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  • forman

    i started working for a company about a year ago i told them that i was an independent contractor,i file my taxes as an independent, the company would pay weekly as a sub because i am there doing work for them every week,will i recieve a 1099 or should they pay my taxes. they have payed me what i requested from them every week.
    Last edited by tank; 03-26-2007, 03:39 PM. Reason: left word out

  • #2
    1099 or employee, the federal and state income taxes are YOUR problem, not the company's.

    If you are an employee, you pay 7.65% of your wages for FICA and the company does the same.

    As an IC, you get to pay a tax equivalent to the employer and employee tax for FICA -- all out of your earnings.

    As an IC, if you are injured on the job, your injuries will have to be paid out of your pocket. The company has no obligation to pay, unless you sue and win in court.

    If the company lets you go, as an IC, you have no unemployment benefits. As an employee, you will, unless you were fired for misconduct.
    Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

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    • #3
      And, if it is discovered that you should NOT have been classified as an independent contractor, they would be liable for overtime pay and all other sorts of taxes, penalties, etc. for the misclassification.
      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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      • #4
        forman

        i do not recieve sick days or vacation pay,have my own tools,the company has a long going history of using subs,but i pend 90 percent of my time working for them,and will recieve a 1099,but your saying i may be an employee?

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        • #5
          The following article addresses the "employee or independant contractor" queston.

          http://payroll-taxes.com/articles/art2.html
          "Reality is that which, when you stop believing in it, doesn't go away".
          Philip K. **** (1928-1982)

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          • #6
            It isn't necessarily how much time you spend working for them, but rather how much they are directing your work and if you have the freedom to work for others as well. If you tell us what you do, we might be able to better advise you.
            I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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            • #7
              forman

              i do welding projects for the company,they give me the project and i take it from that point untill that job is done ,then they will give me another project,i also over see other subs doing work for that company ,but i do jobs for other companies also.thanks for the help in advance

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              • #8
                Since you are working more or less on your own with little to no direction from the company and with your own tools, then it sounds like you are correctly classified.
                I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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