OLT TAX CORNER ~ W-2 Questions

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OLT TAX CORNER ~ W-2 Questions

W-2 FAQ
Can someone explain to me what and who would qualify as a Statutory employee? I am having a problem with one of my employer's company name. I can't find the employer or tax id number. What do I do? What is the difference between a W-2 and a 1099-MISC?

Can someone explain to me what and who would qualify as a Statutory employee?

Some workers are deemed to be employees by statute. For an exempt organization, the most common employee in this category is its officers. An exempt organization (EO) may have officers such as a president, vice-president, secretary, treasurer, executive director, CEO, etc. As used here, the term "officer" includes anyone who holds a position of trust, authority, or command within an organization. In addition, while not as prevalent in an exempt organization, the following workers are also statutory employees:

A full-time traveling or city salesperson who solicits orders from wholesalers, restaurants, or similar establishments on behalf of a principal. The merchandise sold must be for resale (e.g., food sold to a restaurant) or for supplies used in the buyer's business;
A full-time life insurance agent whose principal business activity is selling life insurance and/or annuity contracts for one life insurance company;
An agent-driver or commission-driver engaged in distributing meat, vegetables, bakery goods, beverages (other than milk), or laundry or dry cleaning services; and
A home worker performing work on material or goods furnished by the employer.

An employer should indicate on the worker's Form W-2 whether the worker is classified as a statutory employee. Statutory employees report their wages, income, and allowable expenses on Schedule C, Form 1040. Statutory employees are not liable for self-employment tax because their employers must treat them as employees for social security tax purposes.

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I am having a problem with one of my employer's company name. I can't find the employer or tax id number. What do I do?

If your employer's EIN was not printed on your W-2 form, then contact your employer. They should be able to give you their EIN. If not, try contacting the IRS at 1-800-829-1040 and they may be able to provide you with additional information.

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What is the difference between a W-2 and a 1099-MISC?

Employers use a W-2 to report wages, tips and other compensation paid to an employee. The form also reports the employee's income tax and Social Security taxes withheld and any advanced earned income credit payments. The employer provides the W-2 to the employee and the Social Security Administration. A Form 1099-MISC is used to report payments made in the course of a trade or business to another person or business who is not an employee. The form is required among other things, when payments of $10 or more in gross royalties or $600 or more in rents or compensation are paid. The form is provided by the payer to the IRS and the person or business that received the payment.

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