I THINK I AM REALLY AN EMPLOYEE

WHAT DO I DO NOW?

What you do first depends on whether you are still employed by the company who sent you the 1099. If not, it may not matter to you what happens to the employer. If you are still employed, understand that the remedies available to you could get you fired. So be prepared to look for a job.

If you are still employed, you should go to your boss and ask why you were treated an an Independent Contractor (IC). See if you can get them to reclassify you. If they say no, you have to decide if you are prepared to get another job.

If the consequences to the employer are not a concern to you and you want to try to get the IRS to force them to reclassify you, you need to complete Form SS-8. This is a long form and it should be completed as thoroughly as possible. Be aware that it is possible that you will not be reclassified since the employer will have an opportunity to argue their case.

In the meantime, you report your income from the employer as "Wages"  on line 7 of the 1040 and attach Form 8919 to your return. You must also file Form SS-8 unless:

- The IRS has already informed you that you are an employee

- You were previously treated as an employee by the company and you are essentially doing the same job or

- One or more coworkers are doing the same job as you and they are treated as an employee

You will still be responsible for your share of FICA/Medicare tax as well as income tax so you may still end up owing more tax than you can pay right now. If so - Click Here.

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