified as independent contractors by an employer can use Form 8919, Uncollected Social Security and Medicare Tax on Wages to figure and report the employee’s share of uncollected Social Security and Medicare taxes due on their compensation.



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