What can I do if I am an employee and got a 1099 misc. form from my employer? and how does it affect me.?

Question

I looked at the IRS website under (employee or contracter) and it seems to me that I am an employee. By the way Im truck driver and my employer pays the diesel the repairs and owns the trucks and I have no expences. So I dont understand why the 1099 as self-employed.

All the other drivers are getting 1099 also. I might think that he is trying to get out of paying his share.

I am a local driver, he calls me every after noon to let me know where im going to work.

Answer 1

sounds to me that your "employer" didn't deduct taxes for you at all thru the time you've been driving for him....might want to recheck that information and see if you have to pay taxes on income...I do a 1099 for I'm self-employed.
You might also want to find out what the misc. is. did you get paid a bonus?? Was any taxes takenout on that bonus, if not, you might owe...

You need to ask to your employers comptroller or whoever handles payroll for more clarification. Good Luck, I hope you don't owe....Nobody likes to pay out to the corrupted gov't anymore these days.

Answer 2

You've been classified as an IC as you know. You can contest this by filing a Form SS-8 with the IRS. If you are reclassified as an employee, your employer will have some significant expense on his hands.

But in the interim, you need to file Form 1040, Schedule C or C-EZ to account for the 1099 income and any business expenses, and Schedule SE to calculate the Self Employment tax. The SE tax is the one that's going to get you -- it's 15.3% of the net profit on Schedule C or C-EZ.

If you didn't pay quarterly estimated taxes throughout the year, there will probably be a penalty and interest for underpayment of estimated taxes.

If the SS-8 determination goes in your favor, the employer will owe you half of the SE tax that you paid. You'll still be on the hook for the remainder of the SE tax, income tax, and any penalties.

Answer 3

This happened to me. I had to file a special tax form as a "replacement" W-2, and pay the withholding that my employer did not withhold. The IRS is still going after him for his share of the withholding. I had to fill out a ton of paperwork explaining how I was a full-time employee under the IRS definition. It has been a six-month hassle. I'm sorry you're going through it. Definitely see if you can resolve it with your employer first. Best of luck.

P.S. This is important to resolve properly, because you are entitled to Social Security withholding, etc. Don't just settle for the 1099 income if you were, indeed, a full-time employee.

Answer 4

A 1099 is just a form showing home much untaxed income you have earned in the last year. That means when you go to get your taxes done. They will add what ever amount you have earned on top of the wages that you have already paid taxes on and put the two together and recalculate your new tax you own then because you didn't paid the tax up front you will be paying it in the rears.. The money is always good when you get it but then It comes time to pay the man, unless you put some of it away for taxes, you won't be happy !!!

Answer 5

The differences can be very complex, and has to do more with how much control you have over the work you do than who owns the trucks. If you are hired to drive the truck from point A to point B, taking whatever route you feel is best, pay for your own meals and lodging, don't check in on a regular basis, and have the freedom to work for another trucking company between jobs at this one, then it would lean to independent contractor. If you do not pay for hotel rooms (or submit an expense report to your boss for repayment), are told what route to take, and have to check in on a regular basis, you would more likely be an employee. These are just general guidelines, not a definite answer for you.