Are there any IRS employees on this board or anyone who is familiar with taxes? I recently got a new job and they are classifying me as a 1099 independent contractor. I know this can't be right since I adhere to the work schedule they have provided me, use their equipment, get paid hourly, and am definitely treated as an employee. If I file an SS-8, does the employer know who is protesting?
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Did your employer make you aware you were working as a independent contractor before beginning your job? You can fight it if that is the case. If you had known sooner you could have been paying your taxes quarterly.
I am in a very similar situation and am curious to know the answer. I have been working for the same company for many years and we always get 1099 instead of W-2. Paying self-employment taxes sucks and I feel like the company gets the advantage of not having to contribute toward social security. I don't know what other benefits that company gets by not having me as an "employee". I don't know that I would file a complaint though because they pay us pretty well. Recently I haven't been happy with how we are treated and I started thinking about whether or not we are being taken advantage of by keeping us Independent Contractor.
Companies like calling employees 1099 because they don't have to pay taxes on them and can avoid offering them benefits if they so choose. Especially with Obamacare coming down the pipe for a lot of these companies they like avoiding the benefit issue.
A long time ago I used to work for a company full-time, in an office, yet got paid as an independent contractor. When I first got the job the boss never told me about being an IC.. instead she said "and what's so great about this job is you don't have to pay taxes on your paychecks!" Of course I accepted the job offer. It still upsets me that they took advantage of a teenager like that. I really wish I'd reported them to the IRS. I remember talking to an IRS consultant, however, as well as a couple of tax specialists, and they told me that it was wrong (not sure about legality) for companies to pull this kind of maneuver. If you can report them, do it.
They will know if you file. IRS will come to the employer for more information and their share of FICA taxes. This is a hot topic right now, and the IRS would certainly side with you based on your facts.
WTF kinda business is that based on the info you gave to 1099 you? Also, did you ever check your pay stubs?
You can file as a W2 employee in the situation you've laid out. However, I believe they'll investigate, as has been previously mentioned in this thread, but that they'll likely side with you.
I definitely was not made aware that it was a contract job, I've just recently started this job. Recent enough to where I have not gotten a first paycheck yet. However, what has got me concerned is that I have been scheduled to work 45+ hours this week and if I understand correctly, being a 1099 does not entitle you to overtime?
Yeah, good luck getting anywhere w/the fed's. I had the same deal at a job that I worked 40 plus hrs a weeks, no perks or benefits. Finally had enough and went to the DoL and filed a complaint. After a month a half I got a letter stating, blah blah blah up to 30,000 cases a year. Sorry we cannot help you. And during the interview the DoL agent kept telling me I was mislabled as contract.
If you were not made aware, then yes, you have a case. 1099 is a legitimate way of conducting business, but it should be written up as a contract. And no, you are not entitled to overtime. Thoughts and suggestions: If an employer is willing to screw over their workers in this manner, they aren't worth working for. You're better off bailing. Feel around and find out if others there are being treated the same. Notify them that they are getting screwed and show them the IRS site/literature. If you continue to work there, document everything, including hours worked. If overtime isn't paid, make note of this. When you are ready to leave, you can sue them for lost wages and taxes. You can further back this up by emailing HR/payroll if you are a employee of the company or 1099. Again, this is if you did not sign a contract. Double check anything you have signed.
It's up to you if you want to continue working this way. If you ask, the company will most likely tell you the advantages of being a 1099 worker. Keep in mind that it is not you that is violating any law, and that it is your employer. Know that even if you file a claim, you will still be subject to your half of FICA taxes (7.5%). Email me jamesatgsu@gmail.com if you want more information or my full advice on this issue.
You'll get to deduct expenses to lower your tax liability. Car, gas, insurance, phone, internet,computer, etc ...
