Can an Employee receive both a 1099 and W2 from an employer?

Question

the employee work in office 3 times a week(W2) but also tutors in home for company when employee wants to(1099). Do you write 2 separate checks. I use Peachtree accounting.

Employee work in the office (w-2) 3 days a week for a hourly rate and tutors in home (1099) whenever he/she wants. Employee hourly rate is much higher when tutoring in home. He/she make their own schedule for in home.

Answer 1

If you are taxing their pay and giving them a W-2, then you should include the turoring in this also. If you give them a 1099, then you don't withhold any taxes from any of their pay, if their pay is over $600 for the year. You would write one check for each; but make sure you either tax taxes out, or don't, you can't have it both ways.

Answer 2

As far as I know you can not have both a W2 and 1099 for a single person, unless they were at different periods. Such as is they started with the company as an Independent Contractor and then switched to a regular employee.

The IRS may see them as a regular employee even though you they were paid some through a 1099. There is a whole lot of factors that determine if a person is a Employee or an IC. But since you already have them as an Employee I don't think they can be both. The IRS may come after you because you are paying some money as an IC and so are not paying some taxes your normally would have if it was paid as an employee.

Now I have seen people do this, but when they were paid as an IC the person did have a separate company and the payments were in the name of the other company and not to the person directly.

It probably would be safer to just have the person give you the time they worked and then covert it into something like a commission so it does not mess up any overtime regulations. But you should probably consult your accountant/lawyer for the exact regulations.

Answer 3

What the others overlooked in their answers was HOW do you pay the employee? If they are paid by the hour, regardless, then it is a W2, with all their time together. If the tutoring is done by the job, with the employee setting their own hours {as in, you are not telling them when and where to do the work} then they are a subcontractor in that case and must be given a 1099 for that work instead.

If you have set them up as a subcontractor already for the tutoring, then they should have already been given checks separately for the different work, and now should be given a W2 for the hourly work along with the 1099 for the other work.

You should really look into the IRS site to see exactly what the employee's duties are considered {hourly versus subcontractor} to make sure that they are being paid and reported properly; the IRS may have a sense of humor, but few Americans appreciate it.

Answer 4

Yes, since they're two different jobs. Definitely write separate checks - not a legal requirement I don't think, but will keep the accouting cleaner, and probably save lots of headaches down the road. Taxes will be deducted from the W-2 job but not from the 1099 tutoring.

Answer 5

yes...you must issue a payroll check for the hours worked in the office and then a sep. check as if he was a "vendor" and no taxes are withheld....they would receive a 1099 at the end of the year showing their untaxed income.

Answer 6

fee is payroll and may were paid like payroll - with taxes withheld did they withhold any taxes from the commissions? you ought to have puzzled it the first fee examine you received too late for them to withhold taxes for any previous funds you're also turning out to be screwed on potential unemployment advantages if those comm aren't from now on being suggested as wages