Yeah-so while this may be 100% correct, the reality is that pushing your rights here is not necessarily in your interest. Most companies, particularly the large ones, have internal rules to avoid co-employment that are circumvented by presenting people as 1099 contractors. It is wrong and you can take legal action if they are treating you like an employee, but the likely outcome (in the long term) will be that whatever loophole that manager used to hire you as “1099 employee” will be closed. Based on my experience, the better option is to just remind your employer that as a 1099 contractor, the relationship has limits and that you’ll need to work together in a way that will avoid co-employment.
People harp on unpaid internships but fact is that new employees don’t make money in first 3 months, and it typically takes 9-12 months for them to earn enough to make profit. Unpaid interns aren’t free labour typically for a company. Most of the time the company hopes that the intern at least manages to do enough value to offset the value lost at training them.
I heard that if you are misclassified as an independent contractor, and you should have been classified as an employee, then your employer is responsible instead for the taxes that were supposed to have been withdrawn from your paycheck.
Should vs IS are very different things. You have to prove "Intentional Willful Misclassification". Generally Speaking you pay less taxes as an employee because you make way less money but you get healthcare coverage. As a contractor you get paid more but have to find your own Healthcare coverage. Generally an Independent Contractor gets paid way more per hour than a salary employee's. Contractors can choose their working hours and schedule employess usually cannot.
@@Phantom8589from what OP wrote, I assumed the "miss classification” . From what you wrote, there was no "objection” to the employer being in the hook for taxes if indeed you were misclassified.....do they reimburse the tax paid to you?
Do be classified as an independent you need to have an independent license. He explains the rules right there. Have everything in texts, if they supply tools equipment, direct you in how to do the work, set a dress code, or set a start time, you are an employee. Stupid because common folks can’t afford attorneys and these companies can hire multiple lawyers. Seems slightly awkward gtfo! As an “independent” you break your leg back, cut off a finger, you are FUKT! No work comp and the company is not liable for you or your injuries. Lots of jobs out there but there a lot of shty people aswell. Read everything before you sign. Even if you’re like me and can’t read good. Take two hours if you have to read it twice. Rich people will Fck you the hardest!
@@Phantom8589 yes but if an employer is purposefully misclassifying you, and expects you to work as a standard employee, without the benefits or increased pay, then there is a suit to be won.
@Sam-wx1oj This must be an outside the USA thing.... You know if you are an Employee because you either get benefits or you don't. You will know once hired which you have if you are contracted you do not have benefits. It is that simple. HR has to tell you at hire if what your Salary or Hr wage is and what benefits you do or Do not have. It is the Law, I have worked multiple Jobs and ALL OF THEM TELL YOU.
@IAmTheGlovenor According to IRS Publication 15-A, financial control is a key factor in determining independent contractor status. Independent contractors typically set their own rates, and lack of this control could indicate an employer-employee relationship.
@@whythiskolaveridi1883 "Typically" is nothing more than an opinion. As an independent contractor, you get to decide which jobs to take, which means you have financial control.
As a copy editor for The New York Times, I discovered that the NYT had misclassified me as an independent contractor. My realization occurred when I edited a NYT news report on a SCOTUS ruling that determined that workers are correctly considered an employee of the company, not an independent contractor, if the company determins the time and location of the work. SMH.
@carknower I did not sue. I kept my head down and kept on working. But I shudda sued coz, as in any abusive relationship, things only got worse! Every year, on the anniversary of my "association" w/ the NY Times, I requested an increase to my hourly rate of pay. I knew that male free-lance copy editors in that office (in Florida) got paid more than I did coz I saw their invoices. After my third attempt, in as many years, to get an increase to my hourly rate of pay, my boss told me -- after inviting me into a private mtg w/ him, behind closed doors -- "Look, you are Mamma Bear, and I am Daddy Bear, and there is NOTHING YOU CAN EVER DO to get into bed with me." #NotMakingItUp #AbjectNutter But as my boss had very obviously intended in that horrible, for me, situation, there were #NoWitnesses to his utterly outrageous remarks.
Yep, this is how that really goes. Maybe if legal justice didn't cost thousands and thousands of dollars, people would be more ballsy about doing shit like that. Sad truth is most of us can't afford it, we can just barely afford to get fucked over.
