1099 or w2? (1 Viewer)

mitchh1124 said:

I am a personal trainer for a local gym and today we had a meeting. The owners wanted to convert us to a 1099. My problem is ..we are still getting paid by the rates the gym makes. We use their facilities I do not have my own equipment. We even still have to wear that gym's training t shirt. I myself, do not believe we fall under this category. If I pull someone off the street to come workout their and I tell them it cost 500 dollars per month and ill train you Monday thru Friday. The gym gets the 500 and I only get 10 per session..that doesn't seem like the word "self employed"

Am I wrong?

thanks for any help.

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Mad Cow said:

I just had a conversation with my accountant and he said the IRS is really cracking down on the 1099 employees.  He said they only allow 3 types of 1099 employee's now?  Might be something to look into either way if it would put you in harm's way, tax-wise.




 




 

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glvsav37 said:

did he say why or how they are cracking down?  I run a small biz on the side (graphic design) and 100% of my revenue is 1099 based (my clients issue me a 1099) and I have 1 guy who helps me and I issue him a 1099. We both work out of our houses, no physical office. 

or is he talking about businesses that have an in-house staff of 1009 based people? 

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mitchh1124 said:

I told the owner this means I don't have to wear the company t shirt anymore right?

he said we want people to know you are a trainer so you have to wear the business shirt.

he kept referring to the clients as his members 

cause I said..if i sell training for 5000 dollars why don't I get all of that money and pay you monthly rent?

his reply, it's my facility and my members ..I'm paying the electric bill blah blah

doesnt even make sense?

**basically kept hinting at he could fire me**

lol

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tri-man 47 said:

Take a look at this IRS 20-point test.  These will give you a good idea whether you're self-employed or not.  

The company's benefit is that if you're self-employed, they don't have to pay FICA tax.  But that means you'll not only pay the 7.65% that's currently withheld, but you'll also have to pay the 7.65% match that's otherwise paid by the employer.

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glvsav37 said:

did he say why or how they are cracking down?  I run a small biz on the side (graphic design) and 100% of my revenue is 1099 based (my clients issue me a 1099) and I have 1 guy who helps me and I issue him a 1099. We both work out of our houses, no physical office. 

or is he talking about businesses that have an in-house staff of 1009 based people? 

Click to expand...