Dan wrote:

- quote -

That depends on the exact nature of the relationship. There
are "20 common law factors" that the IRS will use to
evaluate a given relationship into either an employee or IC
situation. See IRS form SS-8.

Often of late, persons and businesses think that they have
more discretion to structure their relationship toward one
outcome or the other than they really have.

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I am an electronics engineer who was laid off as of
3/7/2003. After a period of no work, I did a short contract
job for a company where I was paid without tax withholding
(1099). The agency would not do a W-2 working relationship.
I am now looking at another contract job but they insist on
a W-2 arrangement. I live in Illinois and the 1099 contract
was in Wisconsin if it matters.

I have an established (10 yrs old) sole proprietorship
business that I have used for part time contract work. All
the part time work was done on a 1099-like arrangement but
no 1099s were filed. I reported all income and paid all the
self employment taxes. I am planning on filing the recent
1099 contract income through this business on a Schedule C.

What tax issues are there when I do a mixture of 1099 and
W-2 contract work?

Some agencies insist on 1099, others insist on W-2 and some
are willing to set it up however I like. Is this proper?

Thanks in advance...

Dan.

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