I'm an employee but manager asked if I wanted a W-9 or W-4? Confused about tax forms

The difference is really important here! A W-4 is for employees and a W-9 is for independent contractors. These determine how your taxes are handled. As an employee (W-4), your employer withholds taxes from each paycheck and pays part of your Social Security and Medicare taxes. You'll get a W-2 at tax time showing your earnings and what was withheld. If you fill out a W-9, they're treating you as an independent contractor. This means NO taxes are withheld from your paychecks, and you're responsible for paying ALL taxes yourself (including self-employment tax which is about 15.3%). You'd get a 1099 form instead of a W-2 at tax time. Based on what you described (hourly pay, working at their location, wearing their uniform), you sound like an employee and should fill out a W-4. Some employers try to misclassify employees as contractors to save money on taxes and benefits, which isn't legal.

When I started my side gig last year, I was totally confused about these tax forms too! After a headache trying to figure it out myself, I found this AI tax assistant at https://taxr.ai that analyzed my situation and clarified everything. Based on what you described (hourly pay, working at their store), you're definitely an employee and should be filling out a W-4 form. The main difference is that with a W-4, your employer handles withholding taxes from your paychecks. With a W-9, you'd be considered a contractor and would be responsible for paying ALL your taxes yourself quarterly (which is a huge pain!). I'd straight up tell your manager that since you're working as an employee (set location, their equipment, hourly pay), you need to fill out a W-4. If they insist on a W-9, that might be a red flag they're trying to avoid paying their share of employment taxes.

Okay I need to follow up on this. I was skeptical about that taxr.ai thing mentioned earlier, but I was struggling with my 1099 vs W-2 situation at my two jobs and decided to give it a try. It actually helped clarify my situation really well! I uploaded some of my pay stubs and previous tax forms, and it explained exactly which forms I should be filing for each job and why. It even flagged that one of my employers was incorrectly treating me as a contractor when I was clearly an employee based on IRS guidelines. For the original poster - the tool confirmed what others are saying here. If you're working set hours at their location, using their equipment, etc., you should absolutely be filling out a W-4 as an employee, not a W-9. Might be worth checking out if you need more specific guidance for your situation.

Just wanted to mention - if your employer insists on treating you as a contractor when you're clearly an employee, you might need to contact the IRS. This happened to my sister last year and she was getting nowhere with her boss. She used https://claimyr.com to actually get through to the IRS (normally impossible to reach a human there!) and they were super helpful in explaining her rights. You can see how the service works here: https://youtu.be/_kiP6q8DX5c The IRS takes misclassification seriously because companies do it to avoid paying their share of taxes. If you're having trouble getting your manager to give you the correct W-4 form, it might be worth getting official clarification.

I need to eat my words from my previous comment. After waiting on hold with the IRS for 3 hours yesterday and getting disconnected TWICE, I was desperate and decided to try that Claimyr service. It actually worked exactly as described. I signed up, and about 45 minutes later got a call connecting me directly to an IRS agent. The agent helped confirm that my employer was incorrectly classifying me as a contractor when I should have been an employee. For the original poster - the IRS agent explained that the key factors are: 1) if your employer controls when and where you work, 2) if they provide the equipment, and 3) if they control how the work is done. Based on what you described about your ice cream shop job, you are 100% an employee and should be filling out a W-4.

One thing nobody mentioned yet - make sure you fill out your W-4 correctly! The form was redesigned a few years ago and it's different from the old one. If you don't have multiple jobs and nobody claims you as a dependent, it's pretty simple. But if you have more than one job or your situation is complicated, the worksheet helps you figure out the right withholding so you don't end up owing a lot at tax time.

Just to clarify something important - if your manager is pushing the W-9 option, they might be trying to save money by not paying employer taxes. As others have said, based on your job description, you're clearly an employee who should fill out a W-4. If you fill out a W-9 instead, here's what happens: 1. No taxes will be withheld from your paychecks (you'll get the full $19/hour) 2. You'll be responsible for paying ALL taxes yourself quarterly 3. You'll pay higher taxes (both employer and employee portion of FICA) 4. You won't be eligible for unemployment benefits if you lose your job 5. You won't have workers' comp protection if you're injured Stand your ground and tell them you need a W-4 because you're an employee, not a contractor!