On October 13, 2022 the Federal Department of Labor published findings in Vol. 87, No. 197 of the Federal Register.
The W-2/1099 controversary hits many businesses. As stated in previous posts, there is no special 1099 consideration for mortgage loan originators.
Regardless of which state you work in or which type of employer your work for, Mortgage Loan Originators are required to have their income reported on IRS Form W-2.
There are many companies that believe the states have overriding authority. I respectfully disagree. Federal tax law must be complied with no matter what the state law dictates.
If the DOL is publishing recent updates to misclassification of employees, suffice it to say, enforcement will be next.
We strongly recommend any company reporting income on a 1099 instead of a W-2, to consult with a CPA or tax attorney.
For more information contact: Debra Killian (866) 256-3766 or firstname.lastname@example.org.