Tax question... 1099??

Sorry to sound stupid, but im not quite sure why I got a 1099 from my employer. I have never gotten one before, always w-2's. Do I file it differently than a w-2? anyone have any ideas?

Nevermind, I got it wrong, too.

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Posted by Robeymuse

I believe 1099s are for contractors...my DH used to get a 1099 for his old job..and would have to pay the taxes afterwards..it wasn't taken out ahead of time.

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Okay here you go...

1099s and Taxes
When a person is paid on the form, 1099-misc, all money earned by the individual is paid on an untaxed basis. It is then the responsibility of the individual to file and pay the appropriate taxes. These taxes can be owed to Federal, State and Local governments. Workers compensation and unemployment issues also must be addressed independently.

W-2s and Taxes
When a person is paid on the form W-2, the employer automatically withholds and pays all of the necessary employee income taxes as required by the IRS. These taxes include: Federal Income Tax, State Income Tax, and FICA (Social Security and Medicare). In addition, the employer will pay all of the necessary employer taxes. These taxes include: FICA (Social Security and Medicare), FUTA (Federal Unemployment Tax), and SUI (State Unemployment Tax).

The IRS and Taxes
In recent years, the IRS has begun to realize the large sums of potential tax revenue they are losing due to misclassified 1099 independent contractors who should legally be W-2 employees. When a company pays a contractor on a 1099-misc form, they avoid the following: federal and state tax withholdings, deposits and reports, the employer’s share of Social Security and Medicare taxes, state and federal unemployment insurance premiums, state disability insurance premiums, Workers’ Compensation costs, fringe benefits, vicarious liability for employee negligence, and EEOC regulations. The IRS estimates that it loses between $4 to $20 billion per year in unpaid taxes as a result of this misclassification problem. Understandably, the IRS has made it a priority to investigate 1099-misc forms that are turned in at the end of the tax year. The IRS is continually conducting audits to determine whether or not contractors are being properly classified.


EDITED TO ADD:
you employer (the caterer) is not taking taxes out when they pay you. You are going to have to file the taxes for that money.