I work regularly at one studio & am currently a 1099 Employee, should i be getting paid with a w2?

Hi Alice,

You won’t have a problem as long as you report your income from your 1099 on your tax returns & pay the taxes you owe. However, the studio owner may have a problem if you fit the description of an employee but are paid like an Independent Contractor. He/she may want to check with their accountant on that. Good luck Alice.

Paul Thomas
www.homeworkoutguy.com

Whether you’re an employee or an independent contractor is a facts and circumstances test. To the extent that an instructor has more control over what you teach, where, and when, they are more like an independent contractor. To the extent that the instructor has less control over these things and the gym has the lion’s share of the say, an instructor appears more like an employee.

It does matter which you are for tax purposes. A contractor fills out Schedule C for their business and takes deductions directly against their business income. Also, they pay both the employer’s and the employee’s share of self employment taxes (FICA / Medicare) so there is a larger payroll tax burden for being an independent contractor. An employee gets a W-2 and although similar expenses are deductible, they fall on Schedule A as an other miscellaneous itemized deduction, and only the amount that exceeds 2% of your adjusted gross income actually reduces your tax burden.

There’s a great publication on irs.gov that tells you about employees versus contractors. That way you and your studio can see what fits best based on your unique situation. Both of you need to be consistent.

This truly seems like an issue/question that your employer should be asking of their accountant and attorney since the employer is the one that must/should declare you as either an independent contractor or employee. Pose this question to your employer and follow-up with him or her to get your answer. if you still have doubts, ask your own attorney to review this.

I hope this helps.

LaRue, CSCS
www.lecfitness.com