How can I be 1099'd and still get health insurance and 401k through my employer?

Answer 1

I agree with Brian G above. They have to pick their poison. Either you are a contractor who gets a 1099 or you are an employee who gets a W-2 and then at some point becomes eligible to participate in the benefit plans. Get clarity on this from your employer....or customer. Whatever they are to you.

Answer 2

If you get a 1099, you are not an employee, so technically you don't have an employer. You will not have any chance of getting health insurance through them as long as you remain in that status.

Answer 3

You probably can't. Their health insurer contract probably covers only employees, and also the 401K rules. As a 1099 contractor you are not an employee.

Answer 4

It is up to the employer to extend these options to you. There is nothing keeping you from getting them. Just because you are an outside contractor does not mean they cannot offer them to you. But most employers do NOT extend these to contracted workers.

You CAN buy into these outside of the employer too. Quite frankly, I have only found the need to have catastrophic insurance in case of a medical emergency, and I manage my own retirement accounts and am making more that way than by using a 401k's plans investment scheme - the last formal 401k I had lost all my money.

Answer 5

You can't. Not legally, anyway. File Form SS-8 with the IRS to have your status reviewed. Your situation virtually screams EMPLOYEE and that should sail right through.

If the SS-8 action has not been completed by the filing deadline, file as self-empolyed and pay any taxes due. When you get the determination and your W-2, file an amended return and get a refund.