Is a non-employee end of the year form better than a 1099?

ByPam Newman

Opinions expressed by Entrepreneur contributors are their own.

For 6 months last year I worked as a private contract therapist for a man who holds a contract with Washington State for therapy. I paid all my own expenses. He did not send a 1099; he sent a form claiming my pay as a "non-employee" expense. Is this beneficial to me? Legal? I have an LLC.
I'm not sure what you are referring to as a "non-employee" end of the year form. A 1099 is a form that states the amount you were paid as a non-employee aka subcontractor. If you did not have payroll withholding, then you are technically a subcontractor and therefore will claim your own income and expenses through your own business and personal tax filings.
Wavy Line
Pam Newman is a Certified Management Accountant, author and Certified QuickBooks ProAdvisor for Financial and Point-of-Sale software. She is also president ofRPPC, Inc., which provides customized business development services.

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