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jay
Lv 5

my employer gave me a 1099 misc form but i am a employee?

ok so i worked for a friend of the family in 2013 he owns a restaurant that cooks and sells fresh seafood. i was hired as a shift cook to cook and help costumers when asking about our raw seafood. i was told i would get paid 800 dollars bi-weekly working 6 days a week from 11-9pm. i needed a job so i took it. since it was a family own business out paychecks weren't stubs just personals checks under the company name. so i got my taxes today and well i got a 1099-misc for non employment compensation amount of $15141.66. what threw me off that the 1099 is a form for a self employed person. which i wasn't this was me being mostly a cook like any other at a restaurant. so now i can't deduct anything because everything was provided for me. i have business expenses what are my option is my employer committing fraud? do i need to take him to court?

Update:

yea i don't work for him any longer still a friend of the family but no longer work for him. so am i really looking at 1258 in taxes

7 Answers

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  • ?
    Lv 7
    7 years ago
    Favorite Answer

    File form SS-8. If the IRS agrees with you you'll owe $1258 of payroll tax instead of $2139.

  • Judy
    Lv 7
    7 years ago

    Why didn't you question when you first worked there why no taxes were being taken out? Now you're looking at more than the 1258 you mention in taxes. You have to pay what you should have paid as an employee.

    No you don't take him to court, you report it to the IRS and they'll handle it. File form SS-8 with the IRS asking for their determination on whether you were an employee or not. When they agree with you, and they will, you'll only have to pay the 7.65% of your gross pay for social security and medicare that an employee pays, not also pay HIS share. You'll also owe federal income tax, plus maybe state and local.

  • Anonymous
    5 years ago

    You are considered self-employed--sounds like this employer is possibly breaking the rules though--you almost sound like an employee. Regardless, you file a Schedule C--if you've never done it before--get some help, it can be difficult. You don't need a bus. license, the govt. considers you a business. You will need to pay self-employment tax (15.3%) and income tax BUT you can do deductions. It is usually easier to do mileage deductions BUT you cannot deduct for commuting miles (to and from work). There are exceptions (not sure of your job) but for most people, they can't do it even as a self-employed person.

  • 7 years ago

    No, you don't take him to court. This is quite common. SS-8 is the correct form for a re-classification. That's no guarantee that you won't receive another 1099 next year.

    One owner who we did an forensic audit on for a client, unrelated reasons, had done this for 19 years until their business closed. Never classifying their employees, as employees, despite receiving multiple letters from the IRS that various employes, at various times, had been reclassified.

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  • ?
    Lv 7
    7 years ago

    shift cook ... working 6 days a week from 11-9pm

    Check the IRS guidelines, if your employer assigns you shifts you are an employee. The family friend is trying to stiff you, making you pay the taxes he is supposed to pay.

  • 7 years ago

    You don't need to take him to court. Just fill out Form SS-8. If you fill out Form SS-8, then you can file and pay the same taxes as you would if he had given you the correct form (W-2).

  • Wolfie
    Lv 4
    7 years ago

    "paychecks weren't stubs just personals checks under the company name."

    if it shows the withholding, it's a "paystub". Payroll can also be Cash. There is no law it has to be done by a payroll processor like ADP or Paychex.

    _________________________________

    The fact you received a 1099 shows the 'employer" is trying to avoid payroll taxes. He probably also thinks because he's paying you as a "contractor" he doesn't have to have worker's comp insurance, either. He's dead wrong on both counts.

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