1099 form and independent contractor questions ?
1099 form and independent contractor questions ?
my husband has been laid off for a few months and he cannot find a job.. however I found a job for him online but its as a independent contractor it doesnt pay much but hey its a job! hes currently receiving unemployment.. the job requires for him to use his social for tax puposes my question is he has to go through training in which he will not be paid for, so if he uses his social to fill out the 1099 form but is not getting paid yet should he report that to unemployment or should he wait till he actually gets paid and then report it to unemplyment? or would they already no since he completed the 1099 form?
Answers:
Cat: Giving is social is so they can report his earning to the IRS at the end of the year.
He should report actual earnings to unemployment as he receives them.
2008-09-29 20:54:30
2008-09-29 20:54:30
Chosen Answer
wartz: Is he going to be a real independent contractor or an employee misclassified as an independent contractor? Many unethical employers misclassify employees to avoid paying employment tax and workers compensation insurance. If the job "doesn't pay much" that is an indication that he is not really an independent contractor. Download IRS Form SS-8 and send it to IRS for a ruling on his status. If IRS says he is an employee, he will only have to pay the employee half of social security and Medicare taxes and can file a claim for unemployment if he loses this job.
2008-09-29 21:56:33
wartz: Is he going to be a real independent contractor or an employee misclassified as an independent contractor? Many unethical employers misclassify employees to avoid paying employment tax and workers compensation insurance. If the job "doesn't pay much" that is an indication that he is not really an independent contractor. Download IRS Form SS-8 and send it to IRS for a ruling on his status. If IRS says he is an employee, he will only have to pay the employee half of social security and Medicare taxes and can file a claim for unemployment if he loses this job.
2008-09-29 21:56:33
Clark Kent: Giving a SSN for a 1099 does not even mean that a 1099 will be issued.
He will still be unemployed for Unemployment insurance until he begins drawing some money. If he makes over $ 600 by the end of the year, a form 1099 will go to the IRS.
2008-09-30 04:13:03
2008-09-30 04:13:03