Fema Employment
Am I considered an independent contractor or an employee?
Ok I have a new question for ya'll. I am considering the idea of hiring a attorney on a problem that I am having. The problem is that my boss calls us independent contractors, and pays non of our taxes. Instead we are suppossed to pay our taxes at the end of they year with a 1099 form and we dont get or use a w-2. The problem is that I think I am a employee and not an IC. He tells me when to be a work, where to do my work, how to do my work, and when to stop working. He provided a traing class for me and the others instructing us on how to do the job, the way he wanted it done. Now I thought that an IC gets to set their own schedule, doesnt work when they dont want to, and they are doing the job the way that they want to. He pays us with a buisness check, like cash, pays none of our taxes, such as social security, or federal, and he made us sign only one document at the time of hire. That was a document waiving our right to workmans comp. What do you all think? IC or employee in AZ?
Public Comments
- IC all the way. Unless your contract/application was processed through the HR Dept. of the company and they "Welcomed" you to the company as a "Direct" hire then you are a Contract (1099) employee. The only reason you went through training and instructional programs was to familiarize you with their goals and wants. What would you do if it were your company??? When your boss did not withold any taxes throughout the year it should have been an awakening. You should have witheld your own taxes. Simply because you were negligent...don't be stupid. You got bucks and need to pay some sort of bucks for taxes. Unfortunately I fell into this mess years ago. I got smart and made a lot of money being a 1099er. Learn the rules and play the game .... take them to the cleaners. Good luck! And I really mean this!!!
- IC. You are responsible for your taxes. As an IC you are not only responsible for your FICA and Med-FICA taxes you're responsible for the EMPLOYER side of that as well. This means that the 6.2% FICA is actually 12.4% and the 1.45% Med-FICA is really 2.9%. [one of the businesses that i own is a payroll processing company]. The only good news in this is that you're able to deduct a lot of things on your Schedule C with your tax return. The mileage deductions this year were increased to 40.5 [and for some months 48.5] cents per mile. Anything that you can think of that makes you qualified to do this job are also deductible expenses. You may need to make an estimated tax payment for your Federal tax return by January 15th. Uncle Silly loves to get his money as soon possible.
