Re: Contractor-to-employee fact you might want to know

[Peter <pnewman1 -at- optonline -dot- net>]

Dick Margulis wrote:

> If you are a 1099 contractor and later become a W-2 employee of one of your clients, you cannot file both a 1099 and a W-2 for that company in the same year.
> 
> Suppose you are running your independent consulting company with multiple clients and on July 1 you drop all but one client, fire your office help, close your home office, and go to work for that one client as an employee. According to our guy, the company is supposed to report everything it paid you for the entire year as W-2 wages. You can still deduct the expenses of running your business for the first six months of the year, but your margin above that is magically transformed into wages from your former client. Isn't that neat?


I suggest you contact a competent tax advisor, prior to your employer
issuing the form. 

-- 
Peter
- a chrono- logically experienced citizen

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