1099 question, again...

[Anonymous]

I have been working for my current family since last May. I asked to start having taxes taken out (W2) immediately. I get a call today, in mid March, from their accountant asking me if I am comfortable with a 1099, but they would pay the self employment tax fees. Is this risky? I am not familiar with 1099's, I have only ever received a W2. Thanks in advance!

[Anonymous]

Stick to the w2.
What they are asking of you is illegal.

[Anonymous]

W2
Do not do a 1099

[Anonymous]

I agree--you are not self-employed, you are an hourly employee and they need to issue you a W-2.

[Anonymous]

What possible benefit is there to them to have you file as a 1099 but they pay the taxes? I agree that you should be given a W-2, but it sounds like they didnt realize that, and are now trying to avoid fees for not sending in the taxes throughout the year.

[Anonymous]

You must get a W-2.

[Anonymous]

Report them to IRS. By law, an employer must give you a W2 by Jan. 31.

[Anonymous]

Just pay your own taxes.

[Anonymous]

A 1099 benefits them, not you.

Tell the accountant that you will only do a W-2 since it would be illegal to do a 1099 since by law, you are not self-employed.

He should know this as an accountant.

[Anonymous]

1. They are not required to withhold taxes (your portion) for you. You should estimate your taxes and pay quarterly if they choose not to do that. But they (and you) cannot choose to be a 1089 contractor. It is worse for you to go this route.

[Anonymous]

11:16 you are mixing apples and oranges. the taxes she is referring to in "self employment tax" is social security. with a 1099 the INDIVIDUAL is responsible for both the employer and employee share of social security or 15.3%. While as an employee, only 7.65% is withheld which IS required.

I think you are referring to federal withholdings which is not required.

OP - make them give you a w-2! Any CPA wouldn't jeopardize their license over something so trivial.

[Anonymous]

Anonymous wrote:11:16 you are mixing apples and oranges. the taxes she is referring to in "self employment tax" is social security. with a 1099 the INDIVIDUAL is responsible for both the employer and employee share of social security or 15.3%. While as an employee, only 7.65% is withheld which IS required.

I think you are referring to federal withholdings which is not required.

OP - make them give you a w-2! Any CPA wouldn't jeopardize their license over something so trivial.

I am 11:16. I wasn't mixing anything. She said she asked them to start withholding taxes. Taxes and SS withholdins are not the same thing.