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  1. #11
    Join Date
    Jun 2018
    Posts
    3

    Default Re: Steps to Take on Being Missclassified As a Ic

    I've been paying $400 a month in back tax payment plan for state taxes for 2 yrs now and paying them $500 quarterly tax for about a year.I almost have it paid up(with help of wife's income).I am currently working on a payment plan for the IRS I am about 5yrs behind.I was hoping the misclassification would bring down what I owe the IRS.

    I am looking to get out of this 1099 job this summer and into a w-2 job.My drop in gross income,tax rate and my inability to manage taxes is killing me.

  2. #12
    Join Date
    Jan 2015
    Posts
    1,131

    Default Re: Steps to Take on Being Missclassified As a Ic

    Quote Quoting RayER
    View Post
    I've been paying $400 a month in back tax payment plan for state taxes for 2 yrs now and paying them $500 quarterly tax for about a year.I almost have it paid up(with help of wife's income).I am currently working on a payment plan for the IRS I am about 5yrs behind.I was hoping the misclassification would bring down what I owe the IRS.

    I am looking to get out of this 1099 job this summer and into a w-2 job.My drop in gross income,tax rate and my inability to manage taxes is killing me.
    I regret to say that I strongly suspect the best thing for you to do is just quit working for this man and get another job with some legitimacy as soon as possible. I'm afraid that's about what a labor lawyer is going to tell you. There's no big lawsuit or violation he's made that you're going to get any relief from. Yeah, he's a cheat and a crook, and he has been aided in this crookedness by you, who was willing to do what you've done for the last 13 years, even when you got in tax trouble from doing it.

    Yes, you can complain to the state department of labor. You can speak to the wage and hour division. And the unemployment system will try to get him to pay 13 years worth of back unemployment taxes on you, and probably the secretary too. Or he may actually be exempt from unemployment insurance.

    He will very likely "stop using your services" in other words, since as you know, you were for all intents and purposes an employee, he'll fire you the first time you start complaining about not being classified correctly, much less when he gets wind his contractor has filed a complaint. That's why you need to speak to a labor attorney in the area. Doubt if you have much protection but better to ask them. How great would it be to work for him after this is over? You may be able to get this year corrected for tax purposes, but he'll likely not be required to keep you around and put you on his payroll as a regular employee with benefits and take outs.

  3. #13
    Join Date
    Oct 2006
    Posts
    15,183

    Default Re: Steps to Take on Being Missclassified As a Ic

    Quote Quoting comment/ator
    View Post
    I regret to say that I strongly suspect the best thing for you to do is just quit working for this man and get another job with some legitimacy as soon as possible. I'm afraid that's about what a labor lawyer is going to tell you. There's no big lawsuit or violation he's made that you're going to get any relief from. Yeah, he's a cheat and a crook, and he has been aided in this crookedness by you, who was willing to do what you've done for the last 13 years, even when you got in tax trouble from doing it.

    Yes, you can complain to the state department of labor. You can speak to the wage and hour division. And the unemployment system will try to get him to pay 13 years worth of back unemployment taxes on you, and probably the secretary too. Or he may actually be exempt from unemployment insurance.

    He will very likely "stop using your services" in other words, since as you know, you were for all intents and purposes an employee, he'll fire you the first time you start complaining about not being classified correctly, much less when he gets wind his contractor has filed a complaint. That's why you need to speak to a labor attorney in the area. Doubt if you have much protection but better to ask them. How great would it be to work for him after this is over? You may be able to get this year corrected for tax purposes, but he'll likely not be required to keep you around and put you on his payroll as a regular employee with benefits and take outs.
    I am sorry, but you are wrong that he would not get any relief. If he files the SS-8 with the IRS and form 8919 with his tax returns (amending to include that if he has not done so for the last 3 years), then he will get some relief on the taxes he owes.


    I agree that one way or another he is likely to lose this job, but it sounds like the job was going away anyway.

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