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    denmo502's Avatar
    denmo502 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 13, 2008, 01:10 PM
    W2 & 1099 for wages
    Can a employer issue a w2 & 1099 for wages on a independent contractor turned employee. And an employee turned independent contractor in the same year receiving a w2 & 1099 for wages.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Aug 13, 2008, 08:10 PM
    The 1099-misc income is reported on schedule C or C-EZ (Form 1040). You can deduct your expenses. Net income is subject to 15.3% SE tax.
    How you will treat the 1099-Misc income, read: Your U.S. Tax Return: W2 vs 1099-Misc: Employee vs Independent Contractor.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Aug 14, 2008, 08:50 AM
    You would have to determine on what date the employee became an independent contractor, and vice versa.

    You then issue the W-2 for the salary earned while and employee, and the Form 1099-MISC for the income paid while an independent contractor.

    Also, the SE tax percentage is 15.3%, with a $104K cap on 12.4%. The remaining 2.9% has NO CAP at all.
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