PDA

View Full Version : employee vs. 1099


JerryW
03-28-2006, 07:36 PM
My son at 21 was employed for a start up business at the beginning of 2005 he worked full time, was paid hourly, and by all accounts meets the defintion of an employee in everything i've read. His employee told him to make sure he withheld taxes but he didn't. Now with the tax return done he owes $5,000.00 in taxes and can't afford to pay them. is there anything more to the classification of employee vs. indepent contractor; besides the criteria on the federal gov. sites? Can he make his employer pay the taxes for misclassification? Is there different laws dependent on the type of corporation, the number of "employees," or the profit/loss of the company?

Pattymd
03-29-2006, 05:14 AM
There are not different laws for different types of employers. Your son needs to contact the state Dept. of Labor and the IRS. Also, a good tax preparer and, depending upon the advice he gets from the DOL and the IRS, possibly an attorney. And he needs to find a job where the employer complies with the law. This guy is ignorant at best, and a crook at worst.

xpres413
03-30-2006, 04:43 PM
If You Live In The State Fof Illinois You Can Contact Your Elected Officials.there Is A Bill On The House Floor Addressing This Issue.the Misuse Of The 1099 Is Bad For All Of Us.a Minimum Amount Of Taxes Are Ever Collected And A Lot Of People Like Your Son Are Taken Advantage Of. Your Son May Be Able To Prove To The Irs That He Was Misclasified As A 1099-sub Contractor. If He Can Your Son May Be Able To Go After His Employer. It All Depends On What The Employmentagreement Was.

Pattymd
03-31-2006, 04:34 AM
Actually, the employee cannot "go after" the employer, but every tax jurisdiction that has laws that he was in violation of can.

Oh, and BTW, that capitalizing of every word makes your post very hard to read; is there something you can do to eliminate that?

Complete Labor Law Poster for $24.95
from www.LaborLawCenter.com, includes
State, Federal, & OSHA posting requirements