1099 contractor postion in F1 status

[tokkalodi]

Hi,
I'm a masters student in F-1 status. I was offered an 1099 contractor internship position in May 2008. I got my CPT authorization from Office of International Education (OIE) to work from May 2008 to Dec 2008 (which includes my allowed two semesters of CPT). After working for 3 months now, one of my school's payroll employee mentioned to me I can't work as a 1099 contractor position under F-1 status. She said its a technical immigration violation. She also mentioned it might pose problems when I go for my H1-B or Green card. I'm still working at the company. I'm not sure what i should do? Can you guys please suggest something.
Thanks

[txh1b]

1099 is for Independent contractor and on F1, you cannot be one. What you heard from the person is right. You have violated the immigration status by doing so. On 1099, no taxes are withheld and you need to pay the taxes as if you are a self employer.

Get yourself changed over to W2 in the past and for the future. Have the employer deduct the taxes and generate payroll. Otherwise, you are in for BIG trouble.