As a former subcontractor hired fulltime, can I add that salary to my current FT salary with the same company?

Question

In the past year I went from a subcontractor to a full time employee with the company I currently work for. Is there a way to add my subcontractor wages to my full-time wages come tax time?

Answer 1

Your subcontractor wages and employee wages will be added together on your tax return.

Your subcontractor wages will be reported to you and the IRS on Form 1099MISC. You will use Schedule C to record your income and expenses. The net earnings will transfer to Form 1040. In addition to income taxes, you will pay self-employment taxes on your net income.

Your employee wages will be reported to you and the IRS on Form W-2. This amount is put on Line 7 or Form 1040, and added to your other income for income tax purposes.

Answer 2

Let's see, you took the job as a contractor and willingly agreed to be paid on a 1099-Misc and cover all payroll taxes (15.3%) yourself.

Now you are an employee and you pay 7.65% and the employer pays 7.65% and you wonder if this is the way it should have been all along.

If you truly believe you were an employee the whole time (if you are doing exactly the same work, it's not exactly a choice), then you can argue that you weren't really a subcontractor.

File the form ss-8 with the IRS, wait 120 days and see if they agree with you that you were really an employee the whole time. You would also add form 8919 with your taxes so you will pay the 7.65% fica/mc that wasn't withheld from your taxes.

When you file the form ss-8, the IRS will contact the company for more information. Be sure you have your facts straight before you file the ss-8 (you can be fired over this).

Answer 3

No, you'll do a schedule C and SE for your subcontractor income. You'll get a W-2 for your income as an employee, and that will go right onto your 1040 along with the numbers from the bottom of the two schedules.