First Employee
“I accidentally classified a W-2 employee as a 1099 contractor for two years, how do I voluntarily report this to the IRS without getting destroyed by fines?”
Misclassification of a worker as a contractor instead of a W-2 employee often turns on the actual working relationship, not just the form used, and the correction path can depend on how long the arrangement lasted, whether payroll taxes were withheld, and what records exist for the two years involved. Voluntary disclosure options, amended payroll filings, and any state employment tax issues may also affect how the IRS views the situation. The facts around control, compensation, and whether the worker was treated consistently in records are often central to the response. Working through the specifics with a CPA is the cleanest way to land on the right move.
In your 60-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
“Should I pay someone as a 1099 contractor or an employee for tax purposes?”
“How do I know if I should hire someone as a contractor or employee for taxes?”
“I am hiring my first worker, should they be 1099 or W-2 for tax reasons?”
“What changes on my taxes if I use a 1099 contractor instead of an employee?”
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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