1099-Misc recipients who are really employees and the QBID

[cipparulo12345]

I have two clients who get a 1099-misc but are really employees so I file a SCH C. Would it be pushing the envelope to give them the QBID?

[TaxGuyBill]

If they are "really employees" (who should receive W-2s), you should a SS-8 and Form 8919 to treat them as employees.

If they are Independent Contractors (who correctly receive 1099-MISCs), then Schedule C and QBI deduction are correct.

https://www.irs.gov/newsroom/understanding-employee-vs-contractor-designation

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee

[ATSMAN]

As Taxbillguy posted. I would not push QBI. Also you may want to advise your clients that they are really getting ripped off by their employers.

Many years back we had a marketing outfit in our county and they were paying 90% of their "employees" as independents, issung1099-Misc. Three employees(one my client) filed a claim with the labor board and the employer was charged by IRS and DOR, and the employees were paid restitution for the social security taxes not paid by employer.