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I’ve been an employee for a little over a year at a company and received a 1099-MISC form. I’m trying to do my taxes but says I’m self employed which I’m not. I would receive my pa

 
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DDollar
Expert Alumni

I’ve been an employee for a little over a year at a company and received a 1099-MISC form. I’m trying to do my taxes but says I’m self employed which I’m not. I would receive my pa

If the company you are working for was treating you as an employee, they would be withholding federal and state (if applicable) income taxes, and Social Security and Medicare taxes from your paychecks.  In addition, they would have issued you a Form W-2.  The fact that they gave you a Form 1099 indicates that they are treating you as an independent contractor, which is just another way of saying they are treating you as if you are self-employed.

By classifying a worker as an independent contractor instead of employee, an employer avoids the following expenses: Employer's share of Social Security and Medicare taxes. Overtime pay. Employee benefits, including vacation, holiday, and sick pay.


If you think you should be treated as an employee, but have been classified as an independent contractor by your employer, you can talk to your employer to see if it will review your classification and reclassify you as an employee. Explain that you think you've been wrongly classified as an independent contractor. At the very least, you should get an explanation as to why they think you are a contractor, instead of an employee.

If trying to talk to your employer doesn't work, you can contact the IRS. Workers who believe they have been misclassified as independent contractors may request that the IRS determine their employment status for federal tax purposes by filing form IRS Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. There is no fee for filing.

Or you can file as self-employed, and pay self-employment taxes as well as federal and state income tax.

For more information, see https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-o...






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2 Replies
BobB7
New Member

I’ve been an employee for a little over a year at a company and received a 1099-MISC form. I’m trying to do my taxes but says I’m self employed which I’m not. I would receive my pa

A significant clue would have been whether they were taking taxes out of your pay.
DDollar
Expert Alumni

I’ve been an employee for a little over a year at a company and received a 1099-MISC form. I’m trying to do my taxes but says I’m self employed which I’m not. I would receive my pa

If the company you are working for was treating you as an employee, they would be withholding federal and state (if applicable) income taxes, and Social Security and Medicare taxes from your paychecks.  In addition, they would have issued you a Form W-2.  The fact that they gave you a Form 1099 indicates that they are treating you as an independent contractor, which is just another way of saying they are treating you as if you are self-employed.

By classifying a worker as an independent contractor instead of employee, an employer avoids the following expenses: Employer's share of Social Security and Medicare taxes. Overtime pay. Employee benefits, including vacation, holiday, and sick pay.


If you think you should be treated as an employee, but have been classified as an independent contractor by your employer, you can talk to your employer to see if it will review your classification and reclassify you as an employee. Explain that you think you've been wrongly classified as an independent contractor. At the very least, you should get an explanation as to why they think you are a contractor, instead of an employee.

If trying to talk to your employer doesn't work, you can contact the IRS. Workers who believe they have been misclassified as independent contractors may request that the IRS determine their employment status for federal tax purposes by filing form IRS Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. There is no fee for filing.

Or you can file as self-employed, and pay self-employment taxes as well as federal and state income tax.

For more information, see https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-o...






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