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  #1 (permalink)  
Old 01-31-2018, 02:48 PM
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Join Date: Jan 2018
Posts: 3
Should I have received some kind of tax form (e.g. 1099)?

Sorry if this is in the wrong place.

I was offered a work-from-home position with a company, making sales calls and doing some tele-fundraising stuff. When I was being hired I was asked for my SSN and was constantly told I would receive my contract soon. I never did.

I was paid via Paypal, $8 an hour, and Paypal took out a fee for each payment I received. I made around $800 altogether, before they stopped giving me jobs as it was cheaper to just pay their employees from poorer countries who were willing to take $2 an hour.

When working, they installed the programs onto my laptop, all I had to do was get a headset. My hours were logged on their system. I couldn't view my hours, it was just in their records, so I just had to trust them to pay me correctly, especially since I didn't receive a payslip that included my hours worked or anything.

I was expecting to receive a 1099-MISC, as I do for all my other sub-contract jobs, but I didn't receive anything.

I messaged my old manager who said I would get a tax form from Paypal if I made over a certain amount. Paypal confirmed I hadn't made over the amount at which they send out any tax forms.

That was that. So... what do I do when filing my taxes for this work? Do I just file under Schedule-C and put it under gross receipts? Seems a bit weird that the company that paid me as a sub-contractor and who I advertised for doesn't send out 1099s.

I searched the business name on the Taxable Entity Search page and they only came up under the abbreviated version of their business, and the status was "FRANCHISE TAX INVOLUNTARILY ENDED". I've tried contacting the owner of the company about what tax forms I should be filing, but she's ignoring me entirely.



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Old 01-31-2018, 10:11 PM
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Posts: 5,258
That was that. So... what do I do when filing my taxes for this work? ==========>>Totally confusing situation; It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors.aslongas you are a regular EE, employee, then you usually receive a W2 from your ER, employer unless you have an independent biz ;so, You should only receive a W-2 if you are a regular EE. If you are an independent contractor or self-employed, the work you do may be the same as an EE, but you will receive an earnings statement on a Form 1099 rather than a W-2.If you are a self employer then you need to submit form W9 to the payoer/ER and the payer/ER needs to issue you a 1099-MISC; Generally, you, actually your ER, must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to you. Your ER does not generally have to withhold or pay any taxes on payments to you if you are a independent contractor.
You need to ask them if you are a reg EE or a contractor. If you are a contractor thrn youneed a 1099MISC from your ER to file your return with the IRS/your home state; if you re a reg EE, then they need to send you a W2.


Do I just file under Schedule-C and put it under gross receipts? Seems a bit weird that the company that paid me as a sub-contractor and who I advertised for doesn't send out 1099s. -========>>as mentioned above;as said, It depends on how you?re paid and the type of year-end form you receive from the person or business that paid you.
If you?re an employee , then, You?ve received a W-2 from your employer ,usually in January or early February; Your employer took Social Security and Medicare taxes out of your paycheck each payday.
If you?re an independent contractor, then, You?ve received a 1099-MISC with a dollar amount in Box 7 ,Nonemployee compensation.The payments you received were for the full amount you earned, nothing was deducted for FICA.
1.

I searched the business name on the Taxable Entity Search page and they only came up under the abbreviated version of their business, and the status was "FRANCHISE TAX INVOLUNTARILY ENDED". I've tried contacting the owner of the company about what tax forms I should be filing, but she's ignoring me entirely.========> It?s important businesses correctly classify the individuals working with them as employees or independent contractors.Misclassification of an individual can result in fines, penalties, and payment of back taxes as well as owed minimum wage or overtime payments for any individuals determined to be employees. Misclassifying you as an independent contractor saves the company you work for time and money but it hurts you and the rest of your community. What you can do if you think you've been misclassified, thren, First, you can speak to your boss and see if they will review your classification and make any necessary changes. You should tell your boss that you think paying you as an independent contractor is against the law before you contact the IRS, the Department of Labor, or the Workers' Compensation Board. Or If it's not possible to speak to your boss, or if you've already tried to speak to your boss but haven't had any luck, you can ask the IRS to review your case. Request this assistance by submitting Form SS-8. After this,You can file your tax return along with Form 8919 . This form allows you to pay only your portion of the payroll taxes if you believe you have been wrongly classified. You can do this in addition to Form SS-8 . If the IRS audits this return and decides that you are not an EE, you can then bring your case to Appeals and eventually Tax Court. However, you must be able to claim one of the reasons below before you can file
Form 8919;You filed a Form SS-8 and the IRS has determined that you are an EE; You were previously treated as an EE by this boss and you are performing services in a substantially similar way and under substantially similar direction and control;Your co-workers, performing very similar services under similar direction and control, are treated as EEs;Your co-workers, performing very similar services under similar direction and control, filed Form SS-8 for this boss and received a determination that they were EEs; You filed Form SS-8 with the IRS and have not received a reply



