Re: H1B1 1099 BY THE EMPLOYER

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Dear Sir/Madam,

If you a employee of a business you should receive a W-2
form that lists the income you received during the year.
This form also contains deductions taken from that income in
the form of federal and state taxes, deferred compensation
and social security contributions, to name a few. However,
the 1099 forms are used for a number of reasons, though,
typically, they are given to independent contractors--also
known as "freelancers"--as a record of the income they
received from a particular business.
On the 1099 Form, the income earned will be noted, but
there will not be any deductions for federal and state
income taxes, nor will any deferred compensation, social
security, or medical deductions be taken. Since the 1099
recipient is not an employee of the business, the business
is obligated only to tender the income to the contractor.
This 1099 income is also reported to the Internal Revenue
Service so it has the opportunity to track income from
freelance workers. The freelancer will be obligated to make
his or her own tax deductions and forward such payments to
the IRS.
Your question if you have a case where you can held the
company responsible for paying your tax? It is depend on
your contract/employee classification with the company.
However, if the company deducted taxes from your pay cheque
(weekly, or monthly)then they should gave you W2 if they did
not deducted anything then you're responsible to pay your
own tax as long as you pay your tax it will not mess up your
H-1B status.

On 4/07/07, O wrote:
> I have a question about the tax law for H1b1 visa holders.
> I am working on for a compnay for past two years on h1b1
> visa. last year i earned about 60k and they gave me 1099
> and i paid my own taxes. this year i have earned about
> close to 100k and i probably have to pay my own taxes as
> well. they give me 1099 again this time instead of W2. as
> far as i know the company should be responsible to pay my
> taxes and i should be getting a W2, i told the company
> about that and they said for the job they have hired they
> will give 1099 only. I dont want to be responsible for
> paying 50k in tax for this year, do i have a case where i
> can held the company responsible for paying my tax WITHOUT
> MESSING UP MY H1B1 STATUS?