Irritated and have a question about employers?

Question

Sorry for ranting, but it's obvious this employer doesn't want to pay taxes as him being an employee....the guys slick. Anyway, my husband is looking for another job. After all this my questions is, Can an employer legally hire someone who works 5 days/40 hours a week and 1099 him as an independent contractor? Thanks for listening and your input!

Answer 1

This employer is committing tax fraud.  There are very few hard-and-fast rules for distinguishing independent contractors from employees.  But one pretty clear rule is that if the employer/contractor is paying by the hour and requiring the person to be on premises for a certain number of hours per day, week or month, the person is an employee.  The employer should be liable for its portion of employment taxes and should be requiring husband to fill out a W-4 and going through all the usual steps for taxation of employees.  

The employer is also trying to rip off your husband by refusing to pay the off-the-table cash portion that was agreed to.  If they haven't paid it yet, chances are pretty good they're not going to.  

Your husband needs to do at least two things (1)  Get a different job ASAP; and (2) report these people to the IRS.  

He should probably also go to the TX state employment commission to find out about reporting the employer regarding the unpaid cash.  He may never get that money.  But if he's to have any chance, he needs leverage.  That will mean getting the state on his side.

Answer 2

This really sucks, I'm sorry for you and your family.  I don't have any experience with construction in general, but when someone is hired, there should  be a written contract signed by both employer and employee, or nothing is enforceable by law or labor union.  If the employer agreed to pay him off the books, they should be liable, but if there is nothing in writing to prove it, then you are probably screwed.  He should stop work immediately (if it is financially possible for you) and look for another job.

Answer 3

Well, you knew from the start that the guy was a sleaze, as soon as he proposed that you evade taxes.  Why are you surprised now when he is trying to cheat YOU too.

While ic vs employee can depend on what the work is, generally if the company controls the hours and the place of work, you are NOT an independent contractor.

Your husband's best bet is to find another job, then file a form SS-8 with the IRS asking for a determination of his status as ic or employee for his current job