Cannot get a corrected 1099K as an employee

[Mid-Cen]

Same situation here, except I am the employee incorrectly issued 1099K for the business. It was not made clear (enough) during the sign up process that my name would be tied to sales, and business income always went directly into bank account for the business. This is a huge mess now, because Square will not issue corrected 1099K without bank records from business owner, and I don't work there anymore, and am not able to make contact with them. The customer service rep at Square admitted to me today, that incorrect 1099Ks is an issue they are dealing with everyday, and they admitted that the root of the problem lies in the initial set up process lacking very clear instructions and warnings. (I should say I set up square for my employer in 2019, so not sure if things have improved since then). 

[TheRealChipA]

Hi there @Mid-Cen.. So, to be very clear here.... are you saying that you used YOUR SSN to help a previous employer set up a Square account?  If so, then honestly this is not Square's problem, and never has been.  It is very common knowledge that in this country (and in most countries, really) whatever tax ID is used to set up ANY financial account becomes the tax ID that is responsible for all sales/revenues for that account.  It does not matter, and has never mattered, where the funds are deposited.  What matters is who is considered beneficial owner(s) of a card processing account, period. If a Square rep really "admitted" that the problem was due to lack of clear instructions and warnings, then most likely that Square rep should be fired because that was very, very bad and incorrect information.

Your issue here is with your old employer.  It sounds like they were using you and your SSN to do something they could not do, or did not want to do.  Whether or not they had bad intentions, this is very much a legal matter.  You need to retain an attorney and get them to file whatever suits are necessary to force your old employer to fix the records.  If they won't, then this is most likely bordering on fraud and they could be in serious legal and tax jeopardy.  Heck, it might even rise to the level of identity theft if your old employer is willfullly using tax IDs for their Square account that are not legally theirs.  In any case, this is a legal matter and in order to protect yourself you need to contact an attorney ASAP.

Good luck.

[Mid-Cen]

I am going to disagree with you that it's common knowledge, because there are countless other people in my exact situation. Go to reddit forums, and you will see PTA parents that set up Square for fundraising, and they did not know about a 1099-K that would be issued. They are now having their personal bank account frozen, or garnishment of wages by IRS. I also read about the president of a non-profit who set up for event, and as per Square's requirement he put in a social security number, not knowing that it would be tied to this 1099-k. 

You are assuming that the people setting up these accounts have knowledge about tax protocols, that they just do not! I know that there are hundreds, if not thousands of people, whose lives are turned upside down because of this. I feel strongly that Square should put in bold writing, during sign up, 
"this social security number will be tied to all revenue from this account, and you will receive 1099K, and it will be sent to the IRS". Then, there should be very clear instructions on what to do, if you do not want your personal social security number associated with the account for this purpose, because of the implied risk. 

The other problem for people like me, is that we are not dealing with business tax issues, so we don't go into the tax section of the Square account, and are not aware at all that there are 1099's in our name. So, we have no idea, year after year, that this is happening (because Square does not mail the 1099 K). 

I had many good years with Square, but what has happened at the end, is such a headache for me, that it has completely changed my feelings about the company. The business that I worked for did nothing wrong. We hooked up the account to the business bank account, and they paid taxes on all the income that came through Square.  In conclusion, I can tell you that this is huge problem for many people, that could be fixed with clear bold text during the sign up process, that if you put your social security in there, you will personally be held responsible for paying taxes on it, even if the company plans to or does pay the taxes themselves.