Well then tell them this word for word: “ok then I wish you good luck with your endeavors and I will provide my services to someone else”. If you are desperate then take the job and immediately start looking for another and the minute you find another then hand in your resignation by not showing up the day your new job starts. That’s if you really desperate.
@@rantingguy1726I’d just turn down the job and find something better… they can go find another sucker. You may think that’s your best option but it really isn’t unless you down bad and if you are then spend every bit of free time looking for a better employer then hand in your resignation… no two weeks notice, night before notice or text the next morning. Corporations can only take the piss as long as you let them.
Tax student here! This really matters when it comes to time to file and pay taxes. Independent contractors do not have money withheld from their pay check throughout the year and are subject to self employment tax. This means that an independent contractor is responsible for estimating how much they will make during the year, estimating your end of the year tax, and paying quarterly payments based on that amount. If you don’t make proper quarterly payments you could be subject to penalties and interest on top of the taxes you already owe. You only get 1099s at the end of the year so you are also expected to keep up with all of your sources of income and all of your deductions If you are self employed you can deduct expenses from that income. There is quite a lot that goes into this, so talk to your tax advisor/accountant about it.
In 1985 Wag’s restaurant closed its doors. I went to the unemployment office. I had paid into unemployment insurance during my tenure at Wag’s, part of Walgreens INC The unemployment office said that because I was a waitserver I did not qualify for unemployment insurance. Payouts. The managers got it. The cooks got it. But not the waitservers as we relied on Tips for 50% of our minimum wage! And so we’re considered independent contractors!
"Outside your usual business" is not actually a requirement. The others more or less are, but you can legitimately run a business that subcontracts its primary service to independent contractors. See also: Uber.
Every delivery driver or postal worker needs to see this, one industry where this doesnt always apply but loads of employers are trying to do this to skirt responsibility and costs onto the employee.
Yeah, like they’re desperate. They’ve got 10,000 resumes that were automatically sent to them that their A.I. automatically sorted through and the lucky ones are the ones that make it through the algorithm and get to a human sorter on the other side. An employer has zero incentives to pick you, they’ve got a thousand people in line behind you that’d be happy to bend down and kiss their rings for a job. They have all the leverage. You’re the one that needs the job they don’t need you at all.
This happened to my brother because the business didn't want to pay taxes on him. When the IRS came after him for never paying taxes, it was also found out they misclassified him. So, the business had to pay all of the back taxes. He had a schedule they chose, a uniform they picked and made him wear, they gave him the tools he needed and he was under their strict direction the whole time.
Had a business try this with me. I had a contract as an independent contractor and the people wanted me to stay at their business for 12 hours a day because of their insurance requiring 2 or more employees on premises. Well, i had a life, other clients i was working for, and they didnt have enough going on at this location to keep me busy for more than 4 hours a day.
This is a tricky area because many small businesses today lack options they had in the past, making barriers to entry much higher. Being a 1099 to arrange a reasonable exchange of labor for cash can help people get started where otherwise no business (and therefore no job) would be. The issue isn't that this arrangement exists, it's that it doesn't exist specifically as a carveout for small businesses that can't afford the enormous costs of standard W-2 employment (ie paying for benefits that should just be nationalized, and are in most other countries). We could solve this in a wide variety of ways, such as making access to startup capital more abundant, providing additional tax incentives for businesses earning below a certain amount, etc. But where this really needs to be struck down, is when companies earning millions or billions per year are skimping on labor costs they can absolutely pay, making it even more difficult for new businesses to enter a market and compete.
Small businesses aren't really the ones abusing IC classifications outside of the transportation industry. The abuse tends to come from multi-billion dollar companies that don't want to pay their half of the taxes or supply benefits.
Had a janitor job that had me classified as an independent contractor. In the contract for the job, it said that if i was unable to come in that i would have to have friends or family cover my shift and on top of that it said that if my work was deemed unsatisfactory that they could refuse payment for hours worked. Needless to say that that was the quickest i went from having a job somewhere to interviewing somewhere else.
