Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

My employer has been giving me a w2 form and a 1099 form for

Customer Question
the past 9 years. It...
My employer has been giving me a w2 form and a 1099 form for the past 9 years. It has been brought to my attention that they are not suppose to do this. The reason I get a 1099 form is because I do cold calling to generate appointments for our sales reps. For every appointment the company pays me $25 dollars. For every sale that stems from that appointment I get 1/2 of 1 percent commision which is deducted from the sales reps total commision. I have no write offs because my company takes the write off for all expenses used for my work. This year my expenses are through the roof since I can no longer claim my son. I owe like $6 grand. for the last 9 years I have mostly broke even or paid $600 to $1500. But this year is out of control and made me start talking to people. Is what their doing legit? If not what can I do?
Submitted: 5 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 minute by:
3/7/2012
Tax Professional: R. Klein, EA, Enrolled Agent replied 5 years ago
R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 3,375
Experience: Over 20 Years experience
Verified

Randalltax :

You are correct that you should not get a 1099 and W-2 from the same company. Commissions are wages, not separate payments

Randalltax :

Basically the 1099 forces you to pay both the employer's and the employee's share of the SS and Medicare tax. This means you are fooring the bill for a little over 7.5% of the wages that your employer should be paying

Randalltax :

On top of that, yo have no withholdings, som as you found out, you get zapped at year's end

Randalltax :

You can report this incorrect wage treatment to the IRS and get a determination letter by sending them Form SS-8. THe IRS opens an investigation to determine if you are treated correctly or not

Randalltax :

What are they giving the W-2 for? what about the 1099? They just split your commissions randomly between the two?

Customer:

If I do this I am also putting my job at risk and risk of bad treatment from my employers and managers . Is there any way to recoup the money that I should have received back had I not been 1099? Is my email getting a record of our conversation so I can print it out for future reference?

Randalltax :

The IRS does not tell the employer who sent in the SS-8 form. That's confidential

Randalltax :

You can flag this conversation and come back any time

Customer:

No the w2 is for my hourly wages. I do basic office work along with the cold calling. They separate my income into two catagories, hence the w2 and 1099.

Customer:

how do I flag the conversation. I am at work hard to talk til later.

Randalltax :

It's linked to your account when you sign in

Randalltax :

I don't know specifically how to flag it within your account since I do not have access to that part of the system.

Customer:

Did you receive my answer to your question on why they are giving me a W2?

Randalltax :

I see it. But as stated before, it should all be W-2 ioncome.

Randalltax :

You are only one employee getting two kinds of comp. Not two employees and definitely NOT an independent contractor.

Customer:

ok, is there any way they could be justifing it as a "Spiff"?

Randalltax :

The IRS MAY give you relief if they can determine the company is responsible for their share of the S/E tax

Customer:

if the IRS does go after them clearly I will face repercussions here at work. How can I avoid that. I understand you say the ssr form is confidential. But at some point it will be reveiled that I am the person who has brought this out.

Randalltax :

Spiffs are not subject to S/E tax but must come from a manufacturer not related to your employer to count as a Spif

Customer:

Again, my worry is with repercussions here at work. Are there any safegards for that.

Randalltax :

eventually someone is going to turn him in. So if everyone hides their head in the sand, then this incorrect procedure will continue.

Randalltax :

But the IRS cannot, by law, indicate to the employer who sent in the form

Randalltax :

Of course, if you are the ONLY empoyee, it would be rather obvious

Customer:

Unfortunately, this is a small company and I am the only one being paid this way. He had to turn himself in before for not paying taxes on cash payments. He did it because a previous manager who left the company had already called the health department on him and he knew that was next. Most workers here are benefiting from his shady dealings finacially and have been here for 20 years. I mean if I could at least get unemployment while I look for a new job. But highly likely they will not fire me so they dont have to pay into the unemployment. They would just make my life here more miserable than it already is.

Randalltax :

That is a choice you have to make the call on.

Randalltax :

I have advised you on the options available.

Customer:

Yes. Thank you.

Customer:

Once I log out will they deduct the $34 for your service?

Randalltax :

You must press the Accept button. It is the only way I get credit for assisting you. Thanks so much!

