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View Full Version : Can a company give both a w-2 and a 1099 to the same employee?


helpmeplease852
Jan 22, 2009, 02:23 PM
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
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. (http://taxipay.blogspot.com/2008/03/w2-or-1099-employee-or-independent.html)

Mobea
Jan 23, 2009, 07:43 AM
Good answer