It's weird to think this is happening in other places of the world, in Brazil it's a common practice (for abusive companies) do contract workers as PJ or MEI which is our equivalence to an independent contractor
It's unfortunately a feature, not a bug. The most annoying part is, not everyone with a MEI actually knows the regulations and what rights they have therein. My partner has a MEI and determines her own hours, pay, and puts in contract every task, how many hours toward each, and anything extra means a new contract, a new invoice, and more money. Now... At the same time, she worked with a 2nd Brazilian company that pulled that bullshit. Overworking and underpaying staff, always with excuses to try and justify what was essentially exploitation. Needless to say, that company was a shitshow.
@@merlinious01 failing to meet a single part of the test does not automatically make a person an employee. Especially the "part of your normal business" portion of the test.
This is rampant in the construction industry. It's part of the reason that construction is one of the highest (*the* highest in my state) industries for wage theft
I work for a security company that can classified all of its employees its independent contractors pay them a flat $5 an hour and to get around paying overtime they would adjust your pay for that week to reflect the correct pay for overtime of $5 overtime and your basic pay with an adjustment to total hours for the week to make it all balanced out. He paid 4mil in fines and 700k in back pay.
I didn't get to make my own schedule when I worked as an independent contractor. In fact, I was threatened that I wouldn't get work if I didn't take the leads I was given....
Yeah, last place i worked as a w2 employee for 4 years, they tried to make me a 1099 with no pay increase and no change in autonomy or duty. Basically, they were trying to get out of their tax burden and put it all on me with no change in compensation. I told them that they were running into a lawsuit trying that stunt and simply told them i resign at the end of my pay period. They begged me to come back for years afterward. Very small operation that really had no clue what way was up, and they thought they had found some magic way to save money.
soo im a regional manager with a 41k salary but set as an independent contractor. i pay my own taxes, use my car for business, use my own tools, set my own hours, no benefits, no unemployement, yet i dont get paid for extra work. example i worked 50-100 hours each week this past month for a grand reopening. yet no extra pay over the normal 40. i feel like im getting screwed, but how bad?
I dont know about your state, but in Texas, you can decide when you want to come to work and leave. You make up your hours. If, at any time someone tells you when you must do something, you are considered an employee.
@scottlemiere2024 If you talk to them about hiring someone and paying them $30 / hr, they will add around $5-8 / hr and cover social security, employment tax, etc and do all of the employment law stuff. Pretty reasonable
My brother was misclassified as an independent contractor for years, and when I told him he should report his company he defended them because they'd convinced him it was for his benefit.
We have contract employees in the US also. The main difference is if they work on a 1099 or W2 basis. You can be on a W2 and still a contractor who receives no benefits, no unemployment insurance, or job protection. The W2 just means the company pays the Social Security (6.20%, 12.40%) and Medicare (1.45%, 2.90%) taxes, half on your behalf and half withheld from your pay. On a 1099, there is no withholding and you are required to pay the full 15.3% to the IRS yourself. 1099 is for income that isn't part of regular employment such as independent contracting, gambling winnings, etc...
This Happened to me. I was an employee in everything but title, benefits, overtime pay, and taxes. And because i was technically an independent contractor they were very loose with when they would pay me as there was no set in stone day and of course when i was let go over text with no reason was given and i didn't qualify for unemployment because i was "self employed". But i still got bossed around like an employee, still got told when and where i had to be in a moments notice like an employee, was still expecting to behave exactly like an employee. Being an independent contractor is great when you actually know what you're doing but if you don't pay attention to every little thing it can be a nightmare
I worked as an “independent contractor” for years so the business could get around worker’s comp… it was shady as hell and they made $$$$$$$$ while paying me hardly anything. $40k bid for a job, $5k spent on supplies, $4k spent on labor, $1k spent on fuel, food, and lodging on the road. Bosses reaped $30k for “taking all the risk” on a 4-day job. MFers I was the one staining log houses on top of a 40ft ladder set on a concrete pad. I also did chainsaw work off picks and on top of ladders. So stupid, I’m glad they’re out of business.
Look up the rules for this for independent contractors, salaried employees, part time employees, full time employees, seasonal employees, temporary employees, interns, whatever kind of employee you might wind up becoming there. Do this in your home state and any state you plan to work in. Print out official documentation, print out notes. You are allowed to come prepared, and any interviewer who doesn't appreciate that isn't working for anyone worth hiring.
