Why would I get a 1099misc form? (insurance, small business, accountant)

[zabala]

Hello all, question about tax form.

I worked as employee for a small company for 1 1/2 years and quit few months ago. There were a couple other employees also.

I been waiting for 2008 w2 to fill out 1040ez and hopefully receive small tax return. I receive 1099 misc in mail instead? Last year I have w2 form not 1099misc, same job.

I also have stack of paycheck stubs from 2007 and also 2008. They all show amount taken for SOC SEC/ MEDICARE/ FEDERAL/ CA/ DBL...amount and YTD amounts. Total YTD earnings on last paycheck about the same (-72.00) as #7 on 1099misc, (maybe paycheck stub is 2nd last paycheck).

Not sure what to do, I was employee not non employee! ALSO employer is accountant too! Small business is on the side, I don't trust employer...why I quit!

Thank you for any advice!

[sunsprit]

You can try to get the employer to send you a corrected tax form; they have until the end of Feb to make corrections as needed.

Otherwise, you'll just have to file your tax return in accordance with the deductions and earnings per your check stubs. The IRS will question this, but you have your documentation to back it up. The next contact they'll have will be with the employer to set this all straight. The burden is on them to do so, not you, at that point. Be sure to include a cover statement with your tax return and the 1099 explaining the discrepancy, and also note that the job was identical to the prior year's tax return with the W-2.

[texdav]

I's call the employer first . Hope you keep the check stubs as it is possible the employer didn't send in the withholding . I'd call teh IRS if this is the case for advise on how to treat the 1040.

[zabala]

Thanks for advice. I will send email and ask if they have sent out w2 form and see what they say.

[GloryB]

I'm not saying this about your company, but many companies out there pull this because they didn't pay their own payroll taxes, unemployment insurance or matched SS funds. Finally in 2007, this problem was addressed. I went through this last year.

Read about how to handle it here:
Misclassified Workers to File New Social Security Tax Form (http://www.irs.gov/newsroom/article/0,,id=176666,00.html - broken link)

WASHINGTON — The Internal Revenue Service has developed a new form for employees who have been misclassified as independent contractors by an employer. Form 8919, Uncollected Social Security and Medicare Tax on Wages, will now be used to figure and report the employee’s share of uncollected social security and Medicare taxes due on their compensation.

Keep in mind that your employer will find out eventually that you filed this form and it could result in an audit for them. However, this system is backed up at least 6-8 months.

If you have ANY questions at all about how to file the new form or the process or just have other related questions....please feel free to PM me. This was such a pain for me last year and I sure don't mind making it easier for someone else.