If an employer pays you on a 1099 does that mean he spends no taxes on you?

Asked almost 2 years ago - Jacksonville, FL

Or not?

Attorney answers (6)

  1. Brian Joseph Munson

    Contributor Level 13

    11

    Lawyers agree

    1

    Answered . If you received a 1099, then your "employer" considers you an independent contractor and the payroll taxes are your responsibility. You will have to file a schedule c with your return to show the income and a schedule se to compute the self employment tax.

    This answer does not establish an attorney-client relationship, Moreover, this attorney is Licensed to practiced... more
  2. David Aaron Wiesen

    Pro

    Contributor Level 13

    11

    Lawyers agree

    Answered . Right. No taxes by paid employer. 1099 recipient is independent contractor.

    Postings provided on this forum are informal and do not establish an attorney client relationship. To discuss... more
  3. Ari Benjamin Good

    Contributor Level 8

    6

    Lawyers agree

    1

    Answered . That's true. As one of my colleagues mentions whether you are ACTUALLY an "independent contractor" depends on your relationship with your employer. If we assume that you are (and that the employer did not have to withhold taxes for you or pay employment taxes for you), be sure to check with your accountant. You will have to pay self employment taxes (this is different than your regular income tax), since your employer did not do so for you. Click the link below for my article on the differences between employees and independent contractors.

    Ari Good, Esq. is licensed to practice law only in Florida, Illinois (inactive) and Washington, DC (inactive).... more
  4. Steven M Zelinger

    Pro

    Contributor Level 20

    7

    Lawyers agree

    1

    Answered . You are considered an independent contractor if you get a 1099...whether this is proper or not depends on many factors. Many companies prefer independent contractors for the reason you identify which is that they do not pay the employer side of payroll taxes for you.

    This is not legal advice nor intended to create an attorney-client relationship. The information provided here is... more
  5. Claudia Susan Kenny

    Contributor Level 3

    4

    Lawyers agree

    1

    Answered . I agree with the last answer. Yes it is true that if you are 1099ed, the company 1099-ing you did not pay any associated payroll taxes for you. That also means, as previously noted, that YOU are responsible for those taxes as income you received. Whether you are an independent contractor or not is dependent on your relationship to the company paying you. Do you have set hours? Do you have to work at specific place? Do you invoice the company? There is a whole list of issues to look at to help you determine your true status on the IRS's website.

  6. Christopher Michael Larson

    Contributor Level 19

    2

    Lawyers agree

    1

    Answered . It means you are responsible for paying all of your employment taxes. If you are an employee, they must pay a portion, and withhold the rest.

    Christopher Larson
    Insight Law
    Bellevue Tax Lawyer
    Tax Attorney
    Tax Attorney Kent WA
    Tax Attorney Lynnwood WA
    Tax Attorney Redmond WA
    Tax Attorney Snohomish WA
    Washington State Tax Lawyer
    Tax Attorney Bremerton WA
    Tacoma Tax Attorney
    Tukwila Tax Attorney
    Seattle Tax Attorney
    Bellevue Tax Attorney
    Everett Tax Attorney

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

26,979 answers this week

3,193 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

26,979 answers this week

3,193 attorneys answering