I did briefly do that when I was back in Ireland. But I also had the company they hired registered in Estonia and ended up paying no taxes. God I love free movement of capital
I'm an independent contractor working in the IT Tech industry. I left my previous job doing the same thing to escape severe harassment and discrimination. I walked away from insurance, 401k, and possibly to move up in a billion dollar company for a dollar more an hour and a promise of no more harassment. The new company is even worse, but now that I'm an independent contractor I have even less rights.
Act like a independent contractor. They can’t fire you without a lawsuit. Go into work when you want take days off when you want to go to a child’s sports game ect. As long as you complete the contracted work within a timeframe stated on your contract or reasonable timeframe if it’s not stated your pretty much in the clear.
I filed a misclasification in jersey while working for grubhub. Got it all sent back with them concluding that I was indeed an independent contractor. So what were my options? I ended up just quiting that and working a w2.
The person i hired as an IC answered yes to all those questions plus more than that found on the CA EDD website, other than the question of it being outsied the scope of our work, and the state still said that he was misclassified. The state just wants their cut of the money and to blame business owners for everything and get money.
My current work place has been trying this for years. Every so often they come out and try to get a few people to swap to 1099 instead of W2. Problem is that we don’t qualify under the law due to licensing requirements.
I worked 3 months for a lady as a "independent contractor" she "fired me " for being pregnant. Gave me $583 in cash I was owed in a parking lot . Shadyiest shit ..and this was just in 2017
When I was an independent contractor all of that was Yes except for one thing they provided me the software but after that it was all up to me a lot of money but I did make enough to pay rent and a few bills and I only worked about 25 hours a week
Im a trucker to be an independent I must own my own truck pay for all the expenses i can use the leased to companies numbers but i would run my own base plate.
My boss tried doing this to save costs. Did it really underhandedly too, threatend to fire me. Then back tracked as soon as my co-workers said no and he realized it was illegal. Also he did this while delaying my pay >:(
Yeah, this is 100% correct. If you're the independent contractor. Then all the other person has the power to do is tell you what they want done and any restrictions about the work or the workplace. But other than that you have all the power about the when the where And the how. Price is negotiable and if they don't like it they can find someone else
Major publishing is practically built on taking advantage of people like this. Outsource to vendors with "in-house freelancers" then turn a blind eye to the process cause of how overworked you are. Rinse and repeat when your mains fizzle out.
Ok, but what are you going to actually do about it? You can report them, but justice doesn't pay bills or feed your family. People aren't just accepting these jobs because they don't know any better, they take these jobs because they don't have anything better! This employer is both your exploiter and your savior. You can't afford to report them, theyre the only game in town! This is a societal problem.
time I was hired as an independent contractor my salary was 5x hire then than their avg employee. I did get to set my hours and most of the time I worked from home 3rd shift because they is when I am the most productive coding.
If I want the job, but they're saying it's an "independent contractor job" and I know it's not, can I accept the job and use this knowledge as leverage to force him to reclassify me properly or do I have to be upfront before accepting the job and risk him giving the job to someone with less knowledge of their rights?
i am paid as a contractor. but i'm actually just a company employee, but with no benefits or insurance or anything. but they do cover some of my costs and i'm paid well. so i don't complain
Saved a coworked from this happening once. She was a sweet old lady who did her job very well, employer tried to pull this on her so the contract could end in 3 months (so they wouldn't have to fire her and pay unemployment obv). I warrned her about it and she didn't sign shit
i am a contractor. when my customers want something done they ask me how. if they try to tell me how my answer is generally a drawn out, confused sounding noooooooo? as if they just asked me if the sky was lime green. the distinction might not seem obvious, but it really is. if you dont know 100% whether youre a contractor or not, you actually arent.
Had this talk with the kids. One got it in one talk. The other one couldnt get it no matter how it was presented. Several talks. Finally sent her to a lawyer and accountant. 🤯. She couldn't/wouldn't think passed the scheming, lying, bullying of it all to learn how to protect herself. Her twenties were rough because of it. See the red flags and avoid the swamp.
I'll tell you straight up, being 1099 is great for both sides when it's done properly. W2 is an antiquated system that needs to disappear entirely. It works on principles designed for the industrial revolution when people needed to punch a clock in a factory to work shifts. That model doesn't work well for service industry or retail which is why you see so many people earning shit there. The misclassification of 1099 is usually a red flag that the business doesn't have a firm grasp on business strategies/concepts. Fundamentally, McDonalds is a great example of how 1099 should work. Corporate establishes standards and drafts contracts which govern the relationship. Acme subcontracting is given a requirement for specific equipment, trained on it's use, then they're free to run their business. The problem is that Acme corporate is trying to throw a help wanted sign in the window and force people to become franchisees when they just trying to flip burgers.
