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Miscategorized subcontracted employee? Ohio

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  • Miscategorized subcontracted employee? Ohio

    My wife works for the local Animal Protective League. In mid-2008, the APL worked out an arrangement with the local County Commissioners to have the County provide the funds necessary to support my wife's position. The County now pays 100% of my wife's salary. They pay her directly, as a subcontracted employee / vendor. This causes the IRS to consider her self employed and puts us on the hook for all of her tax liability. Since my wife was not the individual who contracted with the County is this a fair labor practice, or should the APL be responsible for the employer's portion of my wife's tax contributions? The APL has balked at this suggestion and would like a formal, written "proposal" from us regarding the resolution we are seeking to the matter. I am looking for opinions and perhaps a starting point for what section of labor law to cite in our proposal. Thank you.

  • #2
    Who issues the check?
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    • #3
      The APL had been responsible for issuing the checks until they made the new arrangements. Since July 2008, the checks have come directly from the County and are issued in my wife's name.

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      • #4
        To complicte matters: The APL still pays (i.e., issues check for) any overtime hours my wife works. The County issues monthly checks for "Humane Officer Services", but any hours above and beyond the 40 hour work week standard causes the APL itself to issue an overtime check. Taxes are taken from the overtime checks.

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        • #5
          That does complicate matters, but if the county is issuing the checks for the regular salary, then they would have to justify IC status if she were to file a complaint.
          http://www.irs.gov/charities/article...128602,00.html
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          • #6
            Thanks for the link. I quickly read through the info at the IRS website.

            The issue that I have is that NO ONE considers my wife to be employed by the County and/or self-employed (except the IRS). She reports to work at the APL's physical plant, has an office there, punches their time clock, and has a boss that she reports to at the APL. The entire payment arrangement was made between the APL and the County, but for some reason, the County has chosen to pay my wife directly, rather than write a check to the APL, who would then pay their employee (in this case, my wife). All of these arrangements have been made without allowing my wife any input into the decision making process.

            So are you indicating that, in your opinion, the APL should not be responsible for the employer's percentage of my wife's tax contributions, but instead these monies should be coming from the County itself?

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            • #7
              If that's who's paying her, yes.

              I will say, though, that this is not a common situation. When a government funds a position in a related agency, the employer is normally the agency itself, and the agency bills the government for the agreed-upon amount.

              The fact that the APL is paying her overtime and deducting taxes indicates that this is a dual employment relationship and she can't be an IC for her regular salary and an employee for overtime. Doesn't make sense.
              I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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              • #8
                I agree. The whole situation would be so much simpler if the County would simply pay the APL the agreed upon amount. The APL could then use the funds provided to offset the costs of my wife's salary.

                It seems to me as though neither organization involved in establishing this arrangement is interested in being considered to be my wife's employer.

                The APL has requested that my wife draw up a "proposal" stating how she would like to have this matter resolved. She is to present her proposal to the APL's HR Board on Monday.

                At this point, I am of the opinion that we will simply argue that one of the two agencies involved is, in fact, my wife's employer and that if one of the agencies does not begin making the appropriate tax contributions that we will be forced to retain counsel to settle the matter.

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                • #9
                  I think that's a good an idea as any.

                  Good luck.
                  I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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