Taking pay on 1099 and W2 from same employer (in the same month)

[jay1234]

Hi all,

i need your help in understanding this matter well. I am on H1B with an employer and he has been paying me on W2. As per our agreement he was required to pay me more amount for the month of April and somehow he convinced me that he can pay the regular amount on W2 and the rest on 1099 and that's fine. I had doubted this at that time but later believed to what he was saying. Recently again one of my frends mentioned that I cannot take pay on 1099 on H1B and that may affect my GC process.

I would really appreciate if someone can answer this question:

Is it OK to accept pay on W2 as well as 1099 from same employer ? how can it affect my GC process ?

[knowledgeable]

Up to a certain ...

... reasonable amount you're allowed to get paid on 1099 as long as you ensure that this is declared in your next year's tax returns and you pay the required taxes for the same.

Usually, in most cases, USCIS does not care too much on how you get paid as long as the major terms of your visa are not in violation.

I've known a lot many people to get paid from different consulting companies via 1099 while they're on W2 payroll with their main sponsor.

However, remember the word "reasonable" used above.

At the same time, it seems too fishy even for IRS for the same employer to keep you on their payroll but still pay you via 1099. Actually, in this case it'll be the employer who may, just may land into trouble with the IRS, but not you. I know why they're doing it this way, but it's beyond the scope of this question so we won't get into that.

Good luck.

[txh1b]

H1b pay has to be on W2. Per-diem payment can be on !099-Misc but documented for your own benefit.

Wage Payments on 1099 for H1b employees is illegal and could cause problems later on. Such payments are for independent contractors and on H1b you are NOT independent at any point in time. It is an employment tax evasion scheme employmed by unscrupulous employers. Stay away from it.