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My employer recently switched our salon workers from W-2 to 1099 for our taxes. We are in Illinois and we did not receive a pay raise. However, our taxes increased because we have to file 1099 now so we pay our full social security tax. Also the owners still control our hours, vacation, and we have no benefits. They also control our clients and hire assistants to help us. We make 40% commission only and now our taxes have increased with the 1099. Is this correct?
ANSWER
The BIDaWIZ Team's Answer:
Have any of your roles for the workplace changed? If you were once a W-2 employee and recently switched to a 1099 because your employer can't afford payroll taxes, then that's certainly a serious issue. You can tell them that if you are incorrectly classified as 1099 employee, they are at greater risk for an audit and penalties. For them to be certain, they should file a form SS-8 with the IRS.
