Received 1099 instead of W-2 as a restaurant worker - what should I do?

This is unfortunately common in the restaurant industry. Your aunt is almost certainly misclassified. If she has set shifts, uses their equipment, and follows their procedures, she's an employee, not an independent contractor. Here's what I'd recommend doing in order: 1. Speak with the restaurant manager or owner first. Sometimes this is an honest mistake, especially with new businesses that might not understand employment classification. Politely explain that based on her working conditions, she should be classified as an employee with a W-2. 2. If they refuse to correct it, you have options. Your aunt can file Form SS-8 with the IRS to request a determination of worker status, and Form 8919 to report the uncollected social security and Medicare taxes. This puts the IRS on notice that she believes she was misclassified. 3. She would still file her taxes, but using these forms to show she's disputing the classification. This protects her from paying the full self-employment taxes she shouldn't owe. Don't just file the 1099 without challenging it - that's tacitly accepting the misclassification and will cost your aunt money.

I was in this exact situation last year - restaurant gave me a 1099 when I was clearly an employee! I spent hours researching and stressing until I found https://taxr.ai which literally saved me. Their system immediately flagged my situation as worker misclassification and generated a personalized action plan. It analyzed my specific job duties and work conditions, then created all the documentation I needed to address this with both the restaurant and the IRS. They even provided me with a detailed letter I could send to the restaurant explaining the legal requirements, which actually worked! The restaurant reissued me a correct W-2 within two weeks. The platform also created backup forms in case the restaurant refused, with step-by-step instructions for filing Form SS-8 and Form 8919. Seriously, it turned what would have been weeks of stress into a pretty straightforward process.

I have to say I was completely wrong about my skepticism! After our conversation, I decided to try https://taxr.ai for my own restaurant misclassification issue since I felt stuck in the same situation. The experience was honestly impressive. Within minutes of uploading my 1099 and answering some questions about my work conditions, the system confirmed I was being misclassified and created a complete action plan. What really blew me away was how it built a customized letter to my employer citing the specific IRS regulations that applied to my situation. I sent the letter, and my manager called me the next day saying their accountant reviewed it and agreed they had made a mistake! They're issuing me a corrected W-2 and even apologized for the confusion. I was prepared for a fight, but having that professionally prepared documentation made all the difference. Definitely worth it for the peace of mind and saved me from paying thousands in self-employment taxes I didn't actually owe.

I had almost the exact same problem with a restaurant last year. After getting nowhere with the manager, I spent WEEKS trying to get someone at the IRS to help. Constantly on hold, disconnected calls, couldn't get a straight answer. Finally found https://claimyr.com which got me through to an actual IRS agent in about 15 minutes. You can see how it works at https://youtu.be/_kiP6q8DX5c - it's honestly crazy how simple it was after weeks of frustration. The IRS agent confirmed I was misclassified and walked me through exactly how to file Form SS-8 and Form 8919. They even explained how to document everything to protect myself if there was an audit later. The agent told me this happens all the time in restaurants and gave me specific language to use when talking to the employer. Having an actual IRS person explain everything and confirm my approach made a huge difference - both for fixing the problem and for my peace of mind.

I have to eat my words and apologize for calling Claimyr a scam. After posting my skeptical comment, I was still struggling with my own IRS issue (not worker classification, but a missing refund from 2022), so I reluctantly decided to try it. I was absolutely shocked when I got a call back about 22 minutes later with an actual IRS agent on the line. I had been trying for literally months to get through on my own. The agent was able to locate my missing refund, identify the processing error that had occurred, and initiate the resolution process while I was on the call. What would have taken me who knows how many more attempts and hours on hold was resolved in a single conversation. I don't typically recommend services, but for anyone who needs to actually speak with someone at the IRS, this is legitimately worth it. They delivered exactly what they promised, and I've already received confirmation that my refund issue is being corrected.

