Question:

If my employer 1099's me, but i am supposed to be classsified as an employee, does he become the person liable

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for the tax amount on my income? or do i still have to pay it? and will he be fined for this

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  1. If IRS audits the employer and reclassifies you as an employee, you would have to pay the employee's half of social security and medicare taxes and any income tax due.  The employer would be assessed tax along with penalties for late filing and not making the required prepayments.

    Complete an IRS Form SS-8 to get an official ruling on your status.  This will help you get unemployment if you get fired. When you file your income tax return, you can attach Form 8919 Uncollected Social Security and Medicare Tax on Wages and only pay the employee's half of social security.  As I previously stated, you will still have to cough up all the income tax that should have been withheld. IRS and the states are stepping up enforcement in this abuse area.


  2. nope - you are responsible if he gives you a 1099 - does he withhold any taxes or does he pay you your full hourly wage? most likely, he is illegally classifying you as a 1099 employer - you could rat him out to the IRS and then he would  have to pay the taxes and penalty - if you're still working for him and he's not withholding taxes, then you better put 30% of your check aside for taxes

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