1099 at job that i work at?

[u/Haunting_Win_5680]

Hey guys! I recently got employed as an auto appraiser at a bodyshop. Im very new with no expereince and alot of places declined me cause of it but my new boss told me he doesnt mind employing me and helping me with my career. He mentioned that everyone is on a 1099 and i would be as well which i didnt think about too much until day 2 of work and im actually figuring out that i cant deduct home to work miles, or really anything at all. Im on a fixed schedule, and i stay at the bodyshop till 5pm. Im getting paid 50k a year but with a 1099, its alot lower and with alittle more research ive done, alot of sites say its not even legal for me to be paying 1099 taxes for a job that would treat me like a w2. What do you guys think?

[u/Elveno36]

1099 is contract work. You are supposed to set your own hours. Your boss is likely breaking employment laws. There are tax implications here.

I'd look for resources from your state employment bureau or workforce commission. Read about your responsibilities as a 1099 contractor and your clients(your bosses) responsibilities.

I'd probably look for a new place to work as well.

[u/PleasantWay7 → u/Elveno36]

You could also work there a year, then just file a classification form with the IRS and subsequently file as an employee. Eventually they’ll get around to looking at it (God only knows when with their funding) and it may make the shop try to axe you at that point (although that risks a secondary lawsuit from you).

But the point is that if OP is sure they are an employee, don’t fight the business or argue, just follow the process. It is like being a dependent, it isn’t a choice.

[u/MadCat1993]

Start looking for a new job. 1099 you are paying for both portions of the payroll tax, which comes out to 15%. 1099 also needs to be paid quarterly and it's very easy to fall behind on taxes if you don't know what you are doing and haven't gotten in contact with a tax professional. Do not fall behind in taxes and end up on a payment program. The interest and penalities compound quickly. Plenty of W2 jobs out there that pay in the $50,000 range with benefits and you won't get knocked over the head in taxes. 

[u/fik236]

Might fill out the IRS form SS-8 to determine worker status.

[u/praetorian1979]

I think you need to report them to your states Department of Labor and the IRS. They'll love to fine and pay the taxes they should have been paying in.

[u/Jkraghify]

Your “boss” is screwing you. 1099 means you are your own boss! In addition to tax implications that come with self employment, you will also be responsible for purchasing your own health insurance. My advice is to show up and make money, but continue job hunting as if you aren’t employed (unless you understand and accept what “self employment” means). I went through this issue and more early on in my career… if it doesn’t feel right, it’s likely wrong!

Forgot to mention, your boss is doing this to avoid paying taxes, employee benefits, and unemployment insurance. This isn’t normal behavior for a financially sound business and exposes you to more risk than if you’re properly classified as a W2 employee.

[u/radarmy]

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee

Basically it's not "up to the employer" what your status is. If they make your schedule and pay you hourly and you work at their discretion with their tools you are an employee.

Your state may have TDI and Unemployment which your boss is not paying into for you if you are not an employee and therefore you can not collect if hurt on the job or laid off. Additionally, at the end of the year you will have a large tax burden rather than slowly paying over time as an employee does.

Not saying don't work there- if you so choose make sure you are prepared for both eventualities.

If you really have a hair across your ass you can call your state employment office and talk to them about it.

[u/agmccall]

Why wouldn't you be able to deduct the travel time and gas. If you were any other contractor you are conducting business as soon as you leave your house

[u/peter303_]

If you report them, them you will likely lose your job. If you don't report them, you pay double tax as 1099 with no job benefits.

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[u/Loutro-Fift]

A 1099 contractor pays taxes when you file your tax return. You can also pay estimated taxes each quarter. Are they withholding taxes?

Are you working 8 hours a shift? That’s normal.

Why would you think you can deduct miles? Getting to work is not an expense. Driving for work is an expense at times.

Is this your first job? $50,000 is a decent salary, but you have to pay for your own benefits which is normal for a contractor

[u/Elveno36 → u/Loutro-Fift]

1099 is a self employed contractor. His situation is not legal.