Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

My husband gets paid via a W2 for some of the work he does…

My husband gets paid...

My husband gets paid via a W2 for some of the work he does for a particular very large company. The same company also pays him for some work via a 1099, and a different division within the same company pays him for more work via another 1099. The work itself is the same. They are just classifying him differently. This isn't right, is it?

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

My husband does consider himself an IC in the sense that he does do work (of the same nature I described above) for other different companies. But, this one big one is the largest source of income, and I think what they're doing is shady. We have, as a result, a very large tax bill every year. They'll pay him up to a certain point via a W2 and then say in order to avoid some cap (not sure what they mean) the rest will be via 1099.

Show More
Show Less
Ask Your Own Tax Question
Answered in 2 minutes by:
3/13/2018
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,213
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Ask Your Own Tax Question

Classifying an employee as an independent contractor with no reasonable basis for doing so makes employers liable for employment taxes.

Workers who believe an employer improperly classified them as independent contractors can use Form 8919 to figure and report the employee’s share of uncollected Social Security and Medicare taxes due on their compensation.

An employee performing the same tasks for a company may not be an employee and an Independent contractor.

Ask Your Own Tax Question
Customer reply replied 4 months ago
If we were to file the 8919, that would mean that the IRS would circle back to the employer, right? So we would be potentially starting a legal battle if we did that. I mean, what they're doing is wrong, but it's a tricky situation when they supply the majority of our income. If we/they were to get audited, would we have any liability for allowing this situation to continue? E.g., if we didn't file that form?

Yes, they will investigate the employer.

As I said the employer is the one that needs to properly report and pay their share. You are already paying the full SS and Medicare. You would not be in any trouble though no.

Please let me know if you need more information.
If not then please scroll up to see the STARS to rate so I am credited.

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,213
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified
Robin D. and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 4 months ago
Thanks, ***** *****! You were very helpful.

You are most welcome.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Robin D. Your Own Question
Robin D.
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,213
18,213 Satisfied Customers
Experience: 15years with H & R Block. Divisional leader, Instructor

Robin D. 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

1,338 satisfied customers

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

Richard

Richard

Tax Attorney

4,512 satisfied customers

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

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

18,213 satisfied customers

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

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 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.

< Previous | Next >

Related Tax Questions
Nevada LLC company "A" has Independent Contractor (IC's)
Nevada LLC company "A" has Independent Contractor (IC's) agreements with several IC's, who are all LLC's or Corporations located in various States. The standard IC agreements state that the IC's are r… read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,474 satisfied customers
My son and I Incorporated our business last year to an LLC.
My son and I Incorporated our business last year to an LLC. He is the owner of the business and we have had payroll companies process payroll since the formulation of the company. The LLC is registere… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
R.Klein. I get one quick question. Can I issue 1099 and w2 to the same person in th
Hello, R.Klein. I get one quick question. Can I issue 1099 and w2 to the same person in the same time? I have one employee who before worked as part-time cashier only. Starting from last month, he wou… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
We retained a substitute organist hours a week while
We retained a substitute organist for 10 hours a week while he continued to seek full time employment elsewhere. He has played for us for two years. He has never signed a contract, never applied for t… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
There is a new W2 employee whose last state of residence was
There is a new W2 employee whose last state of residence was in Indiana working. We are setting up with payroll service, but they haven't gotten us the estimate yet. For a gross pay of $1,000 can you … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
How should he receive rent after he becomes a student which
How should he receive rent after he becomes a student which is not allowed to make money while he is student visa ( not us citizen)? Here is the situation. My friend(he) has a company to provide couns… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My employer has been giving me a w2 form and a 1099 form for
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 co… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
Friend is sole owner of S Corp and does his financials using
Friend is sole owner of S Corp and does his financials using cash method of accounting. Assume all cash received after January 1, 2010 will be included on 2011 tax returns as sales? If so, big loss si… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
My husband is employed (9 mos) as a college professor. He
My husband is employed (9 mos) as a college professor. He also works as a contractor for a foundation (25k/year). However, they provide him with a w2. They take out some fed tax ($382), SS ($1550), me… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
Difference between subcontractor vs. independent contractor?
Could you please help me understand the difference between the designations of subcontractor vs independent contractor vs contract/labor?… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
My husband is a physician who works for a private practice
My husband is a physician who works for a private practice of other physicians. Previously he was classified as an employee and recieved paid vacation,eligability for 401K ( piss poor) and no other be… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I am working with a company on w2. I am getting an offer to
I am working with a company on w2. I am getting an offer to work on 1099 with same company on a different rate. Please guide me in which way I can save more on taxes.… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I hired an IC and he filled out a W-9, but has decided he wants
I hired an IC and he filled out a W-9, but has decided he wants to be an employee with taxes held out. Can I legally change him from a 1099 to a W-2… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
How to get copy of ex-husband's tax return from last year?
How can I obtain a copy of my ex-husbands tax return from last year? Child support is based on his income, which he lied about. I need to prove he made more money. Already Tried: I cannot find anythin… read more
Kophy
Kophy
Internal Audit Director
Bachelor's Degree
22 satisfied customers
My husband is a truck driver for a oil/gas company paid by
My husband is a truck driver for a oil/gas company paid by the hour. The company has sent him on out of state jobs that are Teamster Union jobs, thus union wages must be paid. The difference in his re… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
My husband is a broadcaster. He is paid a salary from his company
My husband is a broadcaster. He is paid a salary from his company and gets paid an extra $10 each for live spots he does for advertising clients on his daily radio show. This has been paid in his payc… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
My brother is a day trader, and I had given him around ...
My brother is a day trader, and I had given him around $20,000 several years ago. He placed the money in his own account and has paid all the cap. gain taxes or whatever he had to pay on the money ove… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
CAN MY EMPLOYER PAY ME UNDER A W9 SECENARIO IF MY BASE PAY ...
CAN MY EMPLOYER PAY ME my monthly bonus UNDER A W9 SECENARIO IF MY BASE PAY IS BEING FILED UNDER A W2 SCENARIO39538.5251415162… read more
Mark D
Mark D
Enrolled Agent
Master's Degree
1,338 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