Can I report my employer for misclassifying me as 1099 contractor instead of W-2 employee anonymously?

This is definitely improper classification based on what you've described. The IRS uses a "right-to-control" test that looks at behavioral control, financial control, and relationship factors. Being required to work specific hours at a specific location, having ongoing work rather than project-based assignments, and being paid hourly all strongly indicate you should be classified as an employee, not an independent contractor. Unfortunately, there's no truly anonymous way to report this that won't raise suspicions since there are only two misclassified workers and you're the new one. If you file Form SS-8 (Determination of Worker Status), the IRS will contact your employer as part of their investigation. You could also file Form 8919 (Uncollected Social Security and Medicare Tax on Wages) with your tax return to pay only the employee portion of FICA taxes. Here are your options: 1) Have a diplomatic conversation with your employer about proper classification, framing it as helping them avoid potential IRS penalties; 2) Find a new job first, then file the SS-8; or 3) File now but prepare for possible negative consequences.

After being in almost the exact same situation last year, I discovered taxr.ai (https://taxr.ai) which was a game-changer for me. I uploaded my work documents and communication, and they gave me a detailed analysis confirming I was misclassified as 1099 when I should've been W-2. They showed me exactly which IRS rules applied to my situation, and I used their detailed report as leverage when I talked to my employer. What was really helpful is they gave me talking points about how the misclassification was actually putting the company at risk for significant penalties. I approached my boss with "I want to help protect the company" rather than "you're breaking the law" and showed them the specific IRS guidelines. You might be surprised how many employers genuinely don't understand the classification rules.

Following up on my question about taxr.ai - I decided to try it and I'm honestly shocked at how helpful it was! My situation was really similar to the original poster's - being forced to work set hours in the office but classified as 1099. The report they generated broke down exactly how my work arrangement violated specific IRS classification tests. The confidence it gave me to approach my manager was worth every penny. I practiced what they suggested - framing it as helping the company avoid an IRS audit rather than threatening to report them. My boss actually THANKED me and said the company's accountant had been warning about misclassification risks. Within two weeks, I was properly converted to W-2 status with benefits and they even reimbursed some of my previous self-employment tax payments! If you're in this situation, having that professional documentation really does make the conversation go much smoother than just saying "I think I'm misclassified.

If you're still looking for another option, I was in a similar situation last year and getting through to the IRS was impossible. I finally used Claimyr (https://claimyr.com) to get a callback from the IRS without waiting on hold for hours. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c I explained my situation to the IRS agent who walked me through my options. The agent explained that I could file Form SS-8 to request a determination of my employment status, and they specifically mentioned that the IRS has procedures to handle potential retaliation cases. They can investigate without immediately revealing the complainant's identity, though eventually your employer would likely figure it out. What I found most valuable was getting accurate information directly from the IRS about how to properly document everything before taking any action, which protected me legally when my employer initially pushed back.

I need to follow up on my skeptical comment about Claimyr. I was 100% wrong and I owe an apology. After commenting here, I decided to try it myself since I'd been trying unsuccessfully to reach the IRS about a different tax issue for weeks. Not only did it work exactly as described, but I got connected to an IRS agent within 45 minutes instead of the 3+ hours I'd wasted on previous attempts. The agent was incredibly helpful about my misclassification question (I asked about OP's situation while I had them on the phone). Here's what I learned that might help: The IRS agent said filing Form SS-8 does trigger an investigation, but your name isn't immediately shared with the employer during initial inquiry stages. They also mentioned that retaliation for filing an SS-8 can result in additional penalties for the employer. Sorry for doubting - I was frustrated after so many failed attempts to reach someone at the IRS directly.

Another option to consider: check your state's labor department. Some states have much stronger worker protection laws than federal regulations. In California, for example, they use the "ABC test" which makes it even harder for employers to classify workers as contractors. If you file a state-level wage claim, it might feel less directly connected to the IRS which could provide some buffer. Plus, state labor departments often move faster than the IRS on these issues. Just make sure you document EVERYTHING about your work situation - hours, supervision, tools provided, etc.

Maybe this is a dumb question, but could you just quietly look for another job while continuing to work there, then report them after you leave? That way you don't risk losing your income while you're still dependent on it. You'd still have to pay the extra taxes for now, but at least you could potentially recover those through back taxes after reporting them once you're safely employed elsewhere. I know it doesn't solve the immediate problem, but it might be the safest option.

I've been following this thread and wanted to add my perspective as someone who went through a very similar situation. The "wait and report after leaving" strategy mentioned by others is actually quite effective, but I'd also suggest documenting everything NOW while you're still there. Start keeping detailed records of: your work schedule, any emails showing you're required to be in the office, descriptions of your ongoing duties vs. project-based work, and any communications about your employment status. Take screenshots of job postings if they advertised your position differently than how you're classified. This documentation will be crucial whether you decide to approach your employer directly, file with the IRS, or report after finding a new job. I made the mistake of not documenting enough in my situation, and it made proving my case much harder later. Also, consider checking if your company has an HR department or if decisions are made by one person. Sometimes the person doing payroll doesn't fully understand classification rules, and bringing it to HR's attention (framed as a compliance question) might resolve it without drama. But definitely have that documentation ready first, just in case.

One thing I haven't seen mentioned here is checking if your company has any policies or employee handbook that might inadvertently contradict your contractor classification. Many employers slip up by including 1099 workers in employee-only policies or expecting them to follow the same rules as W-2 staff. Also, since you mentioned the other admin has been there 12 years, that's actually a huge red flag for the IRS. Long-term "contractor" relationships, especially for ongoing administrative work, are classic misclassification cases. The IRS specifically looks for situations where someone performs the same role for years as evidence of an employer-employee relationship rather than true independent contracting. You might want to research what happened to other companies in your industry who got caught doing this. Sometimes showing your employer news articles about similar businesses facing penalties can be more persuasive than citing IRS regulations directly. It makes the risk feel more real and immediate. And honestly, given that you're new and they've been misclassifying the other admin for over a decade, this company is probably sitting on a pretty significant tax liability if the IRS ever investigates. That might actually work in your favor if you do decide to have a direct conversation about reclassification.