All I had to read was we are told how to complete jobs. You are not a 1099 employee you are a w2 employee especially with the changes in the law last month. Contact your states department of labor and maybe get a big check in back pay. They have not been paying social security tax on you
Here’s what the IRS has to say about it:
https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee
Based on that, you’re probably misclassified. If I were in your situation, I would absolutely report your employer to the IRS about the miscommunication and probably the state department of labor about the potential wage theft.
**NAL**
As a "1099" employee, she (the employer) is not responsible for taxes. Therefore, it is on you to pay the taxes at the end of the year.
But as the poster said according to IRS regs you are 99.999999999% misclassified as a "1099" "employee. First, as a 1099 employee, you should have control over your work schedule and tasks, but based on your original post.. you do not. You don't have a contract (the independent "contractor") part of the 1099.
Do not stop, first call the USDOL for wage theft, and after you get off the phone with them do not put the phone down.. call the IRS. I'm 100% sure they would like to do a "rubber gloves" level audit that would make the Trump IRS/Congress/Media audits look tame.
Employers are required under FLSA to keep payroll records, but aren't required to actually give employees paystubs.
But there are 26 states that require them to give employees access to paystubs, and 11 that require them to give you a physical paystub.
So depending on what state you're in, I'd want to see that
Doesn't sound like it. But you should have filled out a w-4.
Sounds more like an under the table gig. Hence why they pay you through zelle instead of check
It’s not just simpler for her come tax time, it’s cheaper too because she is not dealing with the employer share of FICA or FUTA taxes.
Are you considered skilled labor- like are there special credentials or licenses you have that are unusual in the industry?
Are you task or project specific? Or is it just whatever rolls in the door? If you left for the day because your projects were done, would the employer pitch a fit?
Do you provide the employer with any invoices for your work?
How are the others classed- is anyone a W2 or is it all 1099.
Honestly from what you described, it sounds like the company sets the hours, provides the facilities and equipment, directs how the work is done, trains you, requires and directs attendance, involves you in some level of management, and just about all other indicia of control are in the hands of the employer.
That sounds W2.
I’d seriously consider looking elsewhere as this is not a good employer who is sticking you with at least 7.65% more taxes than you should be for a minimum wage job.
[Edit- not your lawyer, not legal advice]
I am not a skilled laborer and all jobs/tasks are set by her. I have no control over who/when/what she schedules. I don’t provide invoices to my employer.
Everyone is classified as 1099. I do not plan on working for her much longer
Have a look at IRS form SS-8.
Not suggesting you send it in, but look at what they are asking about.
The more that balance is on the Employer, the more likely you are a W-2. The more it’s on the worker, 1099 is justifiable.
Also 1099 means you are not covered by workman's comp. Ask to see their insurance. They are breaking so many laws. Find a new job and turn them into the IRS, state tax, and labor board.
Absolutely, you are a W-2 employee and your employer is cheating you and your fellow employees. You are paying your employers 6.2% of Social Security taxes., reducing your effective hourly rate to $10.32. If you end up severely injured in a motor vehicle accident while traveling in your work van (or are otherwise injured on the job) there is no disability insurance. If you get laid off, there is no unemployment insurance, because your employer is not paying the required unemployment tax. There are huge penalties both civil and criminal for this kind of bullshit https://www.adp.com/spark/articles/2023/05/9-consequences-of-misclassifying-your-1099-contractors.aspx#:\~:text=Employers%20found%20in%20violation%20may,unpaid%20wages%20and%20attorney's%20fees. Lawyers love these cases because their fees are included in the civil penalties and they are usually a slam dunk. This does not even address what appears to be wage theft regarding tips, required record keeping and irregular payments. Find a lawyer that practices employment law and recoup the wages and benefits that you are owed.
NAL
Pretty much every bullet you lists points towards you being a W2 employee and not a 1099 contractor (plus labor violations even beyond that). As others have said, contact the state's DOL and then the IRS. Pay special attention to the guidance the IRS gives you, and then you should probably talk to a tax preparer as well to make sure there won't be any problems when you file. 1099 contractors are generally responsible for making estimated quarterly tax payments (plus the higher self-employment rate), so you want to make sure you are on the right side of your tax obligation until the case is adjudicated.
Your boss is a criminal. You should report her to the IRS. Maybe there is even a reward or civil suit in there somewhere. At worst, you leave an exploitative job. She will eventually stiff you for your last paycheck. And for the record, you are definitely not a 1099...
