I think my boss is pulling a fast one on the IRS when it comes to independent contractors working for her....?

Question

Okay I think my boss is making everyone in the office a 10-99 so she doesn't have to do actual employment things can you tell me if this is a 10-99 employee or a regular employee:
-Must be in at 9:30am and work until 4:30pm (Monday thru Friday)
-Was trained specifically how to do the job
-Recieves a bi-weekly paycheck
-Get repremanded via verbal warnings and write ups

Okay that's just the jist of it but I think that seems more like a regular employee to me....does anyone have any info on this?

Answer 1

I've done independent contracting work, and I've also hired independent contractors. An independent contractor is someone who is hired for a certain job, for a certain purpose, by contract. In other words, if you are an independent contractor, you have a specific written contract with your employer, stating what work must be done by you, and often at what times/dates. Generally, independent contractors receive no benefits (health insurance, paid time off, 401/K, etc.), and the independent contractor is responsible for paying all taxes (in other words, no taxes are deducted from your check). You should be filing invoices with your employer to receive payment, unless the contract stipulates that payment will be provided on certain days, and invoices from you are not required.

As a filmmaker, I often hire independent contractors to help on a shoot. These include the actors, makeup artists, sound technicians, and camera operators. These people have contracts with me stating what work they are expected to perform, and for what compensation, and also the hours they are expected to work (for example, everyone must be on-location ready to work by 7:30AM).

Generally, the advantage for the employer is simplified record keeping: the employer does not have to collect and pay your taxes for you, nor do they have to provide you with any benefits. So, there is far less overhead for a company dealing with only independent contractors.

All of the things mentioned in your question could easily be terms of a contract between a company and its independent contractors. Check your paystubs for evidence of deductions for benefits or taxes. If either are being taken out of your pay, then you most likely are not an independent contractor.

Hope this helps.

Answer 2

There are specific things the IRS looks for when determining if you're a regular employee vs. an independent contractor.

The biggest thing they look at is this: If the payer only has the right to control or direct the RESULT of the work, and not the MEANS or METHODS of accomplishing the result, then the worker qualifies as an independent contractor.

None of the things you mention above specifically exclude you from being an independent contractor, but your boss should be aware of what she is doing and ensure that she is in compliance with IRS regulations.

Check out the PDF I've referenced below. It should help educate you and your boss. Good luck.

Answer 3

Sounds like an employee to me.

You can use from SS8 to have the IRS determine whether or not you are an employee or not.

Also, you can report her to your state's unemployment office. They tend to move faster.

Answer 4

Sounds like 1099 is OK to me.

If you have any benefits, health care or paid vacation time it would change that.