Then you don't have contractors, you have employees. With contractors you get to determine what you get at the end, and then they figure out how to get there.
Alternatively, your "employer" cannot classify you as an independent contractor. That's not how contracting works. If you are an independent contractor, they are a "client", not your employer. Important distinction that helps will all of these clarifications.
I worked a job where I was misclassified about a 6 months ago. Please go report them to the IRS and stop letting malfeasant businesses get by taking advantage of their employees.
My rule is if its 1099 - I use my own computer and tools, etc. If they are forcing me to work for them as a contractor, and not providing a computer or tools - just don't do it.
Labeled as an independent contractor with a 1099... Show up to work at noon on a Wednesday with no forewarning or explanation and put it to the test. If they say shit, SUE.
1099 miscellaneous about ruined me right out of the gate not even two months out of highschool . My first job the boss did this to me and didn’t bother to warn my green ass that you need to pay taxes at the end of the year. Took me a couple of years paying extra on a W-2 to get caught up
The only thing that doenst make full sense is the make my own scedule... sometimes u can but the work that needs to be done can be dring a specific time ( u are still free to decline but they are free to hire someone else )
If you’re classified as an independent contractor then do you get to do all those things while working for them without any risk of being fired for those things? Are you able to refuse to do work you don’t want to do that the boss wants you to do since they aren’t your boss?
This is 100% correct. Also the laws around what counts as an unpaid internship changed.
This is 100% true. It's also 100% percent true that they will just hire someone else instead of you.
Edit: spelling
Yeah-so while this may be 100% correct, the reality is that pushing your rights here is not necessarily in your interest. Most companies, particularly the large ones, have internal rules to avoid co-employment that are circumvented by presenting people as 1099 contractors. It is wrong and you can take legal action if they are treating you like an employee, but the likely outcome (in the long term) will be that whatever loophole that manager used to hire you as “1099 employee” will be closed.
Based on my experience, the better option is to just remind your employer that as a 1099 contractor, the relationship has limits and that you’ll need to work together in a way that will avoid co-employment.
Land of the free huh. Speak up your rights and suffer sounds quite familiar
They haven't changed, they're just being enforced until 25 January, 2025.
People harp on unpaid internships but fact is that new employees don’t make money in first 3 months, and it typically takes 9-12 months for them to earn enough to make profit. Unpaid interns aren’t free labour typically for a company. Most of the time the company hopes that the intern at least manages to do enough value to offset the value lost at training them.
I heard that if you are misclassified as an independent contractor, and you should have been classified as an employee, then your employer is responsible instead for the taxes that were supposed to have been withdrawn from your paycheck.
Should vs IS are very different things. You have to prove "Intentional Willful Misclassification". Generally Speaking you pay less taxes as an employee because you make way less money but you get healthcare coverage. As a contractor you get paid more but have to find your own Healthcare coverage. Generally an Independent Contractor gets paid way more per hour than a salary employee's. Contractors can choose their working hours and schedule employess usually cannot.
@@Phantom8589from what OP wrote, I assumed the "miss classification” .
From what you wrote, there was no "objection” to the employer being in the hook for taxes if indeed you were misclassified.....do they reimburse the tax paid to you?
Do be classified as an independent you need to have an independent license. He explains the rules right there. Have everything in texts, if they supply tools equipment, direct you in how to do the work, set a dress code, or set a start time, you are an employee.
Stupid because common folks can’t afford attorneys and these companies can hire multiple lawyers. Seems slightly awkward gtfo! As an “independent” you break your leg back, cut off a finger, you are FUKT! No work comp and the company is not liable for you or your injuries. Lots of jobs out there but there a lot of shty people aswell. Read everything before you sign. Even if you’re like me and can’t read good. Take two hours if you have to read it twice. Rich people will Fck you the hardest!
@@Phantom8589 yes but if an employer is purposefully misclassifying you, and expects you to work as a standard employee, without the benefits or increased pay, then there is a suit to be won.
