I have worked for this company, off and on, since February of 2004. When I say 'off and on', I mean I've worked until work slowed and then I would go work at another company until work picked back up (construction). At first I was getting paid as an actual salaried employee (taxes taken out, etc.), and then after around roughly a year, work slowed down and I got another job. After about 2 or 3 months, I quit my job and went back to this company because I could make a lot more money. I have done the same thing over and over, except I have been getting paid 1099-MISC since early 2005. I have asked him several times over the whole course of time, if he would start taking out my taxes again. He has always promised me or avoided my question some how. I've been riding in company vehicles and I work next to a guy that has his taxes taken out. I have my own tools but they supply materials and ladders, etc. Is this 1099 Misclassification?
2007-09-17 04:16:05 · 3 answers · asked by J Bird 1 in Business & Finance ➔ Taxes ➔ United States
Also, this is the state of Georgia and we are right outside Atlanta if that helps.
2007-09-17 04:16:49 · update #1
How do I report this if it is?
2007-09-17 04:27:17 · update #2
Sounds like it probably is misclassification. You can fill out a form SS-8 and have the IRS decide.
2007-09-17 04:33:34 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
You have gone off and on the payroll over and over since February 2004. I don't believe you have a really strong case to be an employee. It could be argued that both you and the company understand you will come and go as you please.
The company has a core of regular employees and then adds on independent contractors as demand requires. This is common in the construction business.
You could do as suggested and protest this to the IRS, if you cannot get the company to put you back on as a salaried employee.
Alternately, accept the 1099MISC and take your Schedule C deductions.
2007-09-17 15:22:36 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
You definitely sound like an employee. In my state, California, you are very limited as to how much construction work you can do without a licensee (except as an employee). Find out what kind of laws your state has by calling the agency that licenses contractors
2007-09-17 05:05:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