Primes/Contractors issue 1099s at the end of the year in most cases.
If the Prime controls time, place, and method and you have no sub contractors or employees yourself, then you are an employee but to have your tax status changed, you need to fill out an SS8 form from the IRS. Once you get a ruling in your favor, and you will, you can then file as an employee and avoid paying double Social Security Tax. The Prime gets stuck with 50% of it.
Beware. Besides burning your bridges with the Prime, you run the risk of having the IRS flag your SS8 application to check to see if you have failed to file your taxes in the last several years. In other words, you will be audited.
Frank Anderson, IMS, (-REDACTED-)
Re: Am I an employee or subcontractor?
Member #: 22668
Registered: 3/29/2003
Posted:
107
Name:
Frank Anderson
Name:
Frank Anderson
Company:
Innovative Marketing Systems
Occupation:
CFO
Location:
Dallas, TX
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