I work as a loan officer for a brokerage in California and we have always been 1099'd. Since FHA came back, if we want to do FHA loans it's required that the loan officer be switched to a W2 for tax reporting purposes. Well, since then my employer has been taking out 12% for employer taxes on top of my personal taxes and other deductions.

This doesn't sound right to me because I review client's pay-stubs everyday as part of my job and I've never seen such a deduction. Is anybody else experiencing this?