No, but you probably should have been paid as an employee, not as an Independent Contractor. See which sounds like your working conditions. If you think you are an employee, file Form 8919, (see below) and you will only be responsible for your portion of the SE taxes. If you decide for contractor, continue with your Schedule C.
Consequences
of Misclassifying an Employee
Classifying an
employee as an independent contractor with no reasonable basis for doing so
makes employers liable for employment taxes. Certain employers that can provide
a reasonable basis for not treating a worker as an employee may have the
opportunity to avoid paying employment taxes. See Publication
1976, Section 530 Employment
Tax Relief Requirements for more information..
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.
To better
determine how to properly classify a worker, consider these three categories –
Behavioral Control, Financial Control and Relationship of the Parties.
Behavioral
Control: A worker is an employee when the
business has the right to direct and control the work performed by the worker,
even if that right is not exercised. Behavioral control categories are:
- Type
of instructions given, such as when and where to work, what tools to
use or where to purchase supplies and services. Receiving the types of
instructions in these examples may indicate a worker is an employee.
- Degree
of instruction, more detailed instructions may indicate that the worker is
an employee. Less detailed instructions reflects less control,
indicating that the worker is more likely an independent contractor.
- Evaluation
systems to measure the details of how the work is done points to an
employee. Evaluation systems measuring just the end result point to either
an independent contractor or an employee.
- Training a
worker on how to do the job -- or periodic or on-going training about
procedures and methods -- is strong evidence that the worker is an
employee. Independent contractors ordinarily use their own methods.
Financial
Control: Does the business have a right to direct or
control the financial and business aspects of the worker's job? Consider:
- Significant
investment in the equipment the worker uses in working for someone
else.
- Unreimbursed
expenses, independent contractors are more likely to incur unreimbursed
expenses than employees.
- Opportunity
for profit or loss is often an indicator of an independent
contractor.
- Services
available to the market. Independent contractors are generally free to
seek out business opportunities.
- Method of payment. An employee is generally
guaranteed a regular wage amount for an hourly, weekly, or other period of
time even when supplemented by a commission. However, independent
contractors are most often paid for the job by a flat fee.
Relationship: The type of relationship depends upon how the worker and business
perceive their interaction with one another. This includes:
- Written
contracts which describe the relationship the parties intend to
create. Although a contract stating the worker is an employee or an
independent contractor is not sufficient to determine the worker’s status.
- Benefits. Businesses providing employee-type
benefits, such as insurance, a pension
plan, vacation pay or sick pay have employees. Businesses generally do not
grant these benefits to independent contractors.
- The
permanency of the relationship is important. An expectation that the
relationship will continue indefinitely, rather than for a specific
project or period, is generally seen as evidence that the intent was to
create an employer-employee relationship.
- Services
provided which are a key activity of the business. The extent to
which services performed by the worker are seen as a key aspect of the
regular business of the company.
From
<https://www.irs.gov/newsroom/understanding-employee-vs-contractor-designation>
Where
8919
This
information is entered in a different area of the program then regular
W2s. It is found under Federal (or Personal)
Taxes-> Wages and Income -> Less Common
Income -> Misc Income -> Other Income Not Already
Reported on A Form W2 or Form 1099
The
quickest way to get there is to use the search feature in the top
right hand corner (magnifying glass icon).
- Search for "8919" and then click
the jump to "8919" link (if you are just
logging into your account, make sure you click the Take Me to My
Return button before performing the search).
- You will get sent to
the Other Wages Received Page
- You will
click Yes and proceed until you get to Any Other Earned
Income
- Click Yes to this
question because you have other income that should be on a W2
- Leave check next to employee
compensation that was not reported on a W2
- Next screen will
be Employee Compensation that was not reported on a W2
- This screen will
explain Form 8919 and SS-8. TurboTax will prepare and
file Form 8919 for you with your return, but you will need to file SS-8 on
your own (link below - though looks like you already took care of this
part)
- Next screen will have to
report your wage information
- Next screen will remind you
that a Form SS-8 is required
- Next screen will ask if these
wages were reported on a 1099MISC
- That will be the end of this
section (program interview may go on to ask about other less common income
types)
