I was an employee of a subcontracting firm deployed to Afghanistan from Dec 2015- Dec 2016. Originally i was a w-2 however my employer never filed my w-2. Now, after threatening to report him to the IRS for tax fraud, he has told me he didn't know how to file for my state so he is just putting me through as a 1099 and returning my withheld taxes. i have a couple issues with this.
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As an employer doesn't he have a 7.2% tax burden.
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If so, because i was outside of the US for over 330 days and am exempt from taxes, and he only returned my share doesnt he technically owe me that 7.2 %
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He also emailed me around my 6 month mark offering to bump my pay 10k for switching to a 1099 because his additional tax burden. Since he involuntarily switched me shouldn't I receive the pay bump?
Submitted March 03, 2017 at 06:17AM by YawnP http://ift.tt/2mi3LDP