US 1099misc/W2 help

[Kittycat155]

Anyone know why a small employer(10 people or so) would issue a 1099misc instead of a W2 to a regular 40 hour a week employee. Is it to avoid paying more fees or ?

Also what is difference far as person getting the 1099MISC have? I see increased tax for having to file under the self employed section.

Thank you for any insight

 

[x__amour]

Isn't it the most annoying form ever? I had 1099 when I started at my old job because I was "contract" until they hired me full time and then I had regular payroll with W2s. I had almost $8,000 in untaxed wages that I had to pay when taxes came around last year!

 

[tammym1974]

It seems as if they are considering you an independent contractor. As an independent contractor you are eligible for employment taxes, social security taxes, unemployment, etc...not the employer. Is this something you agreed to when you were hired? If not...it's quite possible the employer misclassified you in an attempt to avoid paying these taxes and could face penalties.

Are you still employed there?