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  #3 (permalink)  
Old 02-01-2018, 03:37 PM
Junior Member
 
Join Date: Jan 2018
Posts: 3
Quote:
Originally Posted by Wnhough View Post
That was that. So... what do I do when filing my taxes for this work? ==========>>Totally confusing situation; It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors.aslongas you are a regular EE, employee, then you usually receive a W2 from your ER, employer unless you have an independent biz ;so, You should only receive a W-2 if you are a regular EE. If you are an independent contractor or self-employed, the work you do may be the same as an EE, but you will receive an earnings statement on a Form 1099 rather than a W-2.If you are a self employer then you need to submit form W9 to the payoer/ER and the payer/ER needs to issue you a 1099-MISC; Generally, you, actually your ER, must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to you. Your ER does not generally have to withhold or pay any taxes on payments to you if you are a independent contractor.
You need to ask them if you are a reg EE or a contractor. If you are a contractor thrn youneed a 1099MISC from your ER to file your return with the IRS/your home state; if you re a reg EE, then they need to send you a W2.


Do I just file under Schedule-C and put it under gross receipts? Seems a bit weird that the company that paid me as a sub-contractor and who I advertised for doesn't send out 1099s. -========>>as mentioned above;as said, It depends on how you?re paid and the type of year-end form you receive from the person or business that paid you.
If you?re an employee , then, You?ve received a W-2 from your employer ,usually in January or early February; Your employer took Social Security and Medicare taxes out of your paycheck each payday.
If you?re an independent contractor, then, You?ve received a 1099-MISC with a dollar amount in Box 7 ,Nonemployee compensation.The payments you received were for the full amount you earned, nothing was deducted for FICA.
1.

I searched the business name on the Taxable Entity Search page and they only came up under the abbreviated version of their business, and the status was "FRANCHISE TAX INVOLUNTARILY ENDED". I've tried contacting the owner of the company about what tax forms I should be filing, but she's ignoring me entirely.========> It?s important businesses correctly classify the individuals working with them as employees or independent contractors.Misclassification of an individual can result in fines, penalties, and payment of back taxes as well as owed minimum wage or overtime payments for any individuals determined to be employees. Misclassifying you as an independent contractor saves the company you work for time and money but it hurts you and the rest of your community. What you can do if you think you've been misclassified, thren, First, you can speak to your boss and see if they will review your classification and make any necessary changes. You should tell your boss that you think paying you as an independent contractor is against the law before you contact the IRS, the Department of Labor, or the Workers' Compensation Board. Or If it's not possible to speak to your boss, or if you've already tried to speak to your boss but haven't had any luck, you can ask the IRS to review your case. Request this assistance by submitting Form SS-8. After this,You can file your tax return along with Form 8919 . This form allows you to pay only your portion of the payroll taxes if you believe you have been wrongly classified. You can do this in addition to Form SS-8 . If the IRS audits this return and decides that you are not an EE, you can then bring your case to Appeals and eventually Tax Court. However, you must be able to claim one of the reasons below before you can file
Form 8919;You filed a Form SS-8 and the IRS has determined that you are an EE; You were previously treated as an EE by this boss and you are performing services in a substantially similar way and under substantially similar direction and control;Your co-workers, performing very similar services under similar direction and control, are treated as EEs;Your co-workers, performing very similar services under similar direction and control, filed Form SS-8 for this boss and received a determination that they were EEs; You filed Form SS-8 with the IRS and have not received a reply

Thanks for the info.

Question: How do you determine if you're a contractor who receives a 1099, or a business owner who files a Schedule C without a 1099?

The company owner responded to me, saying "I did not pay you, Paypal paid you, so any tax forms would be from Paypal." I didn't work for Paypal, and my payments all came directly from my owner's personal email address. Paypal told me that they do send tax forms if you make $20k in a year, but even so, they tend to be for people who are making independent sales to customers, not someone who is simply paid for work by a single company via Paypal, and that I should have got a tax form from the company (as I did with the other company I'm a contractor for).



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  #4 (permalink)  
Old 02-01-2018, 03:38 PM
Junior Member
 
Join Date: Jan 2018
Posts: 3
Quote:
Originally Posted by Wnhough View Post
That was that. So... what do I do when filing my taxes for this work? ==========>>Totally confusing situation; It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors.aslongas you are a regular EE, employee, then you usually receive a W2 from your ER, employer unless you have an independent biz ;so, You should only receive a W-2 if you are a regular EE. If you are an independent contractor or self-employed, the work you do may be the same as an EE, but you will receive an earnings statement on a Form 1099 rather than a W-2.If you are a self employer then you need to submit form W9 to the payoer/ER and the payer/ER needs to issue you a 1099-MISC; Generally, you, actually your ER, must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to you. Your ER does not generally have to withhold or pay any taxes on payments to you if you are a independent contractor.
You need to ask them if you are a reg EE or a contractor. If you are a contractor thrn youneed a 1099MISC from your ER to file your return with the IRS/your home state; if you re a reg EE, then they need to send you a W2.


