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  1. #1
    Join Date
    Jul 2017
    Posts
    2

    Default How to Figure Out if You're Misclassified as an Independent Contractor

    My question involves independent contractors in the state of: Arizona.

    I've been working for a small business for about 6 months now, we receive no benefits or workers compensation, and are paid bi-weekly. No taxes are taken out. I work between 30-40 hours a week. Is it not illegal to be a 1099 worker and a part-time worker for the same company?

    In quotes below is the AD I responded to and was given a handbook upon being hired.

    "Auction Listing and Setup person PART TIME 4-5 Days a week, 25-40 hours.
    - Must be willing/able to lot, picture, and describe 500+ items per week
    - digital photo / picture experience
    - Listing Items online - computer and internet
    - Auction and Antique experience helpful
    - Show up on time and follow directions
    - Report progress to management

    - Willingness to go above and beyond to get results
    - Organize items for auction
    - Ability to list move 30lbs
    - more tasks as needed
    Must be willing to fill in as needed to cover other positions and be cross trained for other departments.
    -This is a PT 1099 contract job - most of the time you will be looking at about 25-40 hours a week - you must be OK with this - If not please do not waste your time or mine. If you are not willing to do what it takes to succeed please DO NOT apply. We are looking for someone who is willing to grow as we grow - not someone between jobs - if this is you - please apply."

    Furthermore;
    There are set times for work (5 days a week, Monday, Tuesday and Wednesday 9:00 am - 3:00 pm, Friday and Saturday 8:00 am - 3:00 pm)
    We are not allowed to work unless it is at the scheduled time.
    we have to call our "manager" at work if we are going to be late or not able to come in.
    We have 2 "teams" of workers that do different things depending on the day. (I am a leader on one of the teams) We have "titles" for our positions.
    We have to be at meetings
    He buys the equipment we use.
    We receive training
    We can only work at his business.

    I don't understand how I can be considered a 1099 worker. Any thoughts or input is greatly appreciated! Thank you!

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,106

    Default Re: What Type of Employment is This It Says Its a Part-Time 1099 Contract Job

    https://www.irs.gov/businesses/small...ed-or-employee

    See if that helps. Few if any of the factors you have listed are conclusively one or the other; it is the preponderance of evidence that counts.

  3. #3
    Join Date
    Jul 2017
    Posts
    2

    Default Re: What Type of Employment is This It Says Its a Part-Time 1099 Contract Job

    Quote Quoting cbg
    View Post
    https://www.irs.gov/businesses/small...ed-or-employee

    See if that helps. Few if any of the factors you have listed are conclusively one or the other; it is the preponderance of evidence that counts.
    Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job? Completely! We have a set work schedule, we are told daily how to do our jobs!
    Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.) The owner provides all of the merchandise and cameras/computers/warehouse to work.
    Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business? The written contract contradicts itself quite a few times, I never received a copy, he had all of us sign basically a glorified handbook/training manual 2 weeks after I was working there. Scheduled days of work, so work is always continued.

  4. #4
    Join Date
    Mar 2013
    Posts
    17,231

    Default Re: What Type of Employment is This It Says Its a Part-Time 1099 Contract Job

    There is a way to get the IRS to officially determine if you are an employee or independent contractor:

    https://www.irs.gov/uac/about-form-ss8

    Read the instructions and submit the form.

  5. #5
    Join Date
    Oct 2006
    Posts
    15,679

    Default Re: What Type of Employment is This It Says Its a Part-Time 1099 Contract Job

    Quote Quoting adjusterjack
    View Post
    There is a way to get the IRS to officially determine if you are an employee or independent contractor:

    https://www.irs.gov/uac/about-form-ss8

    Read the instructions and submit the form.
    Yes, that is what should be done.

  6. #6
    Join Date
    Nov 2013
    Posts
    6,472

    Default Re: What Type of Employment is This It Says Its a Part-Time 1099 Contract Job

    And blow the dust off your resume because you will be looking for a new job the minute the company finds out. So be warned.

  7. #7
    Join Date
    Oct 2006
    Posts
    15,679

    Default Re: What Type of Employment is This It Says Its a Part-Time 1099 Contract Job

    Quote Quoting budwad
    View Post
    And blow the dust off your resume because you will be looking for a new job the minute the company finds out. So be warned.
    That would be a whistleblower situation. I am certain that they would try to find some way to get rid of the employee, but it would not be immediate.

  8. #8
    Join Date
    Nov 2013
    Posts
    6,472

    Default Re: What Type of Employment is This It Says Its a Part-Time 1099 Contract Job

    I don't think the Arizona Employment Protection Act (AEPA) protects the employee from reporting to the IRS that the employer may be misclassifying independent contractors. It protects them against reporting violations of State law. And since Arizona is an at-will state .....well gone the day they find out.

    Whistleblower Protection: An employee may not be discharged in retaliation for disclosing that he has information (or a reasonable belief) that the employer has violated, is violating, or will violate an Arizona statute or constitutional provision. To be protected, this disclosure must be made in a reasonable manner. Also, this disclosure is protected only if made either to the employer (or to a representative of the employer who the employee reasonably believes has the authority to take action) or to a public entity such as a state agency. Notably, disclosures made to media outlets are not protected by the statute. CITE: Ariz. Rev. Stat. 23-1501(3)(c)(ii).
    http://www.azleg.gov/ars/23/01501.htm

    The Federal act only protects federal workers.

    The Whistleblower Protection Act of 1989, Pub.L. 101-12 as amended, is a United States federal law that protects federal whistleblowers who work for the government and report agency misconduct.

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