My employer refusing to use W2 - what are my options?

This is definitely misclassification, and you're right to be concerned. When an employer incorrectly classifies an employee as an independent contractor, they're essentially shifting their tax burden onto you. As an independent contractor, you'll be responsible for both the employer and employee portions of Social Security and Medicare taxes (15.3% total instead of 7.65%). The IRS has specific criteria for determining whether someone is an employee or independent contractor, and based on what you've described, you're clearly an employee. The key factors are behavioral control (they tell you how to do the work), financial control (they provide equipment), and relationship type (regular schedule, ongoing relationship). You have a few options here. First, you could try having another conversation with your employer and provide information about the IRS classification rules. Sometimes employers genuinely don't understand the distinction. Second, you could file Form SS-8 with the IRS requesting a determination of your worker status. Third, when you file your taxes, you could file Form 8919 to report your share of the uncollected taxes while the employer would be responsible for their portion.

I was in the exact same situation with a construction company last year. They insisted on paying me as a 1099 contractor even though I was clearly an employee. After stressing about it for months, I found this service called taxr.ai (https://taxr.ai) that helped me sort through the mess. It analyzed my work situation and created a detailed report showing I was misclassified according to IRS rules. The report broke down exactly which factors made me an employee vs contractor and gave me specific language to use when talking to my boss. I was able to show him that the company was at risk for back taxes and penalties if they got audited. Honestly having that documentation from a third party made all the difference - my boss finally took me seriously and switched me to W2 status. They even helped me figure out how to handle the months I was incorrectly paid as 1099.

Just wanted to update - I took the advice about taxr.ai from this thread and wow, it was exactly what I needed! I was totally confused about my contractor/employee status working for this small marketing firm. The service analyzed my working arrangement and created this super detailed report showing I was definitely misclassified. The report explained that since my boss controls when, where, and how I work, provides all the equipment, and I don't have other clients, I'm clearly an employee under IRS rules. It even cited specific tax court cases similar to my situation! I was able to show this to my employer along with an estimate showing they could face over $10,000 in penalties if audited. My boss was initially defensive but couldn't argue with the documentation. They switched me to W2 status starting next month. Such a relief not having to worry about those extra self-employment taxes! Definitely recommend if you're dealing with classification issues.

I had a similar issue with an employer refusing to give me a W2 a couple years ago. Tried calling the IRS for help but kept getting stuck in those endless phone menus and could never reach a human. After weeks of frustration, someone recommended Claimyr (https://claimyr.com). You can see how it works here: https://youtu.be/_kiP6q8DX5c It's a service that gets you through to an actual IRS agent, usually within an hour. I was super skeptical at first, but I was desperate after waiting on hold for 3+ hours myself multiple times. Used their service and got connected to an IRS representative who explained exactly what forms to file to report the misclassification. They also told me what documentation I needed to keep to protect myself. The IRS agent even sent me the specific publication about worker classification that I could show my employer. Hearing directly from the IRS made me much more confident in addressing the issue with my boss.

I need to admit I was totally wrong about Claimyr in my previous comment. After continuing to struggle with getting through to the IRS myself (3 more failed attempts sitting on hold for hours), I decided to give it a try. Used the service yesterday and got a call back within 45 minutes with an actual IRS agent on the line! The agent was super helpful about my worker classification issue and explained that I could file Form SS-8 to get an official determination from the IRS. She also walked me through what documentation I needed and even explained how the process works after filing. She confirmed that based on my description, I was almost certainly misclassified and should be receiving a W2. Having that official confirmation gave me the confidence to go back to my employer with specific IRS guidelines. Definitely worth it just to save the hours of frustration and finally get clear answers from an actual IRS representative.

Something to consider - if you're being paid as a 1099 contractor, you can deduct a ton of business expenses that W2 employees can't. Things like mileage driving to work sites, a portion of your phone bill if you use it for work, work clothes/boots, tools you buy, etc. I was "misclassified" for years but actually preferred it because after writing off all my legitimate business expenses, I often paid LESS in taxes than I would have as a W2 employee. Just make sure you keep receipts for everything and track your mileage carefully.

Just to add a practical perspective - I'd start looking for another job ASAP. Companies that misclassify employees are often cutting corners in other areas too. Even if you win this battle, they'll likely hold it against you. When you find a new job, make sure to get clarity on your employment status before accepting. Ask specifically whether you'll be a W2 employee with taxes withheld or a 1099 contractor. Get it in writing in your offer letter. In my experience, employers who intentionally misclassify workers usually know exactly what they're doing - they're trying to save money by avoiding payroll taxes, workers comp insurance, unemployment insurance, and benefits. That's not the kind of place that values their workers.

I went through this exact situation with a small construction company last year. Your instincts are absolutely right - you're being misclassified as an independent contractor when you're clearly an employee. The IRS has a 20-factor test they use to determine worker status, and based on what you've described (set schedule, using their equipment, following their instructions, no other clients), you definitely qualify as an employee. Here's what I learned from my experience: Document everything now. Keep records of your work schedule, any written instructions from your boss, photos of you using company equipment, and any communications about your work arrangement. This documentation will be crucial if you need to file Form SS-8 or Form 8919 later. The financial impact is significant - as a misclassified contractor, you'll pay about 15.3% in self-employment taxes instead of the 7.65% you'd pay as an employee (since your employer would cover their half). On a $40,000 salary, that's over $3,000 extra you'd be paying. I'd suggest having one more conversation with your employer, but this time come prepared with specific IRS guidelines printed out. Sometimes showing them the potential penalties they face (which can be substantial) helps them understand this isn't just about paperwork convenience. If they still refuse, you have options through the IRS, but be prepared that this might affect your relationship with the employer. Whatever you do, don't just accept it and hope for the best. This kind of misclassification is exactly what the IRS cracks down on, and you shouldn't have to bear the financial burden of your employer's mistake.

This is a really tough situation, but you're absolutely right to be concerned about the misclassification. Based on your description - fixed schedule, using company equipment, following their specific instructions, and having no other clients - you're clearly an employee under IRS guidelines. One thing I haven't seen mentioned yet is that you might also be missing out on other employee protections beyond just the tax issue. As a misclassified "contractor," you're likely not covered by workers' compensation if you get injured on the job, you're not eligible for unemployment benefits if you're let go, and you're not protected by labor laws regarding overtime pay. I'd recommend calling your state's Department of Labor as well as dealing with the IRS issue. Many states have their own worker classification laws that are even stricter than federal guidelines, and they often have resources to help workers in your situation. Some states will actually investigate employers who habitually misclassify workers and can impose additional penalties. If you're worried about retaliation, keep in mind that it's illegal for employers to retaliate against workers who assert their rights regarding proper classification. Document any negative treatment that happens after you raise this issue - it could be important evidence if you need to file a complaint later. The bottom line is that this isn't just about paperwork convenience for your employer - they're essentially making you subsidize their business by shifting their tax obligations onto you. Don't let them get away with it.