Thursday, January 17, 2019

WHY DID I RECEIVE A FORM 1099 AND NOT A FORM W-2?

At tax time, employees should receive Form W-2 from their employer. If you’ve received a 1099 Form instead of an employee W-2, your company is treating you as a self-employed worker.  

This is also known as an independent contractor. When there is an amount shown on your Form 1099-MISC in Box 7, you’re typically considered self-employed.

DO YOU NEED TO FILE BACK TAXES?

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Review the Difference Between an Employee and Independent Contractor

When you are paid by your employer, the employer withholds taxes, which will be reflected on your W-2. When you are paid as a contractor, however, you have to pay these on your own and you’ll receive a 1099 form instead of the employee W-2 form.

Three basic areas determine if you’re an employee:

Behavioral Control – Whether the business has a right to direct and control how your work is done
Financial Control – Whether the business pays your business expenses and buys your tools
Relationship of the Parties – Whether the business offers you benefits, such as insurance, vacation, or sick pay
What Should I Do If I Am Getting a 1099 Instead of a W-2?
If you are getting a 1099 form instead of a W-2 and think you should be classified as an employee, you should first contact your employer to be reclassified correctly. If the employer disagrees, you can have the IRS make the determination. You’ll need to file Form SS-8: Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. You might also need to file a Form 8919: Uncollected Social Security and Medicare Tax on Wages to report and pay your share of these taxes.

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2017/2018 tax return or past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund and reduce your chances for an IRS AUDIT.

Advance Tax Relief is headquartered in Houston, TX with a branch office in Los Angeles, CA. We help many individuals just like you solve a wide variety of IRS and State tax issues, including penalty waivers, wage garnishments, bank levy, tax audit representation, back tax return preparation, small business form 941 tax issues, the IRS Fresh Start Initiative, Offer In Compromise and much more. Our Top Tax Attorneys, Accountants and Tax Experts are standing by ready to help you resolve or settle your IRS back tax problems.

Advance Tax Relief is rated one of the best tax relief companies nationwide.

Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online. Feel free to also learn about us and contact us via www.advancetaxrelief.com.

However, it doesn’t matter where you live, we service taxpayers nationwide. We have settled millions in back tax penalties and interest for our clients nationwide.

Advance Tax Relief is a Professional Tax Relief Organization

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