Should I Be Paid As W2 or 1099

[Tomw]

Accidentally posted twice.

[adjusterjack]

PayrollGuy makes a good point.

I am paid once per month, 60 days after I perform my work. The money is paid from Factory 123 to company ABCDEF, then a few days later Company ABCDEF pays me about 30-55% of what they collect.

What is Company ABCDEF? What does it do? Why is it an apparent middleman between you and Factory 123?

Meantime, watch this IRS presentation. The first 7:40 minutes is a rehash of what you've already read on the IRS website but at 7:40 the presenter starts going into more comprehensive areas.

https://www.irsvideos.gov/ProperWork.../frame-flv.htm

[Tomw]

PayrollGuy makes a good point.

What is Company ABCDEF? What does it do? Why is it an apparent middleman between you and Factory 123?

]

Company ABC developed this specific method for massage.
Company ABC eventually got this method approved by OSHA so they could offer massage on the property of these factories to help their employees prevent injury.
Originally Company ABC was my employer but a few years after I began, they split to a sister company of ABCDEF specifically to handle the factories while Company ABC continues to host classes for this method throughout the year.
The company is known entirely for this method.
They are the middle man because they have data compiled from factories across the nation showing how their method prevents some injures and factories who like that data will have a contract with Company ABCDEF and then company ABCDEF offers the work to the closest person qualified to perform this massage method.

Of course I could open a Berger place but that big McD sign helps. That might be a fair comparison here. I could offer something similar without this company and without this method but their method has helped other places so it validates my work before the factory agrees, and the software they require we all use helps compile data while keeping names anonymous and is offered both to Factory 123 to show success and compiled nationally to show the success to future companies

[PayrolGuy]

I think since you are providing the primary service that the employer sells you should be a W2 employee. FIle for unemployment and I'd be willing to bet the state decides that way as well.

[adjusterjack]

I've been leaning toward employee also and the company details confirm it. Your employer controls what you do and how you do it. That's a big part of it. That you have been working for them for 7 years and they employ many masseurs just like you is also part of the criteria. You're paid by the hour and had no choice but to accept a 20% reduction in pay. That also says employee. So does the non-compete.

This appears to be another cheater that uses the independent contractor dodge to avoid payroll taxes and workers comp insurance.

[cbg]

It's very easy to have employees. It's not so easy to have IC's.

The smart employer, when unsure of which it should be, will always assume employee.

[Tomw]

It's very easy to have employees. It's not so easy to have IC's.

The smart employer, when unsure of which it should be, will always assume employee.

I've been leaning toward employee also and the company details confirm it. Your employer controls what you do and how you do it. That's a big part of it. That you have been working for them for 7 years and they employ many masseurs just like you is also part of the criteria. You're paid by the hour and had no choice but to accept a 20% reduction in pay. That also says employee. So does the non-compete.

This appears to be another cheater that uses the independent contractor dodge to avoid payroll taxes and workers comp insurance.

I think since you are providing the primary service that the employer sells you should be a W2 employee. FIle for unemployment and I'd be willing to bet the state decides that way as well.

Thank you all for your help. The unanimity is encouraging and I thank everyone for taking time to ask questions and arrive at the conclusion.