what to do when your employer illegally treats you as a contractor

Ask A Manager

A reader writes: My question relates to being a 1099 contractor for a consulting firm. I was under the impression that I would be working with the rights and privileges of an independent contractor. As an independent contractor, can they require this of me? In looking at the IRS website, I was under the impression if they control when/where/how I work, I am no longer a contractor but an employee.

employee clique is causing problems, employer will pay me more if I work as a contractor, and more

Ask a Manager

Employer will pay me more if I work as a contractor. The employer responded that the salaries were not negotiable but that if I was willing to waive my benefits, they would have some wiggle room. I asked him to expand upon this, and he said that if I wanted to waive all benefits, including leave, and become a 1099 contractor, they could meet $65k. I’m a bit upset because my current employer is wonderful and has a great benefits package.

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10 Surprising Statistics About the Contingent Worker and Your Contract Workforce

Workology

My work has placed me at an interesting intersection where I am working and consulting in the HR and recruiting industries while also being an independant contractor and member of the contingent workforce. The independent workforce is called a lot of different things: freelancer, contract worker, project based workforce, 1099 employee, contingent worker, on-demand workforce and even the extended workforce.

Business Owners: Don't Get Tripped Up By Misclassification

Water Cooler Wisdom

  Fortunately, staffing, recruiting and search firm  Wunderland  has provided these tips for accurately telling the difference between a full-time employee and a contractor. Individual is not eligible for benefits. Individual is eligible for benefits. According to Wunderland, organizations sometimes think that classifying a full-time employee as a contractor saves them time and eliminates the need to pay taxes and benefits

2015 57

Going Solo—Five Tips for Beginning Freelancers

Resume Bear

Whether you’re a business consultant, a contractor, a writer, or a photographer, deciding to branch out on your own is a big step. Managing your own paycheck, expenses, overhead, taxes, and benefits can be overwhelming, but here are five steps to lower your concerns so you can focus on providing your customer the best you have to offer. So, you’re going freelance?

Seven Short Q & A’s on Saturday

Sklover Working Wisdom

Question 1: What can an independent contractor in North Carolina do to collect commissions he is owed? I worked as a 1099 independent contractor for a company that was bought out. Doug, an independent contractor in North Carolina, as in almost all states, is considered an independent business-person. You might also benefit from using our Model Letter entitled “Response to Receiving a PIP.” Unemployment Benefits – The 12 Basics to Know” just click here.

2011 109

updates: the invasive client, the missing chocolate egg, and more

Ask a Manager

She agreed to be a 1099 worker and started working with the nonprofit quickly after that as a trainer for those people undertaking the IT training that she had already completed. The boss was a government person, but the sprayer and I were both contractors, though from different companies.

2020 32

think you want to work for yourself? here’s what you should consider.

Ask a Manager

There can be huge perks to being a full-time independent contractor: You set your own schedule. However, before joining the land of the 1099 employees (1099 = the tax form you’ll be getting instead of a W2), make sure you’ve thought through the following five changes that will be coming your way, so you don’t get caught off guard or under prepared. As an independent contractor, you’ll be responsible for paying both halves – as well as a self-employment tax!

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Got a Phone And a Plethora of Patience?

Telecommuting Journal

To learn more about the difference between an employee and a 1099 contractor, refer again to Be Careful, Is it Really Employment. Their careers section also notes why it’s better to be an employee (as opposed to an independent contractor). They offer paid training, an hourly compensation, and benefits, noting their requirements here. It appears that they have both employment opportunities and independent contractor opportunities.

2008 100

Got a Phone And a Plethora of Patience?

Telecommuting Journal

To learn more about the difference between an employee and a 1099 contractor, refer again to Be Careful, Is it Really Employment. Their careers section also notes why it’s better to be an employee (as opposed to an independent contractor). They offer paid training, an hourly compensation, and benefits, noting their requirements here. It appears that they have both employment opportunities and independent contractor opportunities.

2008 100

SR: 2 Pay Questions and an Unemployment Problem

Evil HR Lady

The company considered me to be an independent contractor, but after reading about the criteria of independent contractor vs. employee, I think I was an employee. During the hearing, I could request by way of subpoena that they provide my time sheets and other documentation to prove that I was an employee and not an independent contractor, but I have a strong suspicion (after seeing what they have done in the past) that they will destroy those documents.

2010 106

fast answer Friday — 7 short answers to 7 short questions

Ask A Manager

Company is changing my status from employer to contractor. I am wondering if you can tell me if a company has the right to change an employees status from W2 to 1099 without a 30 day notice? However, they do need to ensure that you’re actually being treated as a contractor once they make that change — which is probably fairly different than you were treated as an employee. It’s fast answer Friday — seven short answers to seven short questions.

2013 58

update: my coworker won’t stop complaining about our health insurance and I feel horribly guilty

Ask a Manager

A few people wondered why my company offered any benefits since he was a contractor – we don’t, he was a contractor through his external company. He was not 1099, but he was a full-employee of the external contracting company. Remember the letter-writer whose coworker wouldn’t stop complaining about his health insurance and she felt guilty because she’d helped hire him? Here’s the update.

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asking sick employees to stay home, I don’t want to do the intern hiring, and more

Ask a Manager

I’m the head of a team of 15-20 part-time employees who are paid hourly and do not get benefits or paid leave. I know these are part-time jobs without benefits, but I bet you’d get better results if you offered paid sick days even to your part-timers. It is a freelance/contractor type position (1099) but the interns are required to be in the office during specified hours, use company-owned computers, do not set their own rates, etc.

1099 30

should I leave my dream job, interview makeup mishaps, and more

Ask A Manager

What happens if my employer gets caught misclassifying me as an independent contractor? My boss has claimed me as an independent contractor for the last 9 years and I’ve been given 1099 tax forms for each of those years. My boss is trying everything he can to make me look like an independent contractor, and I had taken his word for it that indeed I was. Happy 4th of July! To celebrate, we have seven short answers to seven short questions. Here we go… 1.

2013 59

wee answer Wednesday — 7 short answers to 7 short questions

Ask A Manager

Being paid as a contractor when I’m treated as an employee. I recently came across the following information in one of your blog posts: “Your employer can’t pay you as a contractor while treating you like an employee. If your employer controls when, where, and how you work, the government says you’re an employee—and your company needs to pay your payroll taxes and offer you the same benefits it offers to regular employees.”

2013 57

my whole team brings their spouses on business trips, turning in work too quickly, and more

Ask a Manager

If so, that’s evidence that at least some of your work might benefit from doing that regularly. They’re doing it because they want to avoid having their contract workers forcibly reclassified by the government as employees (and thus entitled to employee benefits). You should be eligible, assuming that you weren’t a 1099 independent contractor — in other words, assuming your employer took payroll taxes out of your check. (If

2018 20

3 things I learned by quitting my job in a recession

Ask A Manager

I may get there… some day. :-) Reply Candace April 4, 2011 at 11:23 pm Last year I was working at a job that paid reeeeeally well, with full & basically free benefits, retirement etc. If you are contracting yourself out and working on a 1099, then you are required to make quarterly estimated tax payments. Reply Ask a Manager April 5, 2011 at 11:33 am My understanding is that Keogh plans can’t be used if you’re just working as an independent contractor.