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Hi all, just curious...can an employer classify you as a non employee and an employee at the same time? Is that fairly common?
What if the previous year you were only classified as an employee by the same company? I received a weekly paycheck for hourly pay while working for them btw.
My employer filed a 1099 as well as w2 to IRS but the previous year only the w2 was filed. It just seems odd that I would be classified as an non employee, (independent contractor) AND an employee at the same time for the same company one year but not the next.
Your status as an employee is determined by what you do and how, not who you are. A simple example is if you worked as an hourly truck driver during the week, but had a body shop in your garage where you fixed the employer's trucks by bids on the weekend you would be both an employee and an independent contractor.
If you are receiving compensation as an employee where the employer directs the work and/or you are paid by the hour, all of your compensation is employee compensation.
Having said that, there are various types of payments that the employer may make to you that are not wages and are properly reported on a Form 1099.
Were taxes take out of your check? They may not have been, hence the 1099.
Yes, taxes were taken out of my paychecks - which are on the W2 form I received.
The company I worked for is a pet sitting company which typically hire people as independent contractors. The company I worked for however, went out of it's way to mention it is the only one who has hourly paid employees and not independent contractors. This is why the 1099 seemed odd to me. The 1099 form also has the exact same amount as the W2 form for total gross earnings and again, no 1099 the previous year.
I was hoping to avoid contacting the boss, (I'd quit because I didn't like some of their business practices & never wanted anything to do with them after) but I will have to contact them to find out this reason. Someone had mentioned to me about filing a form 8919 - SS-8 to the IRS but the fact I also got a W2 with the 1099 makes me not sure about that. I was classified as a regular employee as well as indy contractor.
Yes, taxes were taken out of my paychecks - which are on the W2 form I received.
The company I worked for is a pet sitting company which typically hire people as independent contractors. The company I worked for however, went out of it's way to mention it is the only one who has hourly paid employees and not independent contractors. This is why the 1099 seemed odd to me. The 1099 form also has the exact same amount as the W2 form for total gross earnings and again, no 1099 the previous year.
I was hoping to avoid contacting the boss, (I'd quit because I didn't like some of their business practices & never wanted anything to do with them after) but I will have to contact them to find out this reason. Someone had mentioned to me about filing a form 8919 - SS-8 to the IRS but the fact I also got a W2 with the 1099 makes me not sure about that. I was classified as a regular employee as well as indy contractor.
Thanks for the help!
To be an independent contractor you would dictate your own hours (to a degree). You would have your own tools, and cover your own expenses. You also get paid by the job, not by the hour. Many groomers are considered independent contractors and recieve a 1099 form.
I worked at a kennel in FL and the owner paid me as an independent contractor while I was working in the kennel. She did this until someone turned her in (wasn't me) and she had to legitamize her business. She was mad because she was then responsible to pay payroll taxes and FICA. It sounds like they are just trying to save some money, but they would be liable for back taxes if they are caught.
Theoretically you could be on the clock for part of the day where your employer has control over you in any way, and then after you clock out, your own independent business is hired (but not your name unless it is not identified as a social security # but as a DBA'ed tax payer ID #). You work under a specific contract for a set amount for each project to completion. They cannot provide your help, tools, training, set your hours or your ability to subcontract the work they have a contract with you for. It is your business and your contract, not theirs for you to sign!!!!!!! Beware of this scam!!!!
That is like you owning a car dealership business and someone comes in with their own contract to purchase from you.
It is all about control in the end.
The more that separates you from the employer, the better to prove you are independent from that other company that does not have the workforce to provide the labor themselves. In otherwords, you are working for your competition.
Wait, you received a w2 with all your wages For the year and also a 1099 showing the same amount? I don't think this is a worker classification problem. Sounds like an error on the part of the business but unfortunately they have reported your income incorrectly to the IRS. You should contact the business to get them to correct the 1099.
If this were an employee/independent contractor issue you'd just have a 1099 or you'd have a 1099 for part of the year and a w2 for another part.
It's legitimate for a business to 1099 you for income from which they haven't deducted taxes, like a bonus.
I manage a team of 1099 employees with a supervisor over them. We call them "our guys", give them Christmas bonuses, feed them, but they aren't actual employees of ours. We try to make them feel like part of the team. The supervisor gets it and tries to convince me to hire them into the organization about once a month.
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