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Established Member
601pink15
Posts: 32
Registered: ‎09-14-2013
0

Do I really have to wait two years??!?!

So I graduated last year & it took me a while to find a job in my field. The first was temporary,which was W-2 but I've since found a permanent job which is 1099. After raising my score I would like to apply for a mortgage. But do I really have to wait TWO years?!?!? I hope not but everywhere I look says I will have to :smileysad: I really don't want to rent another 2 yrs of my life!!
Established Member
601pink15
Posts: 32
Registered: ‎09-14-2013
0

Re: Do I really have to wait two years??!?!

I also forgot to mention even though I'm paid by 1099,I'm not a business owner. I work in a dentist office under a dentist. I get paid a set amount each day. Nothing less,nothing more.
Established Member
FaaastCash
Posts: 17
Registered: ‎09-22-2013
0

Re: Do I really have to wait two years??!?!

Do you have steady income for the past 2 years?  You will be asked to document your income using pay stubs, W2s, 1099, tax returns, etc. for the previous 2 years. Do you receive other forms of consistent income that you would like to use to qualify - such as social security, 2nd job etc.? 
 
 

Established Member
601pink15
Posts: 32
Registered: ‎09-14-2013
0

Re: Do I really have to wait two years??!?!

No for the past two years & more I've been in school,I just graduated last year! I'm working in the same field as my degree,I just have an employer who insists on paying me by 1099 even though I've asked otherwise in hopes for a mortgage.
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Senior Contributor
StartingOver10
Posts: 4,581
Registered: ‎03-06-2010
0

Re: Do I really have to wait two years??!?!

[ Edited ]

601pink15 wrote:
No for the past two years & more I've been in school,I just graduated last year! I'm working in the same field as my degree,I just have an employer who insists on paying me by 1099 even though I've asked otherwise in hopes for a mortgage.

Your job would not fall within the guidelines to be a 1099 type job.  1099's are used for independent contractors that set their own hours and methods. A good example is a sales person that works on a commission basis- so the income is not hourly or salary and is results driven. The general rule is that the payer only has the rights to direct the results of the work and not how or when  the independent contractor does the work. Here is a link to the IRS website that gives you the info on the difference between an employee and an independent contractor: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-(Self-Employed...

 

Where this is a difference for you is that you are responsible100% for your income taxes when you are paid 1099 and your employer does not contribute at all. Naturally this reduces the amount of your income right off the top substantially more than if you were a W-2 type employee.

 

From what you describe, you sound like an employee that needs to be paid on a W-2 basis. An employer can not just decide that you are to be paid on a 1099 basis. There is specfic criteria he and you have to meet in order to qualify. Study up on the criteria and go back into your boss to discuss (obviously you need to know that there are ramifications if you do this - and ramifications if you don't straighten it out, be careful here).

 

 

 

Established Member
601pink15
Posts: 32
Registered: ‎09-14-2013
0

Re: Do I really have to wait two years??!?!

No luck in that department. I talked to him yesterday about switching me over to permanent W-2 because it's easier for me to obtain a mortgage since I've been working in my field since graduation & he flat out refuses. Insisting that my salary is too much for him to pay his share of taxes in so many words. I've been researching the criteria & I obviously qualify as an employee because everything I do is mandated by them. I'm stuck between a rock & a hard place. There really is no hope for me to obtain a mortgage is there?!?!?
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Senior Contributor
StartingOver10
Posts: 4,581
Registered: ‎03-06-2010
0

Re: Do I really have to wait two years??!?!

Take the mortgage out of the thought process for a moment as this is a larger issue than obtaining a mortgage.

 

He is not paying you under the right basis. You don't meet the 1099 criteria.  You are misclassified and the employer will have consequences if caught. Yes, you are responsible for all of your taxes including what normally is the responsibility of your employer. You have the worst of two worlds.

 

http://en.wikipedia.org/wiki/Misclassification_of_employees_as_independent_contractors

 

So there is a larger issue here, do you want to continue to work for someone that clearly isn't handling his business in the proper way and get caught up in the penalties? Or do you want to have a very frank discussion with him to straighen out this error in judgement? Or just find a job where the employer does what he is supposed to do? Look at the long term.

Established Member
601pink15
Posts: 32
Registered: ‎09-14-2013
0

Re: Do I really have to wait two years??!?!

You're right. I've considered & looked into finding another job but unfortunately I can't seem to be able to find another job right now as it took me so long to find this one. Jobs in my field (dental hygienist) are very scarce in my area. I would love an opportunity to work somewhere else. But until then it's either be broke(which is not an option) or work for the boss from Hell.
Senior Contributor
fishbjc
Posts: 3,439
Registered: ‎11-30-2007
0

Re: Do I really have to wait two years??!?!

My neighbor investigates this sort of crap.  He wants to be a business, but not pay his dues.  WRONG. 

 

 

New Contributor
stillworking
Posts: 72
Registered: ‎09-25-2013
0

Re: Do I really have to wait two years??!?!

I am a nurse and worked agency, 1099 debacle... according to the IRS that was wrong.  I just graduated and school counts as part of your two years.  Do not have loyalty to a lender. When someone tells you no, find the yes man.


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