Can I file both W4 and W9 working for the same company but in a different department?

Question

I'm a saleried Asst. Mgr for my company and we also have many contracted work available which requires you to file W9 as an independent contractor. Is this possible? to claim both w4 and w9 for the same employer?

For an example... My title is stated above but I thought about obtaining an EIN number and start bidding on some of the contracted work our company pays to vendors. I hope I make sense....

Answer 1

There is no tax law which prohibits this. However, you and the company would have to demonstrate to the IRS that you are truly an independent contractor and not just an employee doing overtime in another department of the same company you are salaried at.

Are you a non-exempt employee or exempt? In other words, do you get overtime at time and a half or not? If you are non-exempt and are treated as an employee when working in the other department, they will have to pay you time and a half for anything over 40 hours a week.

Please remember that an independent contractor has to pay the employer's share FICA (social security and medicare) contributions as well as his own, so you are going to be paying up to 7.65% more. As an independent contractor you will most likely have to make quarterly estimated tax payments.

Answer 2

That sounds like some shady business dealings going on there...