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    helpmeplease852's Avatar
    helpmeplease852 Posts: 1, Reputation: 1
    New Member
     
    #1

    Jan 22, 2009, 02:23 PM
    Can a company give both a w-2 and a 1099 to the same employee?
    Just want to know what I should do. I worked for a company that paid me a salary plus commission. The salary was done through Paychex so I go a W2 for that but did not get anything else. Can or should they give me a 1099 for the commission? If I claim it won't I have to pay self employment tax? And is that legal for the employer to not pay matching taxes for an employee? Thanks in advance!!
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #2

    Jan 23, 2009, 12:14 AM

    Many companies do this. Now you must report 1099-misc on schedule C or C-EZ and pay SE tax at 15.3% (which is your share as well as employee's share of FICA taxes). Thus you pay about 7.5% more than a W2 employee.

    But there are many advantages of getting 1099-misc. You can directly deduct your business related expenses on schedule C instead of taking itemized deduction.
    Read: Your U.S. Tax Return: W2 vs 1099-Misc: Employee vs Independent Contractor.
    Mobea's Avatar
    Mobea Posts: 220, Reputation: 15
    Full Member
     
    #3

    Jan 23, 2009, 07:43 AM

    Good answer

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