Can I Get a W2 and 1099-NEC From the Same Employer?
Understand the valid scenarios for receiving both a W-2 and 1099-NEC from one employer and learn the distinct tax obligations for each type of income.
Receiving both a Form W-2 and a Form 1099-NEC from the same company in a single year means you’ve been paid as both an employee and a nonemployee. While this is sometimes legitimate, it can also signal a misunderstanding of your work status. Understanding the distinction between these roles is the first step in determining if your tax forms are correct and how to navigate the specific tax filing requirements.
Understanding Your Worker Status
The Internal Revenue Service (IRS) uses guidelines to differentiate between an employee and an independent contractor based on the degree of control a business has over the worker. This control is examined across three categories: Behavioral, Financial, and the Relationship of the Parties. Correctly identifying your status dictates how you are paid and what taxes are withheld.
Behavioral control assesses if the company can direct how you work. An employee is subject to instructions about when, where, and how to perform tasks. An independent contractor, however, retains control over the methods used to complete a project and sets their own hours and work location.
Financial control examines the business aspects of the job. Employees have business expenses reimbursed and are provided with necessary tools, while independent contractors have a personal investment in their equipment and are not reimbursed. Contractors can also realize a profit or suffer a loss from their work.
The relationship of the parties considers written contracts and if the business provides employee benefits like health insurance or paid time off. A permanent or indefinite relationship suggests employment. A relationship for a specific project or a finite period is characteristic of an independent contractor.
Legitimate Scenarios for Receiving Both Forms
It is legitimate to receive both a W-2 and a 1099-NEC from a single employer in the same tax year. This occurs when you have served the company in two distinctly different capacities, requiring a clear separation of duties between your roles.
One common scenario involves a change in your work status during the year. For instance, a company might hire you as an independent contractor for a project and later offer you a permanent position as an employee. In this case, you would receive a 1099-NEC for the contractor income and a W-2 for wages earned as an employee.
Another situation is performing two separate jobs for the same company. For example, a W-2 employee in accounting who also has a graphic design business could be hired under a separate contract to design a company logo. The payment for the design project would be reported on a 1099-NEC because the work is outside their regular employment duties.
Tax Filing Requirements for Dual Status
When you receive both a W-2 and a 1099-NEC, you must account for both types of income on your tax return. This involves using different parts of Form 1040 and its accompanying schedules. Your tax return will combine the results from your employment and self-employment activities.
W-2 Income
The income reported on your Form W-2 is handled straightforwardly. The wages, tips, and other compensation from Box 1 of your W-2 are reported on Form 1040. Your employer will have already withheld federal income, Social Security, and Medicare taxes, which are credited against your total tax liability for the year.
1099-NEC Income
Income on Form 1099-NEC represents gross receipts from your contractor work and is reported on Schedule C, Profit or Loss from Business. On this form, you list your gross income and subtract the costs of your business to determine your net profit. Business expenses must be ordinary and necessary, meaning they are common and helpful for your type of business.
Common deductible expenses include:
- Cost of supplies
- Software subscriptions
- Business-related travel
- A portion of your internet and phone bills
- A home office deduction for a space used exclusively and regularly for business
Keeping records of all business expenses is necessary to accurately calculate your deductions.
Self-Employment Tax
The net profit calculated on your Schedule C is subject to self-employment tax, which covers your Social Security and Medicare tax obligations. As a self-employed individual, you are responsible for paying both the employee and employer portions of these taxes. This tax is calculated on Schedule SE, Self-Employment Tax.
The self-employment tax is calculated on 92.35% of your net earnings from self-employment. The tax rate is 15.3%, which consists of 12.4% for Social Security on earnings up to $176,100 for 2025 and 2.9% for Medicare with no income limit. An additional 0.9% Medicare Tax applies to earnings over certain thresholds based on filing status.
The calculated self-employment tax from Schedule SE is reported in the “Other Taxes” section of Form 1040. Because no taxes were withheld from your 1099-NEC payments, you may need to make estimated tax payments throughout the year to avoid an underpayment penalty.
Deductible Portion of SE Tax
The tax code allows you to deduct one-half of your self-employment tax when calculating your adjusted gross income (AGI). This deduction acknowledges that employers get to deduct their share of Social Security and Medicare taxes. This deduction is claimed on Schedule 1 of Form 1040, reduces your AGI, and can be taken even if you do not itemize.
Addressing Potential Worker Misclassification
Receiving a 1099-NEC for work you believe should be classified as employment warrants action. Worker misclassification occurs when an employer improperly treats an employee as an independent contractor to avoid paying employment taxes and providing benefits. If you suspect you have been misclassified, you can address the issue with your employer and the IRS.
The first step is to discuss the matter directly with the company. It is possible the dual forms were issued due to a clerical error or a misunderstanding of your role. A conversation with the payroll or human resources department may resolve the issue, leading the company to issue a corrected Form W-2c.
IRS Determination (Form SS-8)
If discussions with your employer do not resolve the issue, you can ask the IRS to make an official determination of your worker status by filing Form SS-8. This form asks detailed questions about the work performed, the financial arrangement, and the relationship between you and the company. The IRS will review the facts and issue a determination letter, though it can take six months or more to receive a ruling.
Tax Filing as an Employee (Form 8919)
If you believe you were misclassified but need to file your tax return before the IRS rules on your Form SS-8, you can use Form 8919. This form allows you to report the income from your 1099-NEC as wages and pay only your share of Social Security and Medicare taxes (7.65%). By filing Form 8919, you assert that you should have been treated as an employee and shift responsibility for the employer’s share of these taxes to the company.