Tax Deductions For 1099 Employees
February 5th, 2010Question: Can I still collect unemployment if I was on a 1099?
I was working for this mortgage company last year for about 6 months. I had set hours, Monday-Friday from 9am-5pm & a 1hour lunch. I was on salary, every single month I got paid the same amount. I recall asking them why I did not have a pay stub showing all my deductions, & why they were not taking any thing out of my check. They told me that this is how they paid all their employee’s, (When I was hired I was hired as their employee not as an individual contractor) & that at tax time they would send me a form to do my taxes called a 1099. When I did my taxes I did not need to pay the state any money. I did not know this but apparently employers can NOT do that, they can not tell the government (edd, irs etc) that you are an individual contractor & when in reality your just a regular employee. Now when I called EDD they told me there are no wages that were reported for last year from that employer who had me on a 1099. How can I fight this & get unemployment!!!?
Answer: no, because employer did not pay into insurance fund. there are no deductions for people on 1099.
BBB advises: Choose qualified tax professional
This week’s column was chosen for three reasons. First, Feb. 1 was the deadline for businesses to provide W-2 forms to their employees. Second, advertising campaigns have started that give the BBB cause for concern. Third, it was suggested by a tax preparer (who reads my column). Many thanks.
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