1099 vs W2 | IRS Cracks Down on Employee vs Contractor Rules

[@LYFEAccounting]

Suggested video to watch next: How to Pay Your Employees in a Small Business: kzbin.info/www/bejne/oZzHi5alit-DqKs

[@markmclaughlin2690]

I was a 1099 employee from March 2019 to June 2021. I worked for consultation firm. We should have been employees not “ independent contractors”. Our work schedule was strictly dictated to us. We worked in the office the firm had, and used only the equipment they provided. Every thing we did was monitored call volume, contracts sent, contracts closed. The business controlled all aspects of our work. We were paid a set rate (salary). If you needed a day off you had to request it 14 days in advance, if you requested it 13 days in advance you were not allowed to take the day off. We were provided vacation time to be taken at the time in which they allowed. The employer provided us a contract that they drafted.

[@AncientOne222]

Get a lawyer and sue for unpaid overtime wages, if you win your case your unpaid wages will be paid to you x2 and your employer will have to pay your attorney fees. You have three years to file so find a lawyer asap *wage lawyer*

[@GojiCenter]

Good to know. especially now that we might start hiring full time employees. Thanks for the valuable info as always.

[@LYFEAccounting]

Any time! Please consider subscribing to our channel :)

[@GojiCenter]

@@LYFEAccounting way ahead of ya. subscribed eons ago

[@nikkirichie2012]

Great video! I’m the owner of a small trucking company . I’m about to hire my first driver. I’ve heard that hiring employees under Per Diem for certain expenses of having employees is a happy medium and can minimize taxes for both employee and business owners. Could you make a video explaining benefits of per diem pay and how it classifies? Thanks!

[@waterfirelord]

That make sense.

[@michaelcollins8316]

I like your video however you should change the 1099-MISC to a 1099-NEC, seeing that’s what the IRS is now looking for. You may want to do a video on what a person can do if they think they are mis-classified. Again a very well done video.

[@timslocum145]

That's really good to know, now I know I need to file as a miscalculation as he was paying me as a contractor but in reality I never was I was an employee

[@LYFEAccounting]

👀

[@Em_Powell_KC]

I have definitely been on a 1099 when I shouldn't have been! Watched your video because a friend is wanting to ask her boss if she can reduce her hours and be a 1099, and I'm like "you do not meet those qualifications" not my business though.

[@yvonnesunday7444]

Hi Crystal! Great explanation! Could you also explain the statutory employee and statutory non employee.

[@gflow1230]

wow , very educational, thank you

[@LYFEAccounting]

Thanks for watching. Hope you consider subscribing?

[@jimmydeloso6528]

Hi Madam Crystal. Thank you for the info and knowledge. God bless you.

[@LYFEAccounting]

Thanks so much for watching Jimmy :)

[@mikeschein1416]

What about commission payed employee

[@negativeanthony]

Too many "employers" misclassify contractors. Why not enough is done about it...I will never understand.

[@mervyngreene6687]

A number of corporations started labeling people who used to be employees as independent contractors. Corporations like this because they avoided providing benefits and certain withholding. A lot of people prefer being contractors because they get more money upfront. Also, as contractors, there are expenses, etc that employees can't. However, they do not get a lot of benefits.

[@truther001]

@@mervyngreene6687 Nah. It's a huge tax break for the employers by sticking it to the employees.

[@TheNeXTGUI]

What are the differences between the 1099-MISC and 1099-NEC and which would be better for the worker?

[@VelvetCrone]

and... if you were clearly an employee paid as a contractor? what are the options? what recourse?

[@tmijr8182]

I’m a 1099G holder and I still ain’t see my money for monthssssss waiting still it says government pay December 20th sheesh been waiting since March last month

[@swirlgirl9480]

I'm a rideshare driving I just got a letter saying I owe 11,000 for my taxes, penalties and late fees I did my own taxes so I need the irs to tell me what's going on

[@vicmed6088]

There’s alot of truckers that lease on to companies, they get paid with a 1099, this is going to push them out, truckers move stuff for you people to buy at stores

[@peach53]

If you fill out a form SS-8, is it anonymous?

[@GodisAgapelove4172]

Can an independent contractor tax cash app payments that were bonus not checks?

[@jacquelinegarrison8277]

If you are a contractor but the owner gets to claim the IRS Credits, what do that leave you with. For instance a Logistic job. Who claims the miles, the owner or contractor? The contractor is the driver.

