i agreed to it because i thought it was temporary. when it became apparent that he was going to keep me for awhile, i asked that he put me on the payroll, but he refused. then he cut my hours and i'm sure is about to fire me.
2007-06-23 07:01:10 · 10 answers · asked by gypsy50309 6 in Business & Finance ➔ Careers & Employment ➔ Other - Careers & Employment
I own a small business. According to my accountant, I can pay independent contractors and petty cash, but I must keep a log of it and for my size business, it cannot amount to more than $500.00 a year.
If the person has had you working up to 40 hours a week, been paying you cash or by personal check and you have made over a thousand dollars, then most likely, he is violating the law. He is the one who will get in trouble, not you.. All you have to do is contact the Department of Labor and describe.
He already violated the law if you didn't fill out a W-4 form-to withhold taxes. All employers must have a current one on file.
Edit: This will not affect you getting a job in the future and you will not be penalized. It is probably a good idea to write down the amount he has paid though, so you can pay the amount of SS and state or federal taxes owed. This shows good faith on your part. He is the one who is supposed to pay the SS though and may be forced to pay when it is all over. I have employees too.
2007-06-23 07:12:36 · answer #1 · answered by kriend 7 · 1⤊ 0⤋
I know of an employer quite like this- I think you certainly have a case and right reason to report him. You probably wont get into trouble, because he obviously mislead you about your employee status. And there are all sorts of rights that employees on payroll have vs. those considered independent contractors. In that respect, your boss is taking advantage of you. Have a look at what the IRS thinks, and print out a copy for your boss to read.
2007-06-23 07:59:21 · answer #2 · answered by frippy green 2 · 0⤊ 0⤋
Both state AND federal law regulates this kind of activity. Look up the Dept of Labor website (DOL.GOV) about Compliance Assistance. An employer is required to keep records of payroll transactions and comply with many withholding and payment requirements. The employer can be fined by $1,000 per day, jailed, or even lose his entire business for RICO violations by illegally (without law or court order) withholding wages due to the employee.
2016-04-01 00:58:13 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You won't get a good job reference if he finds out you reported him. File your tax return as self employed and pay your taxes so when he is caught you will be OK. Don't for get to pay your self employment tax. If you land a job this year have extra withholding to cover your self employment income if you didn't pay estimates since wage income is considered even over the entire year.
There are specific laws of who can be considered self employed and who is an employee he can't just decide to make you a contract employee. Since you said he set your hours that is a good sign you are an employee and should get a W2 not a 1099.
2007-06-23 07:09:18 · answer #4 · answered by shipwreck 7 · 0⤊ 1⤋
If you're sure he's about to fire you, then I don't really see any reason not to. However, if he's not about to fire you, reporting him will probably get you fired! Although, even if he is going to fire you, and you do report him, you're probably not going to benefit from it at all. It will most likely only affect him, and you'll just have to be satisfied with knowing that you got him in the end.
2007-06-23 07:07:22 · answer #5 · answered by JB 1 · 1⤊ 1⤋
yea cuz if you report him you are reporting yourself for tax evasion. You have no idea wether or not your boss is going to report you at the end of the year as a self-employed contactor. It is completely legal for him to pay you without taking the taxes out for you, and in fact, it is better for him because at the end of the year he can report all of your wages he paid as loss, and yes you will still have to pay all the taxes he didn't take out only it will be more.
2007-06-23 07:08:18 · answer #6 · answered by zoot 3 · 0⤊ 2⤋
As long as you are excepting the wages, you are agreeing to this. Doesn't exactly make you a moral giant either.
Just quit and get past it. I don't think it would be worth your while to get involved in it.
2007-06-23 07:13:53 · answer #7 · answered by Tilly 5 · 0⤊ 3⤋
Wouldn't that make you a conspirator to tax evasion?
2007-06-23 07:04:50 · answer #8 · answered by Anonymous · 1⤊ 2⤋
I think you have a case. ask a labor lawyer.
2007-06-23 07:15:20 · answer #9 · answered by Diego 3 · 0⤊ 0⤋
yeah report his *** i hate sneaky ****** up employers
2007-06-23 07:04:29 · answer #10 · answered by Anonymous · 0⤊ 0⤋