1099 tax question

[Belquar]

If a person wants to work without filling out a W-4 and wants to be a 1099 employee, are there any forms they are supposed to fill out?

TIA

Brian

[rdalland]

If a person wants to work without filling out a W-4 and wants to be a 1099 employee, are there any forms they are supposed to fill out?




http://www.irs.gov/pub/irs-pdf/fw9.pdf

[basketcase]

Per my wife the CPA, the IRS holds forth a list of specific criteria that define whether someone is an employee or self-employed.

Employees get a W2, and contract labor gets a 1099. An employee cannot arbitrarily decide they want to be treated as self-employed or as contract labor.

If the employer controls the what, when, where, and how of what you do, the chances are you will not pass as self-employed.

I'll see if I can get her to send me a link from her office tomorrow.

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Via edit: Reid posted while I was composing. So there's your link!

[ChicotDave]

Rick is right. The IRS decides who is an employee or an independent contractor by guidelines. Better to be classified as an employee so employer picks up half the social security.

Few more weeks of preparing taxes then I can devote more time to riding.

[knary]

Rick is right. The IRS decides who is an employee or an independent contractor by guidelines. Better to be classified as an employee so employer picks up half the social security.

Few more weeks of preparing taxes then I can devote more time to riding.

It's not always better to be an employee. FICA is a ravenous beast, but as a contractor you can feed it all sorts of deductibles that don't fly as an employee. Remember, your employer isn't paying half so much as they're paying you less. Plus as a contractor get to live the bohemian life. :dance

[Bfish]

no such thing as a 1099 "employee" 1099's for "workers" are generally used to report income for commission, independent contractors, etc. the form that one would submit to the payor is a w-9, you would then receive a 1099. i agree with all of the above comments. many good and bad points of being an independent contractor, if one qualifies.

[Belquar]

Thanks everyone for your help.

Brian

[Montana]

Check with your State's Job Service or Workforce center (these are funded by the employers' unemployment system) for other requirements. In Montana, not only will you want a W-9 from them, you will want proof of independent contractor from them (Montana provides an "IC certificate") otherwise you would be liable for their worker comp premiums. I also require from them proof of liability insurance. Basically, review what this person is doing for you, how they are doing it, that they are providing a service as an outside professional, and what you have at risk as a result of them. In Montana it is $1,000 per day fine if you try to avoid employment issues by calling them independent contractors. It's not their decision, it's defined by the relationship.

[BradfordBenn]

Just remember this information is friendly advice.. you should check with the IRS or your tax professional.