I am hoping someone may have experience or be able to help me with this situation:
I have been helping as the director of a non-profit and have been working for almost a year. The board decided to treat this as contract labor (1099) and has been paying as such:
$10 an hour, payed once per month, based upon the hours that I report. I write the check to myself (from their account). I started doing this because the board was not responding to my questions about how I would get paid, so the president told me to just go for it.
I just realized that I may need to start being classified as an employee. There is tax issues.. etc. (self employment tax, federal witholdings, etc.). This also would date back to the previous directors before me, for many years they have been treating what I would think are employees as contractors.
Am I wrong to think that we have been taken advantage of(myself and previous directors)? I am going to have to pay self employment tax, as well as state gross receipts tax on the "contract labor".
The other thing is that I dont have a contract. I asked for one about a month or two into the job and the board never got back to me. I asked for stuff like, what happens if I am terminated or resign, when can I get performance evals, etc. It is kind of like the board does not want to do anything or be involved. But they also want me to go through them for any/all decisions and nothing will get done.
Would I be in any sort of legal situation if I decided to just quit working? Are they in any situation legally If I actually wanted to push anything?
I like the work we do and some of the board members, it is decent part time income on the side (other than the tax issue, I will see how that works out come time), but I am worried this could become a mess and I need to know what could happen If I want out.
Thanks in advance