I was hired in May and worked all summer for an employer who wrote a handwritten check for me for the hours I worked at an hourly rate of pay. The employer determined what hours I would work, and what I would do each day, and my daily work was subject to evaluation and criticism. I used the employer's equipment and materials, and did not work at home, although I did use a headset that I brought in, and I staffed a booth at a convention for this same employer at a convention site.

In September, I discovered that the employer had considered me to be a "contractor" and did not start taking tax out of my pay until September. I am panicked! I didn't realize I was supposed to be taking tax out of my paychecks! There was no contract. I filled out an I-9 and tax withholding forms the day I started work early in 2006. I didn't worry about the witholding because I have worked for other employers who handwrote paychecks (but they still kept track of witholding...) There has been no change in my duties, my work area, my use of office equipment and supplies. In any case, I only make about $200/wk gross, and I live very hand to mouth. I am losing sleep wondering what my income tax will look like this year.

What should I do? I checked with the accounting department and they reported my SS# to the state as a contractor and plan to give me a statement of what they paid me "as a contractor" but I don't think it's fair that I should have to pay a higher rate of taxes on that money when I didn't agree to be a contarctor. I was told that the employer handles all new hires that way to save money, so I'm not the only person who has faced this problem at my work. My coworker said "just shut up and deal, you are lucky to even have a job." This just seems wrong and I feel sick about it. I would have quit if I would have known.

It's a very small company, BTW, my supervisor is the "HR dept" and doesn't seem to think anything is wrong with hiring people that way.

This link explains the differences between "employee" and "independent contractor": http://www.dol.gov/esa/regs/compliance/whd/whdfs13.htm.

There are many reasons that employers opt to class workers at "independent contractors". (1) The employer is not responsible to withhold taxes (including employer portion of taxes). (2) The employer is not responsible to cover under worker's comp policy. The contractor is required to hold his own insurance. (3) The employer is not obligated to offer benefits to the contractors. (4) The labor laws generally do not apply to independent contractors.

I am not saying that your classification is correct or not. Based on your brief post, my best guess is that you probably should have been classified as an employee.

You mention completing an I-9 at hire. This is a standard form completed for employees at hire. The purpose is to confirm your eligibility to work in the US. I did want to point out that contractors most likely were required to complete a W-9. This is not the same as the I-9. Since the form ids are similar, I'm not 100% certain which one you completed.

I'd suggest contacting the IRS about your tax issue. It's my understanding that contractors should be filing "estimated" quarterly returns. An IRS rep should be able to explain if this requirement applies to this matter.

No, I was never asked to fill out a W-9 (I keep copies of everything they ask me to fill out.) I filled out an I-9 and a W-4.

I've never had to contact the IRS before. How is the most appropriate way to contact them for this kind of concern?

I agree there web-site is not the most user-friendly. Here is the link: www.irs.gov/ (http://www.irs.gov/). You should be able to locate their telephone number there. They have reps available during business hours to answer questions.