<prompt> Human: I was getting paid under the table but I have decided to get a license in that field. However, to get that license, you need 5 years of experience which must include 5 years Social Security History of Earnings. Which is the best method of getting paid officially? As a independent contractor or an employee? Which one will allow me to pay the least amount of taxes? I dont really need the health benefits since I have good coverage through my spouse. Also my company does not offer any perks like vacation or retirement plans . Thanks  <response>: You can and in fact, legally need to pay your taxes even though you get paid under the table. That would allow you to go back three years, leaving you to only come up with two more.As for how you get paid, you dont typically get to choose whether you get W2 or 1099 nor does your employer, since the nature of your work itself defines whether or not they need to treat you as an employee or a contractor. But as far as better, a W2 means you dont have to worry about withholding or self employment tax.I would warn you, though, that your current employer may become somewhat hostile when you ask them to start reporting your income - Legally, they have no choice in the matter, but they have already broken the law far worse than you have, so your request may look like a threat to them. You may even find yourself unemployed on the spot and the employer denying you ever worked there, in the worst case also illegal, but still a very real possibility. 