@Sam-wx1oj This must be an outside the USA thing.... You know if you are an Employee because you either get benefits or you don't. You will know once hired which you have if you are contracted you do not have benefits. It is that simple. HR has to tell you at hire if what your Salary or Hr wage is and what benefits you do or Do not have. It is the Law, I have worked multiple Jobs and ALL OF THEM TELL YOU.
I don't decide my rate, I am a Uber driver
A rate isn't a requirement for being an independent contractor.
@IAmTheGlovenor According to IRS Publication 15-A, financial control is a key factor in determining independent contractor status. Independent contractors typically set their own rates, and lack of this control could indicate an employer-employee relationship.
@@whythiskolaveridi1883 "Typically" is nothing more than an opinion. As an independent contractor, you get to decide which jobs to take, which means you have financial control.
Shut up because your just a sorry ass cog in a corporate machine
@@IAmTheGlovenordude is arguing with IRS about tax law.
As a copy editor for The New York Times, I discovered that the NYT had misclassified me as an independent contractor. My realization occurred when I edited a NYT news report on a SCOTUS ruling that determined that workers are correctly considered an employee of the company, not an independent contractor, if the company determins the time and location of the work. SMH.
Did you win your major lawsuit?
@carknower I did not sue. I kept my head down and kept on working. But I shudda sued coz, as in any abusive relationship, things only got worse! Every year, on the anniversary of my "association" w/ the NY Times, I requested an increase to my hourly rate of pay. I knew that male free-lance copy editors in that office (in Florida) got paid more than I did coz I saw their invoices. After my third attempt, in as many years, to get an increase to my hourly rate of pay, my boss told me -- after inviting me into a private mtg w/ him, behind closed doors -- "Look, you are Mamma Bear, and I am Daddy Bear, and there is NOTHING YOU CAN EVER DO to get into bed with me."
#NotMakingItUp
#AbjectNutter
But as my boss had very obviously intended in that horrible, for me, situation, there were #NoWitnesses to his utterly outrageous remarks.
"Nevermind. We're going to hire someone that doesn't ask so many questions"
Yep, this is how that really goes. Maybe if legal justice didn't cost thousands and thousands of dollars, people would be more ballsy about doing shit like that.
Sad truth is most of us can't afford it, we can just barely afford to get fucked over.
yeah that's why you ask the questions
Well then tell them this word for word: “ok then I wish you good luck with your endeavors and I will provide my services to someone else”.
If you are desperate then take the job and immediately start looking for another and the minute you find another then hand in your resignation by not showing up the day your new job starts. That’s if you really desperate.
@@rantingguy1726I’d just turn down the job and find something better… they can go find another sucker. You may think that’s your best option but it really isn’t unless you down bad and if you are then spend every bit of free time looking for a better employer then hand in your resignation… no two weeks notice, night before notice or text the next morning. Corporations can only take the piss as long as you let them.
Like someone from India
Tax student here! This really matters when it comes to time to file and pay taxes. Independent contractors do not have money withheld from their pay check throughout the year and are subject to self employment tax. This means that an independent contractor is responsible for estimating how much they will make during the year, estimating your end of the year tax, and paying quarterly payments based on that amount. If you don’t make proper quarterly payments you could be subject to penalties and interest on top of the taxes you already owe. You only get 1099s at the end of the year so you are also expected to keep up with all of your sources of income and all of your deductions
If you are self employed you can deduct expenses from that income. There is quite a lot that goes into this, so talk to your tax advisor/accountant about it.
They also do this so they don’t when ti pay you benefits and can just fire you without the grief is they want to.
Also rampant among fast food employers is misclassified managers as "exempt" when they're mostly doing line and prep work with a small side of admin.
Yep, there were tons of places that did "Manager in name only" positions to be a buffer between the public and actual management.
In 1985 Wag’s restaurant closed its doors. I went to the unemployment office. I had paid into unemployment insurance during my tenure at Wag’s, part of Walgreens INC
The unemployment office said that because I was a waitserver I did not qualify for unemployment insurance. Payouts. The managers got it. The cooks got it. But not the waitservers as we relied on Tips for 50% of our minimum wage! And so we’re considered independent contractors!
Shoulda pulled your bootstraps harder and all become managers or cooks.
@G4M5T3R you realize that's not what that means at all right and you're trying to be edgy but just came out sounding like autisms retarded cousin.
