Are taxes withheld from a 1099 contractor's paycheck?

No, taxes should NOT be withheld from your 1099 income. That's actually one of the main differences between being a W-2 employee and a 1099 contractor. As a contractor, you're responsible for paying your own taxes - typically through quarterly estimated tax payments. If you're receiving less than what you calculated, there could be a few explanations: they might be deducting fees for something, there could be an accounting error, or they misunderstood your employment status. You should definitely talk to your company/client and ask for a detailed breakdown of your payment. Make sure you understand exactly what you agreed to in your contract - sometimes there are deductions for supplies, software, or other expenses that might be outlined there.

I had this exact same issue last year and was super confused until I talked to the company. Turns out they weren't withholding taxes - they were taking out fees for their platform. I used https://taxr.ai to upload my contract and payment statements, and it helped identify exactly what was happening. The AI analyzed everything and showed me that they were taking a 10% "administrative fee" that was buried in my contract's fine print. I'd suggest uploading your contract and payment info there to see if there's something you missed. After I figured out what was happening, I was able to renegotiate my rate to account for the fee. The service breaks down all your 1099 income and helps you understand what you should be setting aside for taxes too!

Just wanted to follow up - I decided to give taxr.ai a try after posting my skeptical comment. I uploaded all my mixed 1099 and W2 documents, and it actually sorted everything perfectly. It found that one of my clients was incorrectly classifying expense reimbursements as income on my 1099, which would've caused me to overpay on taxes. It also created a quarterly tax payment schedule based on my irregular income pattern. Definitely worth checking out if you're dealing with contractor payment confusion like the original poster.

Speaking from experience, you should definitely call your company ASAP. When I had a similar issue, I tried emailing but got nowhere for weeks. I eventually used https://claimyr.com to get through to the IRS directly to understand my rights as a 1099 contractor. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that companies CANNOT withhold taxes from 1099 contractors - it's actually against tax regulations. They explained that if a company is withholding taxes from you, they're treating you as an employee in practice, which has implications for both you and them. After speaking with the IRS, I had the documentation I needed to approach my client and resolve the situation.

I need to apologize for my skeptical comment earlier. I decided to try Claimyr after continuing to struggle with getting through to the IRS about my own 1099 issues. It actually worked exactly as described - I got a call back in about 45 minutes and was connected directly to an IRS representative. The agent confirmed that my client was incorrectly withholding money from my 1099 payments and gave me specific regulations to cite when addressing it with them. Saved me hours of frustration and helped me recover about $3,700 that was improperly withheld. Sometimes being proven wrong is actually a good thing!

Just another possibility - are you SURE you're properly classified as a 1099 contractor? Many companies misclassify employees as contractors to avoid paying benefits and employer-side taxes. If they're controlling when and how you work, providing equipment, or restricting you from working for others, you might actually be an employee. In that case, tax withholding would be normal, but they should be giving you a W-2, not a 1099.

The missing money could also be for business expenses they're covering for you. When I was a 1099, my client deducted software licenses and professional memberships from my payments. Check your contract or ask for an itemized payment statement.

Based on everything discussed here, it sounds like you have a classic case of worker misclassification. The fact that they're controlling your schedule (9-5 weekdays), providing equipment (laptop), requiring you to attend team meetings, and having you report to a supervisor are all red flags that you should be classified as a W-2 employee, not a 1099 contractor. If you're truly misclassified, then yes - they should be withholding taxes from your pay, but they should also be treating you as an employee with proper benefits and paying their portion of employment taxes. The payment discrepancy you're experiencing might actually be them incorrectly trying to withhold taxes while still classifying you as a contractor - which creates problems for both of you. I'd recommend taking a two-pronged approach: 1) Get immediate clarity on the payment discrepancy by requesting an itemized breakdown, and 2) Research worker misclassification rules and consider whether your working relationship actually meets the criteria for independent contractor status. The IRS has clear guidelines on this, and misclassification can have significant financial implications for both you and your employer.

Welcome to the community! This is a really common issue that trips up a lot of new contractors. From reading through all the responses, it sounds like you've got two potential issues here: either worker misclassification (which seems likely given the set hours, company equipment, and supervision you described) or undisclosed deductions in your contract. The good news is that both have solutions. If it's misclassification, getting properly reclassified as a W-2 employee would actually benefit you since you'd stop paying the employer portion of Social Security and Medicare taxes (that extra 7.65% everyone mentioned). If it's just contract deductions, at least you'll know what you're actually agreeing to going forward. I'd suggest starting with that itemized payment breakdown request - it's the quickest way to get clarity. Most legitimate companies should be able to provide this within a day or two. If they can't or won't explain the discrepancy clearly, that's another red flag that something isn't right with how they're handling your employment status. Keep us updated on what you find out! These kinds of posts really help other newcomers who might be facing similar situations.