If you are applying for an auto loan and you do not have all or even part of your income being reported on your W-2 then that can very quickly create problems for you. It will basically be the same as having a poor credit score and will throw you down into the high risk category in the eyes of lenders. Being a partial employee or a non employee definitely can make things difficult, but hopefully we will be able to provide you with some information that will help to make life easier on you.
Now regular employees at the end of the year are going to receive a W-2, but those who are considered independent contractors on the other hand are going to receive a Form 1099. Receiving one over the other is not necessarily going to mean that is what you should be getting. The IRS though is going to take into consideration three different factors though to know exactly which you should be receiving though.
Knowing what you Are
Now regular employees at the end of the year are going to receive a W-2, but those who are considered independent contractors on the other hand are going to receive a Form 1099. Receiving one over the other is not necessarily going to mean that is what you should be getting. The IRS though is going to take into consideration three different factors though to know exactly which you should be receiving though.
- Behavioral Control - If you receive extensive training or are told exactly what to use, how to do your job, who to work with, etc. then you are typically an employee. If you have free reign then you are most likely an independent contractor.
- Financial Control - If you have a lot invested in your work and have potential for financial loss or gain then you are more than likely going to be an independent contractor.
- Relationship of the Parties - If you receive some sort of benefits such as insurance, pension, vacation time then you are most likely an employee. There are chances though that some sort of deal may have been made even though you are an independent contractor.