You paid into so sue for theft
Wait. The company didn't cover the difference if you didn't get enough tips to get you to minimum wage?
And that's why you don't work shitty jobs like that... Well, now you know...
This should be in EVERYONES feed
"Outside your usual business" is not actually a requirement. The others more or less are, but you can legitimately run a business that subcontracts its primary service to independent contractors. See also: Uber.
Every delivery driver or postal worker needs to see this, one industry where this doesnt always apply but loads of employers are trying to do this to skirt responsibility and costs onto the employee.
As an independent contractor it's hilarious how often someone tries to control me as an employee.
Hahaha same. One of the biggest reasons to become a contractor is the freedom.
'I just have multiple questions' 😂😂
The live event industry needs to hear this.
Even if it were a regular employment job remember that you are interviewing them just as much as their interviewing you.
(Coughing) bullshit
Yeah, like they’re desperate. They’ve got 10,000 resumes that were automatically sent to them that their A.I. automatically sorted through and the lucky ones are the ones that make it through the algorithm and get to a human sorter on the other side. An employer has zero incentives to pick you, they’ve got a thousand people in line behind you that’d be happy to bend down and kiss their rings for a job. They have all the leverage. You’re the one that needs the job they don’t need you at all.
This happened to my brother because the business didn't want to pay taxes on him. When the IRS came after him for never paying taxes, it was also found out they misclassified him. So, the business had to pay all of the back taxes. He had a schedule they chose, a uniform they picked and made him wear, they gave him the tools he needed and he was under their strict direction the whole time.
Had a business try this with me. I had a contract as an independent contractor and the people wanted me to stay at their business for 12 hours a day because of their insurance requiring 2 or more employees on premises. Well, i had a life, other clients i was working for, and they didnt have enough going on at this location to keep me busy for more than 4 hours a day.
Also, if you’re an independent contractor, you’re not an employee, anyway.
This is a tricky area because many small businesses today lack options they had in the past, making barriers to entry much higher.
Being a 1099 to arrange a reasonable exchange of labor for cash can help people get started where otherwise no business (and therefore no job) would be.
The issue isn't that this arrangement exists, it's that it doesn't exist specifically as a carveout for small businesses that can't afford the enormous costs of standard W-2 employment (ie paying for benefits that should just be nationalized, and are in most other countries).
We could solve this in a wide variety of ways, such as making access to startup capital more abundant, providing additional tax incentives for businesses earning below a certain amount, etc.
But where this really needs to be struck down, is when companies earning millions or billions per year are skimping on labor costs they can absolutely pay, making it even more difficult for new businesses to enter a market and compete.
Small businesses aren't really the ones abusing IC classifications outside of the transportation industry.
The abuse tends to come from multi-billion dollar companies that don't want to pay their half of the taxes or supply benefits.
Thank you for this. In the gig economy this is more vital than ever to know.
My last job classified me as a contractor huge mistake when im getting paid minimum wage
You walked, or they had to pay your rates?
@DanielCovington i walked. I was using my own car and my own tools.
Had a janitor job that had me classified as an independent contractor. In the contract for the job, it said that if i was unable to come in that i would have to have friends or family cover my shift and on top of that it said that if my work was deemed unsatisfactory that they could refuse payment for hours worked. Needless to say that that was the quickest i went from having a job somewhere to interviewing somewhere else.
It's weird to think this is happening in other places of the world, in Brazil it's a common practice (for abusive companies) do contract workers as PJ or MEI which is our equivalence to an independent contractor
It's unfortunately a feature, not a bug. The most annoying part is, not everyone with a MEI actually knows the regulations and what rights they have therein. My partner has a MEI and determines her own hours, pay, and puts in contract every task, how many hours toward each, and anything extra means a new contract, a new invoice, and more money.
Now... At the same time, she worked with a 2nd Brazilian company that pulled that bullshit. Overworking and underpaying staff, always with excuses to try and justify what was essentially exploitation. Needless to say, that company was a shitshow.
Ps, e ai BR!
I actualy knew a body shop that was doing this. They actualy could have answered yes to all those
No, as it wasnt outside the scope of their business.
Actually, thank you, actually.
@@merlinious01 failing to meet a single part of the test does not automatically make a person an employee. Especially the "part of your normal business" portion of the test.