Customer:

ok... thank you. Pressing accept now

R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 3,375
Experience: Over 20 Years experience
Verified
R. Klein, EA and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask R. Klein, EA Your Own Question
R. Klein, EA
R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 3,375
3,375 Satisfied Customers
Experience: Over 20 Years experience

R. Klein, EA is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

3,375 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
As an independent contractor working overseas, I want to
As an independent contractor working overseas, I want to wire funds to the US savings account of my brother. What should I be aware of in taxes,or other expenses. … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
723 satisfied customers
Can an independent contractor/ 1099 worker's wages be
Can an independent contractor/ 1099 worker's wages be garnished in Texas for federal student loan debt?… read more
abci168
abci168
Principal
27 satisfied customers
I am working as an independent contractor for a university
I am working as an independent contractor for a university and have an LLC with C taxation election. The University refused to accept the W9 listing the LLC and informed me that I must complete the W9… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Client who only sells life insurance received a W-2, has
client who only sells life insurance received a W-2, has income tax withholdings in box 2 and box 13 statutory employee is not checked. Can we still file the income and expenses under Schedule C … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
2 Questions: SALES TAX COLLECTED and GROUPON SALES Does
2 Questions: SALES TAX COLLECTED and GROUPON SALESDoes Sales tax get reported on the Corporate Tax Return (1120) as part of Gross Receipts or Sales?I just got an IRS bill because I did not include Sal… read more
abci168
abci168
Principal
27 satisfied customers
I need help for W-2 forms for auto loan asap. File w-2's. I
i need help for W-2 forms for auto loan asap JA: The Expert will know how to help. Please tell me more, so we can help you best. Customer: file w-2's JA: Is there anything else important you think the… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
As an independent contractor (1099) should I form an LLC? Do
As an independent contractor (1099) should I form an LLC? Do I need to? … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
723 satisfied customers
To what address should W-RV, Voluntary Withholding Request,
To what address should W-RV, Voluntary Withholding Request, be mailed? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,458 satisfied customers
My relative asked me if they can request a 1099 form for
My relative asked me if they can request a 1099 form for work they perform on my name because my tax liability is smaller than their. But is that allowed by IRS ?… read more
abci168
abci168
Principal
27 satisfied customers
I filled out the IRS withholding calculator and it suggested
I filled out the IRS withholding calculator and it suggested I claim 8 allowances. I am single, live independently, and have no dependents. I worked at a different, lower paying job from January to mi… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,458 satisfied customers
If I hire a veteran as an independent contractor, would I be
If I hire a veteran as an independent contractor, would I be able to claim the work opportunity tax credit?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
If I work as an independent contractor under a foreign LLC
If I work as an independent contractor under a foreign LLC partnership in California, do I need to register as a foreign LLC in CA? The gross income from CA this year would be less than 50K. CA is NOT… read more
taxmanrog
taxmanrog
Master\u0027s Degree
697 satisfied customers
Can i hire 1099 independent contractors if I'm a single
can i hire 1099 independent contractors if I'm a single member LLC? will that be classified as wages in Schedule C net profit/loss statement? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
FEDERAL INCOME TAX: A SINGLE WOMAN RECEIVES A 2016 FORM W-2
FEDERAL INCOME TAX: A SINGLE WOMAN RECEIVES A 2016 FORM W-2 FROM HER EMPLOYER WITH A TYPO IN THE SOCIAL SECURITY NUMBER. TO DATE THE EMPLOYER HAS NOT PROVIDED A "CORRECTED" FORM W-2. IS THERE AN IRS "… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
How do I pay an independent contractor, such as a massage
How do I pay an independent contractor, such as a massage therapist. … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
After I filled my taxes I received three 1099 forms for
After I filled my taxes I received three 1099 forms for cancelled debt. I was and am insolvent. Do I need to file form 982 with an ammeded tax form or just form 982 since I already filled Greg… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
My daughter-in-law receives a W-2 form from her employer,
My daughter-in-law receives a W-2 form from her employer, this is her only income. The Medicare income is $53,903 but her NJ State income is $60,053. How is that possible? No investment or interest in… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I was an independent contractor and was able to write off
I was an independent contractor and was able to write off all of my expenses. I retired last year and officiate weddings. But being retired I am not able to keep these write offs. If I start a S Corp … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x