Q&A: What form does my employer need to give us for self employment taxes?
Anne edited the following
Question: What form does my employer need to give us for self employment taxes?
My brother owns a small business, and we are all considered self employed contractors. Now that it is tax time, he asked me what form of W-2 he needs to give all of us (about 8 people), so that we may file our taxes as getting wages from him. I have no idea where to start, the Irs website offers a lot of information, except I don’t really know what I am looking for.
The answer in the following:
Answer by Bostonian In MO
Employers only give out Form W-2. The law and the facts at hand determine if you are an employee or an independent contractor. If you work a set schedule, doing tasks that he assigns, using his tools and work methods and under his supervision then you are employees, not contractors.
Without knowing the specifics about the business and what you all do it’s not possible to make a hard call here, but in the vast majority of cases where the IRS gets involved, independent contractors are actually employees and must be handled as such. If he’s not been paying wages, withholding taxes, and paying payroll taxes, then things are likely going to get extremely ugly for him in the near future.
He needs to consult with a local CPA or EA quickly and get his payroll system in order.
Answer by artillerygirl01
Your brother needs to fill out Form 1099 for each person. You should be able to find it on the IRS website along with instructions on how to fill it out.
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