I work in a mall and because my job is contracted through the mall, they give 1099s instead of 1040s. I am not self employed and do indeed work for a company, the company itself is independent. Because of having a 1099, I see I also have to pay an SE tax along with my social security, medicare, and income tax. This is excessive and unreasonable since I myself am not self employed. This is going to effect me greatly and I have never paid more than 15% in taxes before and an SE tax is an additional 15%! Can something be done? I am also a full time, lower income, student. I am a part-time cashier for a bookstore for the summer, I'm not an independent contractor providing a skilled service. 30% in taxes for being a cashier seems a bit much.
If the company that you work for is not issuing you a W-2 and you did not give them a Form W-4 for your exemptions, then you are self-employed and not an employee.
If they didn’t take the Social Security and Medicare tax out of your pay you have to pay it yourself.
That is fine, my problem is the additional 15% in SE taxes for being a cashier.
Being self-employed you pay both the employer and employee portions of the SS and Medicare taxes. However, one-half of the SE taxes paid is entered on your Form 1040 as a Adjustment to income on line 27, thereby reducing your Adjusted Gross Income.
I see I do not fit the requirement for an independent contractor, I am indeed an employee. Do you know what I may be able to do?
Workers who believe an employer improperly classified them as independent contractors can use Form 8919 to figure and report the employee’s share of uncollected Social Security and Medicare taxes due on their compensation.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/fss8.pdf">https://www.irs.gov/pub/irs-pdf/fss8.pdf</a>