I was asked a question about a minority owner who was a FTE of a small company that was getting a 1099-NEC and not a W-2.

I was taken aback, since if they are one of the actual employees of the firm working day in and day out as a employee and not an independent contractor why the 1099?  Can an owner be an independent contract by definition…

My opinion was that this minority owner was being taken advantage of, they were not eligible for the company health plan, as the other owners were.  I believe that this person is being taken advantage of to their determinant.

My recommendation was for the person to setup a meeting with the other owners and demand equitable treatment otherwise they would be hearing for the minority owner’s attorney.

I haven’t heard of the outcome yet, but it pisses me off when people bully and push around kindhearted people for their own benefit and greed.

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