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liquidheart
03-09-2006, 09:33 AM
I was wondering what the requirements are for someone to have 1099 status. My fiance was hired as an employee for a car dealership as a detail manager. They then told him that he should have a 1099, even though nothing changed. He still used their space, chemicals, equipment, etc. I'm just wondering what the advantages were for the company, if any. Also, should he get a statement from the company for tax purposes, like a W-2? Thanks!

LaborLawNJ
03-09-2006, 10:15 AM
"He still used their space, chemicals, equipment, etc. I'm just wondering what the advantages were for the company, if any"

This is a common tactic of employers. They improperly misclassify employess as 1099 independent contractors for several advantages: (1) not obligated to pay them over-time (2) save on the "employer burden" (payroll taxes, UI contributions, Social Security contributions) (3) can potentially save on workmens compensation premiums. The list goes on and on.

"Also, should he get a statement from the company for tax purposes, like a W-2? Thanks!"

Maybe. If he was considered an employee and then was switched to a 1099, then he should get a W-2 for the period of time he was not a 1099.

Otherwise, 1099 = independent contractor and he will not get a W-2, the 1099 is his earnings statement.

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