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Abuse of 1099s

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Abuse of 1099s

Post by americatheneedy on Thu Dec 01, 2011 4:35 pm

I now have woefully inadequate, pathetically paying part-time job. Maybe 8-10 hours a week. On top of the pay of $7 which is below minimum wage, I have to pay my own taxes as there is nothing being taken out. Keep in mind that I am an employee in every sense of the word, nothing independent about this job, but employers are now calling people "independent contractors" so they can bypass ALL labor laws. So I have to pay My an the employers share of all payroll taxes. Do I have any choice?? If you are on this website you know I don't and just hope it turns into more hours. What are you opinions on this abuse of "independent contractor status?" And WHY isn't anyone doing anything to let all these employers know this will not be tolerated??

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Re: Abuse of 1099s

Post by Lacey on Thu Dec 01, 2011 5:10 pm

@americathe needy

Please report them to the IRS, or the Labor Board.

Me, I prefer to work on a 1099 basis

1) You will not owe any taxes Smile

2) you get to claim mileage, to & from work!!
not sure of the rate this year, but usually about .52 a mile = 2 miles driven is over a buck exempt from tax status.

But you will not owe any taxes; & if you knew how to do your own taxes (or use tax act.com, will step you thru for $16!!), you actually will get a refund.

Wish I had your job, I hold out for those 1099 jobs; have two part time ones rite now = but need another desperately!

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Re: Abuse of 1099s

Post by lendmeflight2 on Thu Dec 01, 2011 5:16 pm

I actually have experience with a situation like this. I was offered a very part time job working on a 1099. I refused to work under those conditions because I wasn't a 99er yet. I am not sure what I would do now. Basically you will have to pay both the employee and employer shares of social security and medicare plus self employment tax plus all of your state and federal taxes at the end of the year.

If you aren't working a lot you may actually owe more in taxes than you made. There are very specific things things that the IRS uses to define an independent contractor. If your employer supplies your materials, takes most of the risk of loss, and dictates when you work, you are an employee.

Here is an online reference.

http://www.legalzoom.com/everyday-law/workplace/employee-vs-independent-contractor-differences


You can call the IRS when you are trying to file your taxes and act like you are having trouble. You probably will have to anyway because it's a complicated process when you are self employed. They will probably ask you enough questions to catch that you are actually an employee. Your employer will get fined, be more scrutinized about his 1099, and probably audited. If he has a lot of employees I doubt he will know it was you. I urge you to get out of this situation as soon as you can. It cannot go well for you.

Basically your will pay all the employer taxes and your employer will use your labor as a tax deduction because he will say he couldn't get enough people to work for him so he had to contract someone to do it. He will pay less tax and you will pay his share.

Doesn't sound right does it? That's because it's not.

The reason these things happen is because we are all so desperate that we will accept the work. Factory work in this country was dangerous in the 1900's and we wonder why people did it. It's because they had no choice before the unions were formed.

I hope this helps and if I can be of service let me know.

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Re: Abuse of 1099s

Post by Jobless_in_Ma on Thu Dec 01, 2011 7:20 pm

I also accepted a low paying 1099 job as 99erville hit. There are a few of us on this status. Speaking with a fellow 1099 (what's with 99 being used so much) he also says there are many exemptions etc. I guess I'll know better when I file my taxes this year.

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Re: Abuse of 1099s

Post by TR11005 on Thu Dec 01, 2011 7:54 pm

Report them to your State Department of Labor. They are not paying taxes on Unemployment Insurance. The employer always pays that even though we actually earn it. Even though it is part time. In Ohio all you have to work is 8 hours a week to count toward your weeks for your calendar year.

If you punch a time card, they are sunk!

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Re: Abuse of 1099s

Post by lendmeflight2 on Thu Dec 01, 2011 8:06 pm

America isn't punching a time card though. They are paying her less than minimum wage in cash (i bet) and selling it to her as not having to pay taxes but she will at the end of the year. Maybe she will make so little it doesn't count.

They are just preying on our desperation.

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Re: Abuse of 1099s

Post by TR11005 on Thu Dec 01, 2011 9:18 pm

America will have to file for taxes due to collecting Unemployment Benefits. Social Security will want their tax with your 1099 or W-2 from working part time. If it is less then $600, in a year it could escape any tax. The employer has to file a 1099 form.

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Re: Abuse of 1099s

Post by elvis44102 on Thu Dec 01, 2011 10:52 pm

there are specific rules governing this...if your employer has any say so what so ever as to your daily activity you are not a "contractor"

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Re: Abuse of 1099s

Post by americatheneedy on Fri Dec 02, 2011 9:04 am

Oh I Know I'm an employee. I am micromanaged and no where near an independent contractor. But I needed the job so bad that I have to put up with it. I just can't believe that employers are so brazen these days. I can't believe that I have to put up with this because of the job situation in this country. I guess I just wanted to vent about the nerve of this guy. Oh and believe me this guy is a millionaire.

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Re: Abuse of 1099s

Post by Jobless_in_Ma on Fri Dec 02, 2011 9:32 am

americatheneedy wrote:Oh I Know I'm an employee. I am micromanaged and no where near an independent contractor. But I needed the job so bad that I have to put up with it. I just can't believe that employers are so brazen these days. I can't believe that I have to put up with this because of the job situation in this country. I guess I just wanted to vent about the nerve of this guy. Oh and believe me this guy is a millionaire.
Same exact reason I accepted this position. I also punch a clock. On my pay stub though my hrs worked are not listed, only my gross pay. Hmmmm Suspect

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Re: Abuse of 1099s

Post by Guest on Fri Dec 02, 2011 6:29 pm

Jobless_in_Ma wrote:I also accepted a low paying 1099 job as 99erville hit. There are a few of us on this status. Speaking with a fellow 1099 (what's with 99 being used so much) he also says there are many exemptions etc. I guess I'll know better when I file my taxes this year.
I believe you are supposed to file quarterly when you work on a 1099 basis, just as employers file quarterly payroll tax reports. Better look into this quick - penalties and interest add up fast!

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Re: Abuse of 1099s

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