If the employer arbitrarily decided to give you a 1099-MISC instead of a W-2 to avoid paying payroll taxes, this would be illegal and you can contest the employer’s action through the IRS.
From this TurboTax FAQ:
“A business may hire a worker as an independent contractor, but the worker may be classified as a paid employee by the Internal Revenue Service, depending on how their position is structured. An independent contractor generally decides how and when to complete their workload, so if an employer reserves the right to control that, they’re likely an employee. A worker who uses tools and equipment owned by the employer may be considered an employee, since a contractor usually has their own equipment”
If you disagree with the employer, you will need to do the following:
File form SS-8 with the IRS
Wait for a determination from the IRS confirming employee status.
After receiving the determination (or before the April or extended October deadline if a reply is not received in time) file form 8919 with your tax return
- Pay your portion of social security and medicare taxes that should have been withheld by your employer if they would have paid you with a W-2. (The amount is 7.65% of the gross amount).
