Follow up to the jerk employer and paying no unemployment insurance!?

Question

Ok - this guy thinks he gets around the employer/employee relationship by writing "commission" in the memo of the check. There is a paper trail. Everyone who has worked for him is clearly an employee - he dictates every move and tells you when to do it (set hours). Very clearly he did this to avoid his obligations. The IRS has been callled and paperwork sent in. They asked "how has he gotten away with this for 25+ years?" Personally I think he is in HUGE trouble! What do you think? Writing "commission" does not make it so!

Answer 1

Even commission sales people are considered employees unless they meet very specific IRS guidelines, and setting hours blows that excuse.  Report him also to the state revenue agency and the states business regulation agency.  This guy is scum and needs to get caught.

Answer 2

True.  And calling someone a subcontractor doesn't make it true, either.  But people have ALWAYS thought they could opt out of laws like that!

The IRS is going to be much more upset than the local unemployment commissioner.  

Don't forget to report to your department of labor, as most likely this guy doesn't have workers comp, either - they'll shut him down.