Q: When I received what I thought was my W-2 it was a 1099 that says I wasn’t an employee but I was what do I do to fix it?
I was an employee of a company called 12 GCS I worked for them from September 2017 until January 2018 I got a 1099-misc from them instead of a w-2 saying I was not employee but being compensated. They fired me in Jan out of the blue but if I was not an employee how could I be fired? I know I was an employee because they told me where to work, they controlled how I was paid, when I was paid, how long I worked each day, where to buy supplies, they bought the supplies, and I filled out all tax forms my first day and was told when I received my first check hand written that the Taxes were taken out. All the checks I received were hand written and no pay stubs can they legally say I wasn’t considered an employee? I made $10,246.19 according to the 1099 and I was told taxes were being filed. Can they not file without telling me list me as comp a non employee without my knowledge? I’m just really confused how this is legal the owner says he does it for every employee at his 3 companies.
A:
You can file an SS-8 with the IRS to get a decision from them on whether or not for federal tax purposes your position should be viewed as an employee/W2 or independent contractor/1099. Employers like to categorize individuals as 1099 contractors because they don't have to pay the employer match of FICA, don't have to pay taxes for unemployment insurance, don't have to pay for workers comp insurance, don't have to abide by the FMLA, don't have to worry about minimum wage, etc. This miscategorization can also cause problems for your taxes if payroll taxes were not withheld or paid in accordance with federal and state laws.
You can also talk to the Texas Workforce Commission and/or the United States Department of Labor about the mischaracterization. There are potential fines and other penalties for wilfully/knowingly moscategorizing employees as independent contractors.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
