So I am assuming my employer is considering me an employee because I received a W2 from him, with taxes and all that good stuff taken out. However, I also got a bonus this year, which is on a 1099-MISC (line 7 filled out). TurboTax is now telling me that I have to file a SS-8 form because the employer gave me both a W2 and a 1099-MISC.

Is this right?
I'm not really sure what to do... any help would be greatly appreciated!
Thanks!

You may file SS-8 if you are looking for a new job.

On W2 the employer must withhold Social Security and Medicare taxes.
On 1099-misc, you will pay 15.3% SE tax instead of 7.65% withheld from W2 income. Thus you pay about 7.5% more. The advantage of getting 1099-misc is that you can directly deduct your business related expenses on schedule C or C-EZ. On W2, you can take business related expenses only as itemized deduction W2 vs 1099-Misc income Your U.S. Tax Return: W2 vs 1099-Misc: Employee vs Independent Contractor.

Thanks MukatA!

One more question... on TurboTax should I just put it under the "other income" area then, rather than 1099-MISC area?

Thanks again!

If I were you I would follow Turbo-Tax's lead on this. As Mukata says - you may very well owe SS tax on this bonus, and reporting it as "other income" would miss that. The SS-8 is a form that indicates that you want the IRS to review why your employer issues a 1099-MISC for the bonus rather than a W-2. Prizes and awards for employees are supposed to be reported on W-2, so this is a strange thing that your empoyer did, and now they are trying to make you liable to pay the empoyer's portion of the SS tax. Did they possibly give you this bonus PRIOR to your being employed by them?

Nope I had been working with them for a full year. And got it before I left for Christmas.
I had emailed my boss about it, and he said he was going to ask his accountant, but he isn't in today. How convenient from him. LOL

Thanks!

You will pay SE tax on the bonus income. If you can get rid of SE tax, everyone will want to be an independent contractor instead of a regular employee.