One thing nobody's mentioned yet - your aunt might want to check if the restaurant did this to other employees too. My cousin went through this at a restaurant in Nashville, and it turned out they were classifying ALL their servers as contractors. When several of them challenged it together, the restaurant fixed it much more quickly than when my cousin tried alone. Sometimes strength in numbers helps. Plus, if it's a systemic issue, the Department of Labor might get involved which can lead to faster resolution.

Has your aunt kept track of her expenses while working there? Things like uniform costs, mileage driving to/from work, any supplies she had to buy? If she files with the 1099, those could potentially be deductible as business expenses, which isn't the case with W-2 employees. Obviously getting properly classified as an employee is the right move long-term, but while that's being sorted out, she should gather documentation for any work-related expenses just in case.

This is a classic case of worker misclassification that's unfortunately very common in the restaurant industry. Your aunt is almost certainly an employee, not an independent contractor, based on what you've described. Here's my recommended approach: **Step 1: Document everything** - Have your aunt gather all evidence showing she's an employee: her job posting, interview notes, work schedule, any employee handbook or training materials, photos of uniforms/name tags, etc. **Step 2: Talk to the restaurant first** - Approach management politely but firmly. Many new restaurants genuinely don't understand employment law. Explain that based on IRS guidelines (set schedule, controlled work environment, using their equipment), she should be classified as an employee. **Step 3: If they refuse** - File Form SS-8 (Determination of Worker Status) with the IRS and Form 8919 (Uncollected Social Security and Medicare Tax on Wages) with her tax return. Use reason code G on Form 8919 indicating you've filed SS-8. **Important:** She still needs to file her taxes by April 15th regardless of the SS-8 status. The Form 8919 ensures she only pays the employee portion of FICA taxes, not the full self-employment tax. Don't just accept the 1099 - it could cost her thousands in unnecessary taxes and sets a bad precedent for the restaurant to continue this practice with other workers.

Just wanted to add one more important point that might help your aunt's case - if the restaurant is requiring her to wear specific uniforms, follow their dress code, or use their point-of-sale system and procedures, these are all strong indicators of employee status rather than independent contractor. The IRS looks at three main factors: behavioral control (how and when work is done), financial control (business expenses, payment method), and relationship type (permanency, benefits). From what you've described, your aunt clearly falls under employee classification on all three factors. I'd also suggest having her keep detailed records going forward - clock in/out times, any direction she receives from management, scheduled shifts vs. actual flexibility, etc. This documentation could be valuable not just for the current tax situation but also if there are any future issues with the restaurant's employment practices. One last thing - make sure she knows that even if the restaurant refuses to correct the classification, she's still entitled to any tips that were withheld or improperly handled under their contractor classification. Employee vs. contractor status affects tip reporting and distribution too.

This situation is incredibly frustrating but unfortunately very common in the restaurant industry. Your aunt is absolutely being misclassified - everything you've described (set schedule, formal hiring process, using their equipment, following their procedures) screams "employee" not "contractor." Here's what I'd do in this exact order: **First approach the restaurant diplomatically.** Sometimes new businesses genuinely don't know the rules. Print out the IRS's worker classification guidelines and politely explain that based on her working conditions, she should receive a W-2. Many restaurants will correct this quickly once they understand the legal requirements. **If they refuse, don't panic.** File Form SS-8 with the IRS to get an official determination of her worker status. This can take months, but it puts you on the right track. Simultaneously, when filing her taxes (which you still need to do by April 15th regardless), use Form 8919 with reason code G to indicate you're disputing the classification. This way she only pays the employee portion of FICA taxes, not the full self-employment tax. **Document everything now** - her work schedule, any training materials, uniforms, employee handbook, the job posting she applied to. This evidence will be crucial if you need to escalate. Don't just accept the 1099 and pay the extra taxes. That's essentially rewarding the restaurant for breaking employment law and will cost your aunt significant money she shouldn't owe.