How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Stephanie B. Your Own Question
Stephanie B.
Stephanie B., Enrolled Agent
Category: Tax
Satisfied Customers: 556
Experience:  MTax, EA, QuickBooks Proadvisor. Over 15 years accounting and tax experience specializing in individual and small business.
Type Your Tax Question Here...
Stephanie B. is online now
A new question is answered every 9 seconds

My employer wants to set me up from contract labor to being

Customer Question

My employer wants to set me up from contract labor to being on the payroll.. Should I do this I have back tax issues and I doubt I will get any kind of refund.. Should I stay self employed and just pay at the end out of pocket?
Submitted: 4 years ago.
Category: Tax
Expert:  Stephanie B. replied 4 years ago.

Stephanie B. :

Thank you for your question.

If you are a true employee, your employer should be reporting you as a W-2 employee. If your employer has misclassified you as a subcontractor, he/she could owe back employment taxes upon an audit. The IRS is scrutinizing companies much more closely for this misclassification now.

Here is a link to the IRS website regarding subcontractor vs employee.

If you owe back taxes, this may be a way to help catch those up. Although you may not get a refund, it will assist in reducing your back tax owed and possibly make it so you don't increase your tax debt for 2012.

Let me know if you need further clarification.

I look forward to your response.