Complex 1099-MISC & W-2 Issue/SS-8 Question

[kaileighrose]

New York

I would like to preface this post by saying I filled out a W-4 when I first began working for this business in July of 2014. The owner wanted me to file as an independent contractor. I declined, and filed as an employee. I never agreed to independent contractor status and was never treated as an independent contractor.

I worked for my previous employer for the entirety of 2015, which operated as a DBA under and S-corp. From January 1st, 2015 until about mid-July, I was paid weekly, but in order to "save money," the owner of the business only used a payroll service every other week. In the weeks she did not use a payroll service, we received untaxed company checks. I received a 1099-MISC for those untaxed weeks (this seems really unlawful to me), and a W-2 from the payroll company for the weeks she actually used them.

In July of 2015, the S-Corp remained intact, but a new DBA was created, and to my knowledge the previous DBA was dissolved (this knowledge comes from email correspondence I had free access to). From the date of this change, lets say mid-July, until the end of the year, I was paid with company checks, with zero taxes taken out. I asked several times to be put back on the payroll service, but the employer failed to comply with my requests. I was issued a 1099-MISC for this income.

It seemed my employer had no intention of issuing me 1099-MISCs for this income until I hounded her for tax forms. Had everything been done by the books, I would be getting about $2,000 BACK. Now I am faced with a hefty tax bill and a much more complex situation that thankfully I can handle.

I intend to file a SS-8 form with the IRS to have this issue corrected. Do I need to file two separate SS-8s for the two DBAs/1099-MISCs, or am I able to include both DBAs on one form? I also know there is a separate form I need to file to actually get the back taxes.

Also, is there anything else I can do to prevent this employer from doing this to future employees? She is very manipulative and honestly doesn't seem to have much business sense.

Thank you for your time!

 

[FlyingRon]

DBAs are fictitious names for another entity. DBAs don't get "dissolved." In fact, their presence can generally be ignored. It's the real underlying entity that they referred to that matters. If the 1099s are for the same real entity, then you only need one SS-8. If there are different (let's say one was a DBA for the S corp and the other was for your employer as a sole proprietor) then you need two.

The SS-8 won't get you any back taxes. First off, YOU are responsible for paying your share of the tax. You are responsible for remitting this as estimated payment (too late now for 2015) if it wasn't withheld. You'll have to settle up for that when you file this year. Fortunately, unless you had self-employment income in 2014 you probably won't be subject to any penalties for being underwithheld.

If you feel you indeed are an employee (you probably are), you can file an 8919 which exempts you from paying what should have been the employer's share of the social security/medicare tax.

 

[LdiJ]

DBAs are fictitious names for another entity. DBAs don't get "dissolved." In fact, their presence can generally be ignored. It's the real underlying entity that they referred to that matters. If the 1099s are for the same real entity, then you only need one SS-8. If there are different (let's say one was a DBA for the S corp and the other was for your employer as a sole proprietor) then you need two.

The SS-8 won't get you any back taxes. First off, YOU are responsible for paying your share of the tax. You are responsible for remitting this as estimated payment (too late now for 2015) if it wasn't withheld. You'll have to settle up for that when you file this year. Fortunately, unless you had self-employment income in 2014 you probably won't be subject to any penalties for being underwithheld.

If you feel you indeed are an employee (you probably are), you can file an 8919 which exempts you from paying what should have been the employer's share of the social security/medicare tax.

There is a more simple answer to the bolded.

If the 1099-Miscs have different Employer Identification Numbers then separate SS-8s need to be filed. If they have the same number, then one is fine. However I would send them in together with a letter explaining that it really was the same employer.