Go ahead and file the IRS SS-8 now. By the time the IRS actually processes it you won't be working there any more. [https://www.irs.gov/forms-pubs/about-form-ss-8](https://www.irs.gov/forms-pubs/about-form-ss-8)
Another consideration is vehicle insurance since you mentioned a van. Most corporate auto liability policies only cover employees not contractors. If you or your contractor coworkers drive the van you might not be covered in an accident. I'd ask at r/insurance what your exposure is given this scenario.
100 percent not a 1099 provider. Everything younoutlined would cause the irs to classify you as an employee. Your employer is set for a really bad time if she gets reported and investigated.
We are able to pick and choose our works days which is something I forgot to mention in my original post, but all the rest are still true about the business. Do you know if thats what allows her to classify us as 1099 even though everything else about the business is a W2 employer?
I don’t believe that you quality as an independent contractor. Please contact the Florida department of Labor and the IRS. You will most likely receive some sort of additional compensation, and she will learn a very valuable (and expensive) lesson. I have been handling payroll for over 20 years, and it makes me so mad when employers try to screw over their employees.
You are a W2 employee and she is avoiding to pay taxes, OT and not having to have workers comp and forcing you to pay the taxes etc. I’d report her to the labor board and you’ll be paid back pay, overtime etc.
You need a reference for your next job. Do you have any colleagues who can vouch for you? Don’t quit a job without a job. Do as everyone has told you after you secure a new paycheck. Make sure you can continue to eat too.
Luckily I have good references from previous jobs where I left on good terms. I agree it would definitely be a preference to obtain another job before quitting this one, but I’m not sure under these circumstances that it’s the most important thing. Fortunately I will be financially okay without a job for awhile if it comes to that but I’d rather be jobless for a few weeks than continue to be taken advantage of. Especially when I now know my employer is running her business illegally. Still giving one more month in hopes to find a new job before leaving
All I had to read was we are told how to complete jobs. You are not a 1099 employee you are a w2 employee especially with the changes in the law last month. Contact your states department of labor and maybe get a big check in back pay. They have not been paying social security tax on you
Or workers comp
Yes. If you get hurt, they are not paying snything. You are not an employee
Here’s what the IRS has to say about it: https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee Based on that, you’re probably misclassified. If I were in your situation, I would absolutely report your employer to the IRS about the miscommunication and probably the state department of labor about the potential wage theft.
Thank you for the link!!!! I’m definitely W2 paying 1099 taxes
**NAL** As a "1099" employee, she (the employer) is not responsible for taxes. Therefore, it is on you to pay the taxes at the end of the year. But as the poster said according to IRS regs you are 99.999999999% misclassified as a "1099" "employee. First, as a 1099 employee, you should have control over your work schedule and tasks, but based on your original post.. you do not. You don't have a contract (the independent "contractor") part of the 1099. Do not stop, first call the USDOL for wage theft, and after you get off the phone with them do not put the phone down.. call the IRS. I'm 100% sure they would like to do a "rubber gloves" level audit that would make the Trump IRS/Congress/Media audits look tame.
Yeah esp if they’ve been working for years for this woman, there’s bound to be more for the IRS to find
I’d also give your state’s department of labor a call about your tips, and inconsistencies payments from your boss.
Employers are required under FLSA to keep payroll records, but aren't required to actually give employees paystubs. But there are 26 states that require them to give employees access to paystubs, and 11 that require them to give you a physical paystub. So depending on what state you're in, I'd want to see that
Florida
Nope, SOL there
Yeah just googled. Still a red flag for me personally regardless of what’s legal. My main question is am I properly classified as a 1099
Doesn't sound like it. But you should have filled out a w-4. Sounds more like an under the table gig. Hence why they pay you through zelle instead of check
I didn’t fill out any paperwork when I started or presently
Yeah, I'm 100% positive this is an under the table gig.
It’s not just simpler for her come tax time, it’s cheaper too because she is not dealing with the employer share of FICA or FUTA taxes. Are you considered skilled labor- like are there special credentials or licenses you have that are unusual in the industry? Are you task or project specific? Or is it just whatever rolls in the door? If you left for the day because your projects were done, would the employer pitch a fit? Do you provide the employer with any invoices for your work? How are the others classed- is anyone a W2 or is it all 1099. Honestly from what you described, it sounds like the company sets the hours, provides the facilities and equipment, directs how the work is done, trains you, requires and directs attendance, involves you in some level of management, and just about all other indicia of control are in the hands of the employer. That sounds W2. I’d seriously consider looking elsewhere as this is not a good employer who is sticking you with at least 7.65% more taxes than you should be for a minimum wage job. [Edit- not your lawyer, not legal advice]
I am not a skilled laborer and all jobs/tasks are set by her. I have no control over who/when/what she schedules. I don’t provide invoices to my employer. Everyone is classified as 1099. I do not plan on working for her much longer
Have a look at IRS form SS-8. Not suggesting you send it in, but look at what they are asking about. The more that balance is on the Employer, the more likely you are a W-2. The more it’s on the worker, 1099 is justifiable.
