<prompt> Human: This is in Texas. I worked for a family business last year until the end of 2016 and am now working for a new company. When I got my w2 only 14th of my taxes were paid for 2016. My old employer is now telling me that I need to file a 1099 even though my taxes were withheld from every check last year. He was just pocketing my tax payments without telling me. What should I do about this? Edit: thank you guys so much for the help! I plan on calling the DOL tomorrow morning to get this situated. Assistant: Employers do not get to decide who is a 1099 contractor or W2 employee; there are legal tests that make the decision for them. Sounds like this guy is up to some shenanigans. Like others have said, Id insist on a corrected W2, and file a report with your state regulators immediately and possibly with the IRS as well just to get the ball rolling in case your hopefully former employer decides to continue with this behavior.Human: What can be the consequences if I do the 1099? I do not plan to. Just curious.  <response>: He stole from you and the tax man, and basically wants you to say you stole from the tax man. 