Chapter 5-9 Dealer Plate Advisory Medicare taxes. The employer is also responsible for paying Social Security, Medicare and unemployment (FUTA) taxes on wages and must give an “employee” a Form W-2, Wage and Tax Statement, showing the amount of taxes withheld from his/her pay. A person who receives an IRS Form 1099 from a business is probably an “independent contractor” and not an “employee.” (A person who is not an “employee” and who is paid at least $600 as an “independent contractor” must be given a Form 1099 by the business. An “independent contractor” is responsible for paying his/her own income tax and self-employment tax required by the Self-Employment Contributions Act - SECA. The business does not withhold taxes from an “independent contractor’s” pay and he/she may need to make estimated tax payments during the year to cover expected tax liabilities.) Not that “employers who misclassify workers as “independent contractors” can end up with substantial tax bills and can face penalties for failing to pay employment taxes and for failing to file required tax forms. 04/10 5:57