[@jacquelinegarrison6718]

Thank you. No I never got a reply.

[@LJohn1215]

Hello I have 2 questions 1. What payroll service would you recommend if you are a single member LLC, but you subcontract out a lot of work? 2. If your business is required to do a percentage of a job, are you saying I can use contractors as W-2 employees through VTSC?

[@Em_Powell_KC]

Hire a book keeper! I love ADP and wanted my last employer to switch to that (I was in the accounting department) but they felt it was too expensive.

[@cathyrobi3891]

I'm being asked to provide paystub(s), W-2(s), 1099(s), or IRS Wage and Income Tax Transcript(s) for the first and last years of employment for all my past jobs for employment ..is this normal for the hiring process for a low level job? I've never been asked this before

[@luisrodriguez9910]

I was w2 from 2011 to 2015 and then they change to 1099 what can I do

[@happyplace9419]

Great channel, great content! Could I ask a quick question? Say someone has a consulting business (sole prop) focused on teaching. The first part of the income is from teaching part-time at a college as a 1099 contractor. The second part of the income is teaching part-time at a different college as a W-2 employee. Question is…can you include both as income for the same business and deduct applicable expenses for both through the consulting business? Thank you for any insight you may have!

[@mtigress4589]

The W2 income can't be included with your business. Also, the fact that you're considered a ln consultant teaching part time at the other college is also questionable. What is different from your arrangement than other w2 workers.

[@happyplace9419]

@@mtigress4589 Thanks for the response. I am an Adjunct Professor meaning that I just teach a class now and then for a flat rate. Not full-time with salary and benefits. Most universities will send you a 1099 but this one makes you go through the employment process and you get a W-2.

[@happyplace9419]

@@mtigress4589 by the way, is there any way to deduct the tuition and other costs for the doctorate degree I’m pursuing? I don’t mean the small tax credits like the LLC, I mean the whole amount as a business expense. Thank you!

[@ldmaze517]

That would be commingling. W2 is considered your own personal funds while the other is a Contractional agreement with the Contractor. The contractor gives you an assignment that you both agree upon that you will accomplish or complete by a certain date, it's no different from a Sub-contractor working with a General Contractor. Say for instances you are the Sub-Contractor and you have employees. The General Contractors has no say over the employees that you hired because his Contract is with you and not your employees.

[@ashton70357]

I have some very specific questions, I think it would bring a lot of attention to your page from my industry. You think I could request a video on what would our role may be? We are called contractors and hired for our expertise and accreditation but still paid as w2. We have to follow company policies and procedures but our expertise is a requirement due to the nature of our job. We are also denied benefits beings we are "seasonal" employees and the employer only hires us for one projects duration at a time and duration is contingent on their work load. Some companies hire me 1099 but most hire us as w2 employees but with the same stipulations as stated above.

[@bellag4378]

I was hired as a admin assistant and she controlled every aspect of my salary my job and I used everything in her office and she classified me as a contract and now I have to pay back all fishy

[@drwombat]

Hey girl! Fan-TASTIC channel... Love the sharing of knowledge... I was researching ( in layman's terms bc I know nothing about all this stuff ) if it was possible to just start a company as an individual and have my employer pay me 1099 so I could do things like write off my fuel, vehicle and other depreciation, business assets and their depreciations (PC, phone, tablets, etc) and came across something (prob here on YT) that said, basically, that the IRS has this metric or rule where they compare your incoming money in some particular fashion and if it is "more like this or more like that" it gets "ruled" we regular w4 taxable income and you might be at risk for fraud... Does this sound familiar to you at all? And if you have heard of this, do you know what rules/metrics they were referring to? I believe the info talked about a specific IRS word/definition and there were two categories and about 5-6 different check list items that either qualified you or disparities your income as being actually able to be "declared" into a 1099 (or other company-like tax structure) This rabbit hole dawned on me when I started researching why everybody didn't just "create a company and charge the car, gas, depreciation, etc, etc, to the company" to save taxes

[@katoramimmitt3335]

What if teachers have to do a 1099 for a stipend they got for attending job related training

[@PersistentGentleman]

What if you’re employer is riding both sides of the fence?

[@LYFEAccounting]

Can you elaborate?

[@PersistentGentleman]

@@LYFEAccounting my employer have me down as a contractor, but after watching your video I’m an employee.

