How to file taxes without EIN on employer?

Question

My husband was labeled as a “contract laborer” for an employer, but he was an actual employee (i.e. he was paid by the hour, clock in/out, etc.). The guy never took taxes out of any of his checks, and I was very skeptical. As a result I made a copy of each of his checks! I am sure that he did all of this to escape paying taxes…

I had my husband call the guy and ask if he would be sending out 1099’s or W2’s, and he said yes. However, when my husband asked if he had an EIN he changed the subject and got off the phone with my husband.

It is my intent to file this income with the IRS, but I am afraid that this guy doesn’t have an EIN number. I spoke with someone at H&R Block, and they have informed me that more than likely my husband will get a 1099, but my gut says it’s highly unlikely. He also informed me that it was a smart move on my part to make copies, because many of these guys lie about how much was made by individuals on 1099’s.

How do I report this income without an EIN? Can I input this info as a W2 and not a 1099? Plus, I am using the online software.

Answer 1

Actually, if he files the amount as self-employed on a schedule C or C-EZ, he doesn't need the EIN. So as long as you have all the numbers (from the checks that you wisely kept copies of) you'll have all the info you need to file even if he doesn't get a 1099. For W-2 income you'd need the EIN, but for 1099 income you don't.

You're right that the guy was just avoiding paying the employer taxes for your husband's work - sounds like he legally should have been classified as an employee, not a contractor.

Answer 2

I have a canned explanation to apparently clueless independent contractors:

Some employers try to get around paying employment taxes (social security and unemployment) and other employee benefits like workers compensation insurance by improperly classifying employees as independent contractors. The basic issue is the amount of control the employer has over the worker. If you are required to show up for work--personally--at a particular time, punch the clock, use the employer’s equipment and are paid an hourly rate, or another set rate based on time served, you are an employee. If you didn't understand the difference when you posed your question, I would be even more convinced that you are an employee. What is your preference, Slotted or Phillips? Complete an IRS Form SS-8 to get an official ruling on your status. This will help you get unemployment if you get fired. When you file your income tax return, you can attach Form 8919 Uncollected Social Security and Medicare Tax on Wages and only pay the employee's half of social security. You will still have to cough up all the income tax. IRS and the states are stepping up enforcement in this abuse area.

Answer 3

There are two approaches.

#1, assume 1099-Misc and just put all the income on the schedule C, pay the SE tax and move forward. Technically a self-employed person has to keep their own records and not rely on the 1099-Misc forms anyway.

#2, push the issue after you get the 1099-Misc. File a form ss-8 with the IRS and ask them to make a determination as whether your husband was an employee or a contractor. There is a new IRS form 8919 to calculate the 7.65% due as an employee. (The IRS would pursue the other 7.65% from the employer.)

Answer 4

you do no longer choose their EIN to document your return in simple terms mail in the return. you won't be able to e-document legally besides employing a substitute W2 you additionally can get a substitute W2 from the IRS which will prepare the EIN. It does look peculiar they could in simple terms no longer reprint the w2 yet they might desire to in contrast to you.