Can you legally pay a regular employee as an independent contractor? 1099 question?

Question

I am a regular employee that pays all of my taxes...ALL of 'em.
I have a boss.
He finds the jobs.
He bids the jobs.
He makes the calls on how to build stuff (I am a marine carpenter).
He pays me, and has done so steadily for two years.
I have to have liability insurance.
If I get injured, I think I'm screwed...I have no personal insurance.
How good of a deal is he getting by paying me as an independent contractor?
And again, is this legal?

Answer 1

He can indeed pay you as an independent contract under the circumstances you describe. He is getting a GREAT deal because he doesn't have to pay ANYTHING for you - like state mandated worker's compensation, offering other employee benefits that the state may require such as insurance, etc. I suggest you look for a different job. You are getting screwed.

Answer 2

With the facts you have provided, it sounds like you do work for a Contractor and are paid as an Independent Contractor. Although you might not be happy with the situation, there isn't anything illegal about it.

It is completely to the advantage of this individual to have you work as an independent contractor. If you are in his employ there are a whole host of laws that he has to comply with including but not limited to paying social security, workers compensation and unemployment taxes.

As you mentioned, since he isn't paying employee-related taxes, so you aren't eligible for tax-based programs such as workers comp. if you are injured on the job.

However, you a few options:

Tell this man that you want "employee" status. He will probably tell you that in order to do that he would have to pay you less. You could keep your status as an independent contractor at your current rate of pay but purchase individual disability insurance so you will receive finanical benefits in the event of an illness or job or non-job related injury;

Or,

Obtain employment with a company that provides full benefits.

Answer 3

In your case, yes it is legal to pay construction sub contractors as independent contractors.

Thats how most Construction contractors work, they have a list of independent contractors, who they use for various jobs as they come up.

Answer 4

it is illegal to treat a formal employee as an independent contractor and sign a contract with him.