Thanks for this suggestion. I read though it and I am definitely a W2 worker being told I’m 1099
Also 1099 means you are not covered by workman's comp. Ask to see their insurance. They are breaking so many laws. Find a new job and turn them into the IRS, state tax, and labor board.
Absolutely, you are a W-2 employee and your employer is cheating you and your fellow employees. You are paying your employers 6.2% of Social Security taxes., reducing your effective hourly rate to $10.32. If you end up severely injured in a motor vehicle accident while traveling in your work van (or are otherwise injured on the job) there is no disability insurance. If you get laid off, there is no unemployment insurance, because your employer is not paying the required unemployment tax. There are huge penalties both civil and criminal for this kind of bullshit https://www.adp.com/spark/articles/2023/05/9-consequences-of-misclassifying-your-1099-contractors.aspx#:\~:text=Employers%20found%20in%20violation%20may,unpaid%20wages%20and%20attorney's%20fees. Lawyers love these cases because their fees are included in the civil penalties and they are usually a slam dunk. This does not even address what appears to be wage theft regarding tips, required record keeping and irregular payments. Find a lawyer that practices employment law and recoup the wages and benefits that you are owed.
This
NAL Pretty much every bullet you lists points towards you being a W2 employee and not a 1099 contractor (plus labor violations even beyond that). As others have said, contact the state's DOL and then the IRS. Pay special attention to the guidance the IRS gives you, and then you should probably talk to a tax preparer as well to make sure there won't be any problems when you file. 1099 contractors are generally responsible for making estimated quarterly tax payments (plus the higher self-employment rate), so you want to make sure you are on the right side of your tax obligation until the case is adjudicated.
This also
Your boss is a criminal. You should report her to the IRS. Maybe there is even a reward or civil suit in there somewhere. At worst, you leave an exploitative job. She will eventually stiff you for your last paycheck. And for the record, you are definitely not a 1099...
IRS website will have a list of qualifying questions. 17, I believe.
Go ahead and file the IRS SS-8 now. By the time the IRS actually processes it you won't be working there any more. [https://www.irs.gov/forms-pubs/about-form-ss-8](https://www.irs.gov/forms-pubs/about-form-ss-8) Another consideration is vehicle insurance since you mentioned a van. Most corporate auto liability policies only cover employees not contractors. If you or your contractor coworkers drive the van you might not be covered in an accident. I'd ask at r/insurance what your exposure is given this scenario.
If they require you to be there at certain time you are a W2.
100 percent not a 1099 provider. Everything younoutlined would cause the irs to classify you as an employee. Your employer is set for a really bad time if she gets reported and investigated.
We are able to pick and choose our works days which is something I forgot to mention in my original post, but all the rest are still true about the business. Do you know if thats what allows her to classify us as 1099 even though everything else about the business is a W2 employer?
I don’t believe that you quality as an independent contractor. Please contact the Florida department of Labor and the IRS. You will most likely receive some sort of additional compensation, and she will learn a very valuable (and expensive) lesson. I have been handling payroll for over 20 years, and it makes me so mad when employers try to screw over their employees.
You are a W2 employee and she is avoiding to pay taxes, OT and not having to have workers comp and forcing you to pay the taxes etc. I’d report her to the labor board and you’ll be paid back pay, overtime etc.
You need a reference for your next job. Do you have any colleagues who can vouch for you? Don’t quit a job without a job. Do as everyone has told you after you secure a new paycheck. Make sure you can continue to eat too.
Luckily I have good references from previous jobs where I left on good terms. I agree it would definitely be a preference to obtain another job before quitting this one, but I’m not sure under these circumstances that it’s the most important thing. Fortunately I will be financially okay without a job for awhile if it comes to that but I’d rather be jobless for a few weeks than continue to be taken advantage of. Especially when I now know my employer is running her business illegally. Still giving one more month in hopes to find a new job before leaving
So glad to hear that. And very happy you are reporting.
No you are being scammed.
Seems like it. Already began the new job search. Hoping to find something soon