Employee AND contractor??
I am an employee with my employer withholding taxes on my pay. I started working for this company last May. On February 20 the boss came in with a 1099 and handed it to me. I got a W-2 in January. The 1099 is for the bonuses that are part of my salary package. The IRS told me that my employer doesn't have to withhold ANY taxes, legally, and even though the 1099 was well past the deadline to be distributed, there would be no repurcussions for the employer. Is this right? They are just screwing me out of their portion of the taxes that they should have paid. I NEVER signed any forms to be a contractor, just a W-4. What can I do?
1 answer | asked Feb 28, 2003 08:33 AM [EST] | applies to Ohio
Answers (1)
I do not know enough to answer your question outright. I suggest that you check with an accountant. From what little I know I believe that you actually benefit from having the bonus reported on a 1099, since you get taxed around 7% for social security and medicaid on W-2 wages but not on 1099.
Regards,
Neil.
posted by Neil Klingshirn | Feb 28, 2003 09:38 AM [EST]
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