I have accepted a job offer which requires verification of past employment.
They are asking for a pay stub or 1099 as proof of employment. I entered this situation as some extra money on the side and was to be a 1099 worker but never made enough money to justify filing. I was paid cash for my final month of employment January 2015. The total amount of payment for the year was under $600 so I did not file a return. The same hold true for 2014 where I did not receive more than $600, all in cash, and did not report as was not necessary. ==========>> Some EEs/ ERs try to avoid taxes by paying/ getting paid under the table As a 1099 worker, in general, UNLESS the amount reported on your Sch C of 1040 line 29 / 31 is $400 or exceeds $400 , you do not need to file return;however, you still may file your return to claim your net operating loss ( your tax deductions are greater than your taxable income, resulting in a negative taxable income) as a self employer;you( If you want) can use a business loss to offset business income for prior or future years. Also, as you said, The IRS requires that your ER needs to send 1099-MISC forms to you to whom he made payments of $600 or more and file with the IRS. So, the payer did not have to send a 1099-MISC to you since he did not pay you $600 or more during a calendar year.
The employer is willing to issue a 1099 and / or pay stub reflecting my time there to assist in the new job verification process but wants to know how to best accomplish this. What is the best way for us to move forward.
======>>I guess it depends; in many cases, it can often be difficult to tell employees and contractors apart. But there are significant differences, both in terms of workers’ personal bottom lines and in the eyes of the I.R.S;simply speaking, aslongas you’re an independent contractor, you usually get a 1099 form. If you’re an employee, you receive a W-2.
It is critical that your ER correctly determines whether you providing services are employee or independent contractor.
Determining if you are an employee vs a contractor is not arbitrary and your employer may be breaking the law by suggesting that you take on the job as an employee if you are a contractor or vice versa. You are not a 1099 contractor aslongas you perform services that can be controlled by your employer ;what will be done and how it will be done. This applies even if you are given freedom of action. What matters is that your employer has the legal right to control the details of how the services are performed. It is essential for an ER to correctly classify whether or not you he is hiring is an W2 EE or an independent contractor. If the ER incorrectly classifies you as an independent contractor rather than an EE, the ER can be held liable for violations of laws that apply to EEs. These laws include general EE protections including wage and hour laws, worker’s compensation, unemployment compensation, disability insurance, social security, and medicare. Some ERs intentionally classify an EE as a contractor to avoid paying these taxes, however, it is illegal. I guess If your ER would like for the IRS to determine whether or not you are considered an employee, he may submit Form SS-8 to the IRS;form SS-8 is used to request a determination from the IRS on status of workers, to determine if they are employees or independent contractors.