I need to report my employer for calling me an independent contractor and not taking taxes out for me.?

Question

When she hired me she took advantage of the fact that I knew nothing about "self employment", so when she told me that I would be working for her real estate office as an administrative assistant/secretary and working 40 hours a week, for $8 dollars an hour, but I would need to do my own taxes, I was apprehensive but needed a job quick. I have come to find out that she is taking advantage of me. I am having to take out a substantial portion of income to keep up with the self employment taxes. She told me that I am an independent contractor and do whatever she says, and once in a blue moon she will have run an errand locally, but 99% of the time, I sit behind a desk and take orders from her all day. I am even admonished if I am 2 minutes late. She said that all her agents, including herself, are independent contractors and self employed, but they get commission and such. I work the same hours-mon-fri. How do I go about reporting her? Am I right do do this? I want to find another job...

I am a teacher and looking for teaching work, but won't find that (hopefully) until August. In the meantime, I am trying to find another low paying secretarial job to keep myself afloat. I am constantly being disrespected at work and treated like a second class citizen. It's adding insult to injury. Had I not learned that what she was doing was wrong from wonderful yahoo answer users, I would have carried on being taken advantage of. I would rather take the risk of reporting her, consequences given to her, and I lose my job, than to sit here and do nothing about it. It's not right.

Also, why would she feel such a need to not take taxes out on me? How does she benefit from this? Am I am a tax-write off for her? What would make her so adamant abotu NOT taking taxes out of rme? I am must trying to understand what could compell her to do something like this?
Am I justified in feeling like I do, or she is on the up and up?

Answer 1

Who is an Employee?
A general rule is that anyone who performs services for you is your employee if you can control what will be done and how it will be done.
Who is a Common-Law Employee (Employee)?
Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.

To determine whether an individual is an employee or independent contractor under the common law, the relationship of the worker and the business must be examined. All evidence of control and independence must be considered. In an employee-independent contractor determination, all information that provides evidence of the degree of control and degree of independence must be considered.

Technically what she is doing is illegal


Complete for SS8


http://www.irs.gov/pub/irs-pdf/fss8.pdf

http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

Answer 2

She is breaking the law by not taking out your taxes and paying the employer taxes on your earnings. She might not be violating the law deliberately, it could well just be ignorance, since if her other workers are real estate agents, they could well be considered independent contractors. But with your job duties, you are NOT, you're an employee.

Or maybe it is deliberate, and she's just trying to save paying the employers share of social security and medicare taxes, and other taxes that the employer is responsible for.

You've gotten a variety of good advice here already on how to report this.

Answer 3

Here is the link to the IRS

http://www.irs.gov/help/article/0,,id=96730,00.html

You are NOT an independent contractor. Make sure that you save all documentation. Certainly your employer will be forced to pay the IRS and you have a significant legal claim against her for any taxes you have wrongly paid. Additionally, if she fires you for contacting the IRS you can sue for wrongful termination.

She is certainly taking advantage of you. You in no way meet the criteria of someone who is an independent contractor.

Edit note to Rob - Not just technically but morally wrong as well.

Edit note to rwl_is_taken - You are wrong. Her ignorance of the law is her bosses fault. It is the employers responsibility to know what tax category employees fall into. If they are not sure then they need to ask.

An example that might make more sense is calling someone a manager so that you don't have to pay them overtime. If they do not manage anyone then the employer owes that person the overtime they failed to pay. Even if the employee was thrilled to sign on as a manager and was given a base pay that took into consideration the fact that they would be working overtime.

Answer 4

You are correct. You should be an employee.

Fill out an SS-8 and send it in.

Your state unemployment commission will probably move a little faster than the IRS though. Your boss is also avoiding paying unemployment taxes on your salary.

What ever "agreement" was between you and your boss at the start is irrelevant in determining whether or not you are an employee or not.

Answer 5

Those who said to file the SS-8 and get your state involved are correct. Your boss is willfully disobeying the law and cheating you and the rest of the taxpayers.

Answer 6

YOU ARE AN EMPLOYEE; HOWEVER, HER OTHER AGENTS ARE INDEPENDENT CONTRACTORS. YOU SHOULD CUT TIES WITH THIS EMPLOYER AND CONTACT YOUR LOCAL SOCIAL SECURITY OFFICE FOR ASSISTANCE.

YOUR EMPLOYER'S BENEFIT IS THAT THEY DON'T HAVE TO PAY THE EMPLOYEES PORTION OF SOCIAL SECURITY OR MEDICARE TAXES FOR YOU NOR UNEMPLOYMENT OR WORKERS COMP.

Answer 7

your ignorance of tax law is not your bosses fault....if you were unsure of what being a self employed contractor meant then you should have asked for specific information.
if you were unsatisfied with the answers you received but needed the job then you could have taken the job as a stop gap measure and continued looking for other employment.

What could you possibly have to report her for? She disclosed that you were responsible for your own taxes.
You get a paycheck for showing up while those working on commission have to sell to get paid.

You could have turned the job down--you chose to accept employment.

I do not mean to offend--I do understand because my mother was a teacher and worked odd jobs during the summer--but you were not lied to or tricked. you were informed and that was all that your boss was required to do-YOU choose to accept the job. You could have taken a day to think about it and done some research on self employment taxes to help you decide.
Accept the consequences of your own lack of initiative.
peace.

Answer 8

I would talk to an accountant and see what you can use or deduct for business expenses, mileage ect.