The manager tell me that they have to employe me because I am working to many hours at their company but for me is better to be 10 99.
2007-09-07 17:47:57 · 5 answers · asked by Lorena 1 in Business & Finance ➔ Corporations
The number of hours that you work takes you out of the independent contractor status. This means that the IRS will no longer allow them to have you there unless you are an employee. As a contractor you pay your own taxes and social security taxes but under the law you are an employee.
Your options are to quit and find a new contracting job or accept the employment offer.
Read the link from the IRS Below
2007-09-07 17:54:13 · answer #1 · answered by justgetitright 7 · 0⤊ 2⤋
It's not the number of hours. But if THEY determine what hours your work, and various other working conditions, then yes, by law you are considered an employee and not a contractor. If you are paid by the job, and you control when and how you do it, then you'd be considered an independent contractor.
How is it better for you to be 1099? You pay more taxes that way. By making you an emploiyee, the employer ends up paying some of what you otherwise would have to pay yourself.
2007-09-08 01:44:08 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
If you are an independent contractor, you make the rules. There is no limit to how many hours you can put into a job.
It sounds like the company that you are talking about wants to have you as an employee. It would be much cheaper for them to simply pay you a wage instead of paying you for a contracted job.
I see absolutely no advantage in you doing that. Sounds like this guy is just trying to save a buck!
2007-09-08 01:39:43 · answer #3 · answered by conim2002 4 · 0⤊ 0⤋
Dude, if you can avoid being on a 1099 as an independent contractor do it. First you have to pay all of the taxes on your own, you have to make quarterly payments to the IRS, and then you have to pay your social security and your medicare all by yourself with no help from the company. Being employee will resolve all of those issure. just make sure you don't go salary for all of those hours. Employees get overtime for anything over 40 hrs in a week, so that would possibly be even better for you. The tax burdens are to great if you have the opportunity to be an employee you will be further ahead.
2007-09-08 00:56:26 · answer #4 · answered by logicboy 3 · 0⤊ 2⤋
As an indepenendt contractor you can work as many hours as you want. The company that pays you however can have their own rules about how much they pay for contract labor. The IRS does not care how many hours you work, only that you pay the taxes on what you are paid. I was self employed for twenty years and worked a great many hours.
2007-09-08 00:59:23 · answer #5 · answered by Charles C 7 · 2⤊ 1⤋