Question on 1099 employer/employee status

He's the employER, you are the employEE. 'nuff said.

it depends on how you are filing your taxes. as long as you fit the bill for being an independent, like you acted on your own as opposed to under his direction etc., then you should be fine holding up your case. just call the irs and ask for advice, seriously.

Question for ya wrote:

Can a employer get in trouble for treating 1099 independent contractors as employees ?

I was hired as a 1099 independent, now the guy he trying to give all sorts of mandatory hours and so forth. any thoughts ?

He is the employer, if you want to work for him, either as an employee or as an independent contractor, then he calls the shots....duh.

He is the employer, if you want to work for him, either as an employee or as an independent contractor, then he calls the shots....duh.[/quote]

This isn't exactly correct. Here is a quick excerpt from the IRS:

Caution: If you incorrectly classify an employee as an independent contractor, you can be held liable for employment taxes for that worker, plus a penalty.

Who is an Independent Contractor?

A general rule is that you, the payer, have the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result.

Example: Vera Elm, an electrician, submitted a job estimate to a housing complex for electrical work at $16 per hour for 400 hours. She is to receive $1,280 every 2 weeks for the next 10 weeks. This is not considered payment by the hour. Even if she works more or less than 400 hours to complete the work, Vera Elm will receive $6,400. She also performs additional electrical installations under contracts with other companies, that she obtained through advertisements. Vera is an independent contractor

Also, an employer can become legally liable for the negligence of an independent contractor if they violate similar rules as the above.

JMo wrote:

He is the employer, if you want to work for him, either as an employee or as an independent contractor, then he calls the shots....duh.

This isn't exactly correct. Here is a quick excerpt from the IRS:

Caution: If you incorrectly classify an employee as an independent contractor, you can be held liable for employment taxes for that worker, plus a penalty.

Who is an Independent Contractor?

A general rule is that you, the payer, have the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result.

Example: Vera Elm, an electrician, submitted a job estimate to a housing complex for electrical work at $16 per hour for 400 hours. She is to receive $1,280 every 2 weeks for the next 10 weeks. This is not considered payment by the hour. Even if she works more or less than 400 hours to complete the work, Vera Elm will receive $6,400. She also performs additional electrical installations under contracts with other companies, that she obtained through advertisements. Vera is an independent contractor

Also, an employer can become legally liable for the negligence of an independent contractor if they violate similar rules as the above.[/quote]

You're right, I oversimplified things. We would need more info.

Most times employers attempt to play the "Independent Contractor" card so you have to pay the self-employment taxes, rather than the employer having to pay payroll taxes. Most times, if the duties, hours, etc. are what an EMPLOYEE would normally do, then you are an employee. That said, if it is a small business, you probably aren't going to win in the long run (no pun intended).

-Larry

I am in sales, the guy I am working for is now demanding that that I sit in a office all day and do what he says for every minute. The odd thing is he has been happy with my sales but thinks if he pushes me "we" will make more money. He screams and yells and is a total jerk.

He takes no taxes out and only pays me once the commissions are paid.{which is fine thats the deal} He is such a jerk I worry he will say forget it and keep my commissions which now total in the thousands if I bring it up. Before any sales were made he was ok now that a decent amount of money is in the pot he is a ass. You'd think he would be happy but nooooooooooo. Anyway if he cuts me loose I guess I can go to Labor board and say there was a employer / employee relationship and he owes the taxes on the commissions.

Thanks for the serious responses.

question for ya wrote:

Thanks for the serious responses.

What's your question?

chuck d , can the employer get in trouble for doing this crap ?