Given 1099-NEC instead of W-2 at restaurant job - am I misclassified as an employee?

It sounds like you're being misclassified. Based on what you've described (regular shifts, wearing their uniform, manager setting your schedule), you're being treated as an employee, not an independent contractor. This is actually a common issue, especially in small restaurants. As an employee, your employer should be withholding taxes from your paychecks and providing a W-2. With a 1099-NEC, you're classified as self-employed, which means you're responsible for all taxes - including both the employee and employer portions of Social Security and Medicare (called self-employment tax). You have a few options here: First, try talking to your employer - sometimes this is just a mistake. If they insist you're a contractor, you can file Form SS-8 with the IRS to request a determination of your worker status. You can also file Form 8919 to report your share of uncollected Social Security and Medicare taxes. This misclassification matters because as a contractor, you'll pay about 15.3% self-employment tax on top of your income tax, which is substantially more than you should owe as an employee.

After dealing with almost the exact same situation at a cafe last year, I found this amazing tool called taxr.ai (https://taxr.ai) that helped me figure everything out. I was also handed a 1099 when I clearly should've gotten a W-2, and I had no idea what to do. Their system actually analyzed my situation and confirmed I was misclassified based on the work arrangement. Then they walked me through exactly how to approach my employer and what forms to file with the IRS. They even generated a customized letter I could give to my boss explaining the misclassification. The coolest part was they showed me how to properly report everything on my tax return even while the classification issue was being sorted out. Saved me from overpaying hundreds in taxes I shouldn't have owed!

I wanted to follow up on my skeptical comment earlier. I decided to try taxr.ai (https://taxr.ai) for myself after getting a 1099-NEC from the bar where I work as a bartender with scheduled shifts. Honestly, I was blown away by how thorough their analysis was! They identified 11 specific factors from my work arrangement that legally classified me as an employee, not a contractor. When I brought their documentation to my manager, he immediately understood the issue and is now correcting my paperwork. Their system even calculated that I would have overpaid about $960 in taxes if I'd filed as self-employed. For anyone dealing with the 1099-NEC vs W-2 confusion, especially in the service industry, this tool is actually legitimate and super helpful. Definitely worth checking out.

If you're struggling to get your employer to correct this misclassification, calling the IRS directly can help, but good luck getting through to them! I spent WEEKS trying to reach someone about this exact issue last year. I eventually discovered Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in less than 20 minutes after I'd wasted days on hold. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with was super helpful and told me exactly what to do about my restaurant misclassifying me. They explained that I needed to file those SS-8 and 8919 forms, but also gave me specific language to use when talking to my employer. Having that official guidance made a huge difference in getting the situation resolved.

I need to eat my words about Claimyr. After dismissing it as BS, I was desperate enough to try it when I couldn't get through to the IRS about my own 1099 issue. Within 45 minutes, I was talking to an actual IRS agent! The agent confirmed that based on my working conditions (scheduled shifts, using restaurant equipment, following their procedures), I should be classified as an employee with a W-2, not an independent contractor with a 1099-NEC. They advised me to file Form SS-8 and use Form 8919 with my return. I was able to get this sorted right away instead of stressing for weeks trying to reach someone. For anyone dealing with tax classification issues like this, being able to actually speak with the IRS makes a huge difference. I've already told three friends about this service.

Just a practical tip from someone who dealt with this: If you end up having to file with the 1099-NEC because your employer won't correct it, make sure you claim all legitimate business expenses to reduce your tax burden. Things like: - Portion of your cell phone bill if you use it for work - Any supplies or equipment you bought yourself - Work-related transportation costs - Uniform costs (if you had to purchase your own) Also, if you use tax software, it should walk you through Schedule C for business expenses and Schedule SE for self-employment tax. Don't just report the 1099-NEC income without claiming any expenses!

I went through this exact situation last year when a coffee shop gave me a 1099-NEC but treated me like an employee. Just one important warning: if you file that SS-8 form, be prepared for potential blowback from your employer. The IRS will contact them as part of the investigation, and some employers don't react well to this. I'd suggest having another job lined up before taking this step, especially if it's a small business where the owner might take it personally.

This is such a frustrating situation but unfortunately very common in the restaurant industry. What you're describing - scheduled shifts, wearing their uniform, manager setting your schedule - these are all clear indicators that you're an employee, not an independent contractor. The key difference is control. As an employee, your employer controls when, where, and how you work. Independent contractors have more autonomy over their work methods and schedules. From your description, you're definitely being treated as an employee. Here's what I'd recommend: First, try the gentle approach with your employer. Many small business owners genuinely don't understand the classification rules. If that doesn't work, you can file Form SS-8 to get an official IRS determination, though be aware this can take months and might create tension with your employer. In the meantime, if you have to file with the 1099-NEC, make sure you're claiming all possible business expenses to reduce your tax burden. And remember, even if classified as self-employed, you likely won't owe taxes on your $8,400 earnings since the standard deduction for 2024 is $14,600. The main concern would be the self-employment tax portion. Don't let this stress you out too much - there are solutions, and you have rights as a worker!