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Question re 1099 vs w-4 implications for freelance work
Topic Started: Jun 22 2011, 06:24 AM (1,086 Views)
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My wife just started a short freelance gig at an advertising firm today. They asked her to fill out a W-4 instead of a 1099. After some quick research, it seems to me that its probably justifiable since she works on premises and they direct her work.

What are the implications of this other than the fact that they'll withhold some taxes?
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The employer has to do more work for W-4 than for 1099. So they better have a good reason or they're taking on more work for naught.

I do not know of any adverse implication on the part of the employed.
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I am the grey one
Employers are very keen to not having the IRS come in and redesignate a contractor as an employee. There are certain financial penalties involved. Taking direction from anyone but the immediate contractee is one test of whether or not you are truly a contractor.

I have been working on a 1099 for the past 16 years. Any time anyone within the company I contract with attempts to assert managerial muscle over me I am quick to point out that I am under the direction of no one except the guy who signed my contract (the president of the company) and even then it is only consistent with the terms of the contract.

I don't think your wife should experience any problems other than the FICA withholdings. Her employer is probably retaining her as a short term employee out of an abundance of caution.
"Any man who would make an X rated movie should be forced to take his daughter to see it". - John Wayne

There is a line we cross when we go from "I will believe it when I see it" to "I will see it when I believe it".

Henry II: I marvel at you after all these years. Still like a democratic drawbridge: going down for everybody.

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From The Lion in Winter.
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Thanks. I figured that was what they were doing.

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Run for The Border
Yep. Control over hours, place, time and/or duties are key indicators of an employee as opposed to a contractor. These guys are probably right to do so. If Rachel did not pay her taxes the IRS would probably come back to the employer.
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Now, the Cheetos Burrito.”

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