USA 1099

[Tami Helmers]

My daughter in-law worked for someone who sells Herbal Life shakes in our home town as a retail location. This person never told my daughter in-law she was working as an independent contractor, never had her sign a W-9 form but paid her and everyone who works at the shake shop cash. My daughter in-law was asked over a text to provide her ss # and then sent a 1099. Is this legal and is my daughter in-law still responsible for the taxes owed, which she never kept track of because it was cash. So the 1099 she received could be an inflated amount of what she was actually paid.

 

[Drmdcpa]

If taxes were not being deducted your DIL should have been aware she was being paid via a 1099.

What separates a W2 from a 1099 is control. If she was told where to be, when to be, how to be, and what to do, she was controlled and a W2. If any of those factors, she had control she might qualify as a 1099.

It does not sound like a 1099 was appropriate. If she does not mind burning a bridge and possibly earning a bad reputation, she can challenge it at many different governmental offices.

 

[Tami Helmers]

Thank you for your help. I that that was the case, but wanted to make sure I was giving her the correct answer.