[@PersistentGentleman]

@@LYFEAccounting any precaution I should take or be aware of?

[@so._.anyways]

I'm in the same circumstance... I'm a sub contractor that is basically am employee. I do a job that is controlled by my superiors and I have scheduled breaks... but I'm paid like a contractor. fml

[@jumaanerobinsonsr5736]

How much did you have yo pay a private contractor to during a year to file it...

[@LYFEAccounting]

$600 or more

[@gindie1]

You showed a 1099-MISC in this video. Isn't a 1099-NEC the form to now use for Non-Employee Compensation?

[@LYFEAccounting]

Yes, good catch. 1099-Nec is the new form. Thank you!

[@ModernGoddess81]

What’s the difference between the two? Is the 1099 Misc still being used?

[@gindie1]

@@ModernGoddess81 Yes, the 1099-MISC is still being used, for purposes OTHER than "non-employee compensation" (the old Box 7). The 1099-NEC (NEC stands for non-employee compensation) performs the function of the Box 7 in the old 1099-MISC

[@ModernGoddess81]

@@gindie1 when did that start? For 2020 I was given the Misc?also what would the purpose of even using a 1099-MISC anymore?

[@gindie1]

@@ModernGoddess81 I believe tax year 2020 (distributed in 2021) was the first year. The MISC has several other boxes for other purposes.

[@barbar9919]

O this is the best news maby I can find out who filed unemp on me and my identity

[@GhjJahshshsj]

How about Uber & Lyft & grubhub & instacart ext … drivers ?? It seems like they are controlling drivers . Thanks in advance

[@LYFEAccounting]

They are considered 1099.

[@cheerio3579]

Exactly! If I own the company; I’m going to put out guidelines to follow! It’s called protect your brand!

[@MeneTekelUpharsin]

Do LLC partnerships also needs to pay FUTA or is that just for W-2 jobs?

[@LYFEAccounting]

If the partnership pays w-2 employees, then yes, FUTA payments are required

[@billwylie3763]

That tax crap was a joke the last 15 years I worked I couldn't get nobody to match my ss and when I got one to take taxs out he didn't pay the government we all got screwed they told us to sue him I just 1099 the rest of my career.

[@Flawedbutfabulousone]

What about for caterers? if I wanted to hire staff for events and pay them per event would that be considered a 1099 contracted employee??

[@hedga001]

That would be considered more of a 1099-nec contractor because it falls more under freelance work.

[@danvisjones9401]

Just sue them for invading your privacy along with banks or none govt agency immediately

[@ronaldramsumair938]

You are the most beautiful cpa I ever seen

[@garythomas3660]

@9:11 😊😊😊 yes, I hope every wicked employer lose their company for taking advantage of real and honest hardworking people!!!

[@stewslogisticsllc9460]

So with this being said, can I bring up to the IRS businesses that I’ve worked for that classified me as a contractor when I really was controlled at every aspect of what to do?

[@Trilldreamr]

Snitching

[@maxcookiep4397]

Here’s a solution instead of dealing with all of this crap that they are generating close your business an head oversea.

[@mandadawn3569]

Sooo hiring our kids as an???

[@LYFEAccounting]

Employee

[@1987whitez]

Is that your real hair?

[@LYFEAccounting]

yes, it's the editing

[@exgamer3806]

You got Instagram?

[@fields1336]

Shawty Prudy...♥️

[@BeachbumBrianCampbell]

She is beautiful, smart and knows money. Her husband is a lucky guy.

[@anilagrawal9277]

How can I get rich and No's to your answer are 1, No Job . 2, Just wanna be Lazy and just chill . Just like a thought : No answers . Ha .

[@LYFEAccounting]

You can actually be lazy and chill one day, IF you are willing to FIRST work hard and build up enough passive income to support your lifestyle

[@vicmed6088]

California is getting out of hand,democrats don’t know when to stop,

[@domp5053]

...🗣🔥L🅰️🔥❗...

[@LYFEAccounting]

Hmm what exactly does this mean?

[@off_doff]

You’re beautiful as hell

[@stevenundzid4765]

You think hell is beautiful

[@lailak482]

PPP SCAMMERS UR TIME IS UP🤣🤣🤣🤣🤣

[@LYFEAccounting]

💯

[@derrickhead]

mommy fine

[@blackdiamond4761]

The IRS is now the treasure. Do your research.