No W-2 wages from Goodwill Industries?

[Midwestmuskie]

Client worked for Goodwill Industries. She is disabled. According to the wage records she was paid $9.00/hour. She did not receive a W-2. She received a 1099 with the amount received shown as "other income". Should this be reported as self-employment income or is there a special exemption or program involved with Goodwill Industries that no FICA is owed?

[PhoebeRoberts · Accepted solution]

https://secure.ssa.gov/apps10/poms.nsf/lnx/0302101270

"Sheltered workshop" pay is generally not wages, nor is it SE income. 

[Midwestmuskie]

Thank you for that information. Exactly what I was trying to find.

[itonewbie]

The key is still whether there is an employer-employee relationship.  The administrative exclusion provided for by the IRS back in the 60's, which is still effective today, only applies to participants in short-term rehabilitation/training programs.  Presumably, your client is within this class of workers and was issued a 1099-MISC.

Participants who remain with sheltered workshops in long-term roles after such programs would still be classified as employees in general and their wages would still be subject to reporting on W-2 and employment taxes as usual.

[itonewbie]

Did you review her agreement with Goodwill Industries to check whether there is or could be an employee-employee relationship?