Spoke with my CPA Friday and he said the IRS was putting over 2000 more agents on the lose to look at whether you are a sub-contractor (1099) or an employee. Guess which one the IRS wants you to be. Can you say double taxation.
1099 or employee
Discussion in 'Trucker Taxes and Truck Financing' started by keywestwego, Jan 6, 2013.
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Which one?
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From what my CPA says, the IRS wants everyone to be an employee. They get more taxes that way.
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irs prefers that you are on a W2 but its still legal for me to hire drivers on a 1099
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How is that double taxation ? You are only taxed once.
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As I understand it....you are only taxed once AND the employer is taxed on the same money. They pay into Workers Comp and SS on the same money. Just the messenger, not an accountant.
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On 1099 the employers do not pay into Social Security, Unemployment, and Workers Comp. The employee is getting short-changed there.The employer is not taxed on the money, he deducts it as an expense.You show it as income and are taxed on it.
CondoCruiser and aiwiron Thank this. -
I quit my job to go work for another this year as 1099 work...I did it for a month...got 4 checks out of it...and then went back to the job I quit , where it was a W-2. How does this work? Sorry if its a dumb question...but when I go and file my taxes...how will everything get deducted?
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There were no deductions on the 1099 stuff. The Federal Income Tax, any state income tax,and Social Security will ALL be paid by you.
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So when I go to file my taxes , this will automaticaly be done? As being done , I mean the money I owe from the 1099 being took from the money I'm supposed to receive back?
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