Do I just file under Schedule-C and put it under gross receipts? Seems a bit weird that the company that paid me as a sub-contractor and who I advertised for doesn't send out 1099s. -========>>as mentioned above;as said, It depends on how you?re paid and the type of year-end form you receive from the person or business that paid you.
If you?re an employee , then, You?ve received a W-2 from your employer ,usually in January or early February; Your employer took Social Security and Medicare taxes out of your paycheck each payday.
If you?re an independent contractor, then, You?ve received a 1099-MISC with a dollar amount in Box 7 ,Nonemployee compensation.The payments you received were for the full amount you earned, nothing was deducted for FICA.
1.

I searched the business name on the Taxable Entity Search page and they only came up under the abbreviated version of their business, and the status was "FRANCHISE TAX INVOLUNTARILY ENDED". I've tried contacting the owner of the company about what tax forms I should be filing, but she's ignoring me entirely.========> It?s important businesses correctly classify the individuals working with them as employees or independent contractors.Misclassification of an individual can result in fines, penalties, and payment of back taxes as well as owed minimum wage or overtime payments for any individuals determined to be employees. Misclassifying you as an independent contractor saves the company you work for time and money but it hurts you and the rest of your community. What you can do if you think you've been misclassified, thren, First, you can speak to your boss and see if they will review your classification and make any necessary changes. You should tell your boss that you think paying you as an independent contractor is against the law before you contact the IRS, the Department of Labor, or the Workers' Compensation Board. Or If it's not possible to speak to your boss, or if you've already tried to speak to your boss but haven't had any luck, you can ask the IRS to review your case. Request this assistance by submitting Form SS-8. After this,You can file your tax return along with Form 8919 . This form allows you to pay only your portion of the payroll taxes if you believe you have been wrongly classified. You can do this in addition to Form SS-8 . If the IRS audits this return and decides that you are not an EE, you can then bring your case to Appeals and eventually Tax Court. However, you must be able to claim one of the reasons below before you can file
Form 8919;You filed a Form SS-8 and the IRS has determined that you are an EE; You were previously treated as an EE by this boss and you are performing services in a substantially similar way and under substantially similar direction and control;Your co-workers, performing very similar services under similar direction and control, are treated as EEs;Your co-workers, performing very similar services under similar direction and control, filed Form SS-8 for this boss and received a determination that they were EEs; You filed Form SS-8 with the IRS and have not received a reply

Thanks for the info.

Question: How do you determine if you're a contractor who receives a 1099, or a business owner who files a Schedule C without a 1099?

The company owner responded to me, saying "I did not pay you, Paypal paid you, so any tax forms would be from Paypal." I didn't work for Paypal, and my payments all came directly from my owner's personal email address. Paypal told me that they do send tax forms if you make $20k in a year, but even so, they tend to be for people who are making independent sales to customers, not someone who is simply paid for work by a single company via Paypal, and that I should have got a tax form from the company (as I did with the other company I'm a contractor for).



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  #5 (permalink)  
Old 02-02-2018, 04:09 AM
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Join Date: Oct 2010
Posts: 5,258
Question: How do you determine if you're a contractor who receives a 1099, or a business owner who files a Schedule C without a 1099? =========>>actually, You don't need a 1099 you may file from your records, and claim your eligible expenses, on sch C;so, No, you do not need to receive the 1099. Your sch C should report all income you made for that particular business whether cash, check, or even bartering. Technically, someone going around mowing lawns needs to report this income, and no one I know gets a 1099 mowing lawns





The company owner responded to me, saying "I did not pay you, Paypal paid you, so any tax forms would be from Paypal." I didn't work for Paypal, and my payments all came directly from my owner's personal email address. Paypal told me that they do send tax forms if you make $20k in a year, but even so, they tend to be for people who are making independent sales to customers, not someone who is simply paid for work by a single company via Paypal, and that I should have got a tax form from the company (as I did with the other company I'm a contractor for).========>>correct; say If your small business paid independent contractors or other businesses using PayPal , you do not send them a 1099-MISC form for federal income tax paypal payment companies will handle any required reporting.Those electronic payment providers are required under certain circumstances to send out a different version of the 1099, called the 1099-K; For the most part, people are associating the 1099-K with PayPal. As a third-party payment processor, PayPal is subject to issuing the 1099-K.
The 1099-K is meant to ensure that those that do business online report their income. The issuer sends a copy to the IRS, and a copy to you, for your records. Just like the 1099-MISC, the IRS gets a copy and you get a copy. So it?s not exactly a PayPal 1099-K, but it is a form that many people are going to receive as a result of carrying on business through PayPal.



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