1099 Form

[Panacea]

I don't quite know where to put this, and I will be searching out some help from an accountant or something since I know this is asking a lot...but I'm incredibly lost and wonder if anyone might have some experience with this.

I am a full time non-eligible employee (no benefits, time off, etc), and I am paid 1000 hours from my employer and will now be paid a subsequent 1000 hours from a grant, funneled from a third party fiduciary to make up the 2000 hours.

Taxes will not be taken out, so I will be 1099'ed. I know I will have to pay the taxes on my own, but I'm not sure the best way to go about this. Am I getting badly screwed, like...is it more taxes??

 

[AUFred]

It is more taxes for you. Instead of an employer paying matching taxes you get the full tax burden on Social Security & Medicaid. Those two alone will hit you for close to 15%. Plus federal taxes & state taxes if Michigan has income tax.

 

[Panacea]

So my employer was doing that even if I was FTNE?

 

[retro]

Sounds like they're screwing you over... it could even be illegal depending on the terms of the employment contract you signed.

 

[AUFred]

I know as an employer if I pay someone even part-time I have to withhold taxes & pay matching taxes. I have worked several people for a number of years on contract. Making all taxes their responsibility.

 

[Panacea]

Sounds like they're screwing you over... it could even be illegal depending on the terms of the employment contract you signed.

Definitely would not be the first time :willy_nilly:, they have just been searching for someone willing to take the grant money raised for the rest of my salary, but I guess that organization is not willing to match the taxes.

I need a new job so bad, I can't wait to tell them to fuck themselves.