he had over 20 employees this summer.He provides all the tractors,fuel,work vehicles,etc.And worked over 100hour work weeks through summer four 120dollars a day.regardless of hours worked.So is he not liable too take out taxes?
2007-11-25 19:50:50 · 7 answers · asked by fred b 1 in Business & Finance ➔ Taxes ➔ United States
He's cheating on his taxes and cheating you as well, out of part of your Social Security taxes and overtime pay. File a Form SS-8 with the IRS to get a determination on your status as an employee or contractor. Since he's providing the workplace and tools and specifying the work hours then you are almost certainly an employee. Here's a link to the Form SS-8: http://www.irs.gov/pub/irs-pdf/fss8.pdf
2007-11-25 22:00:34 · answer #1 · answered by Bostonian In MO 7 · 3⤊ 0⤋
You or your employer can't just decide that you are independent contractors, it depends on the work you do. It sounds from your description like you are employees, not contractors - so yes, he'd be responsible for taking out taxes and paying the employer taxes. The paper you signed is meaningless, and won't hold up at all with the IRS.
You can file a form SS-8 to ask the IRS to make the determination of what your status is. The owners are breaking a number of federal laws, including not paying minimum wage and overtime for hours over 40 a week to employees.
The IRS will come down on the owners over this. Of course, that means you and your coworkers might not have a job after they do.
2007-11-26 10:52:44 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Employees and independent contractors are defined by law (federal and state) not by signing an agreement between you and your employer. It sounds like you are an employee. When you file your 2007 return, you should file as an employee and pay just your half of social security along with the income tax you owe (that will still add up to plenty.) The IRS will have a new form this year to make that easier.
In California, the EDD (Employment Development Department) is much more aggressive going after employers than the IRS. You should contact the equivalent agency in your state to see if they will help you get your employer to correctly treat you as an employee. From your description it sounds like they might want to also check your employer's compliance with wage and overtime laws.
2007-11-26 10:38:06 · answer #3 · answered by Knightly 2 · 2⤊ 0⤋
You do realize, right, that income taxes were still from your money? If the employer takes them out, you got less take home pay. Nothing prevented you from voluntarily sending in the same amount to the IRS.
The part that the SS-8 addresses is whether you owe 7.65% FICA (one half of the payroll taxes) or 15.3% SECA (both halves) on your income. If you made $10,000, the difference is roughly $765. Filing with the state labor board might get you back the overtime.
2007-11-26 14:30:29 · answer #4 · answered by Anonymous · 0⤊ 0⤋
he THINKS he is not liable. My friend was in a similar employment deal,,,ie the boss furnished all the tools,,,anyway,,,my friend incured an injury on the job sight.
The boss WAS liable to pay for his treatment. The judge said it was illegal of him to write these employees off as independent (due to the fact that all the materials and tools belonged to the employer), and the judge made him pay a bunch of backtaxes and the guy nearly had to go out of business.
2007-11-26 06:42:09 · answer #5 · answered by E S 3 · 2⤊ 0⤋
Omg! it sounds like he had you sign something like a contract for independent contractor. He does not have to withhold federal income tax if that is the case. Keep in mind that you do have to pay federal income tax on your wages as well as social security tax if you earned over $400 during the year. Sorry, I know thats bad news.
2007-11-26 04:32:40 · answer #6 · answered by Anonymous · 0⤊ 2⤋
When and If the IRS makes a decision about the SS8 in your favor, I would also talk to your states Labor board about the overtime he owes you.
2007-11-26 06:36:54 · answer #7 · answered by Charlie & Angie G 4 · 1⤊ 0⤋