Unexpected Ryan from the Try Guys
This is rampant in the construction industry. It's part of the reason that construction is one of the highest (*the* highest in my state) industries for wage theft
I want one on outside sales. Apparently, C Cola has this thing were all the merchandisers are paid half rate for overtime.
Yup. That’s 100% of my husband’s work in the live events industry. But you can either be misclassified or not work. Especially in Cali. 🤷♀️
Yep. Live events industry somehow has a blind eye turned away from it when it comes to these classifications 😢
I work for a security company that can classified all of its employees its independent contractors pay them a flat $5 an hour and to get around paying overtime they would adjust your pay for that week to reflect the correct pay for overtime of $5 overtime and your basic pay with an adjustment to total hours for the week to make it all balanced out. He paid 4mil in fines and 700k in back pay.
I didn't get to make my own schedule when I worked as an independent contractor. In fact, I was threatened that I wouldn't get work if I didn't take the leads I was given....
Yeah, last place i worked as a w2 employee for 4 years, they tried to make me a 1099 with no pay increase and no change in autonomy or duty. Basically, they were trying to get out of their tax burden and put it all on me with no change in compensation. I told them that they were running into a lawsuit trying that stunt and simply told them i resign at the end of my pay period. They begged me to come back for years afterward. Very small operation that really had no clue what way was up, and they thought they had found some magic way to save money.
soo im a regional manager with a 41k salary but set as an independent contractor. i pay my own taxes, use my car for business, use my own tools, set my own hours, no benefits, no unemployement, yet i dont get paid for extra work. example i worked 50-100 hours each week this past month for a grand reopening. yet no extra pay over the normal 40. i feel like im getting screwed, but how bad?
Reverse plot armor bad
A lot. I make what you do with 0 overtime and I operate just 1 machine.
You should bill for the overtime
I dont know about your state, but in Texas, you can decide when you want to come to work and leave. You make up your hours. If, at any time someone tells you when you must do something, you are considered an employee.
Bro I pay my entry level employees than 41k, start looking for a new job with the quickness
Gannett did this when i delivered their newspapers. Net pay before taxes was sub min wage
That is why so many businesses now just hire through temp agencies.
The problem is that temp agencies are WAY too expensive.
@scottlemiere2024 If you talk to them about hiring someone and paying them $30 / hr, they will add around $5-8 / hr and cover social security, employment tax, etc and do all of the employment law stuff. Pretty reasonable
My brother was misclassified as an independent contractor for years, and when I told him he should report his company he defended them because they'd convinced him it was for his benefit.
In Canada we have"contractor employees". No benefits or job protection, but they do deduct taxes for you.
We have contract employees in the US also. The main difference is if they work on a 1099 or W2 basis. You can be on a W2 and still a contractor who receives no benefits, no unemployment insurance, or job protection.
The W2 just means the company pays the Social Security (6.20%, 12.40%) and Medicare (1.45%, 2.90%) taxes, half on your behalf and half withheld from your pay.
On a 1099, there is no withholding and you are required to pay the full 15.3% to the IRS yourself.
1099 is for income that isn't part of regular employment such as independent contracting, gambling winnings, etc...
@LC-uh8if thanks for that explanation. I see a lot of trucking Jobs in the US are the W2 variant too
This Happened to me. I was an employee in everything but title, benefits, overtime pay, and taxes. And because i was technically an independent contractor they were very loose with when they would pay me as there was no set in stone day and of course when i was let go over text with no reason was given and i didn't qualify for unemployment because i was "self employed". But i still got bossed around like an employee, still got told when and where i had to be in a moments notice like an employee, was still expecting to behave exactly like an employee. Being an independent contractor is great when you actually know what you're doing but if you don't pay attention to every little thing it can be a nightmare
I worked as an “independent contractor” for years so the business could get around worker’s comp… it was shady as hell and they made $$$$$$$$ while paying me hardly anything. $40k bid for a job, $5k spent on supplies, $4k spent on labor, $1k spent on fuel, food, and lodging on the road. Bosses reaped $30k for “taking all the risk” on a 4-day job.
MFers I was the one staining log houses on top of a 40ft ladder set on a concrete pad. I also did chainsaw work off picks and on top of ladders. So stupid, I’m glad they’re out of business.
Look up the rules for this for independent contractors, salaried employees, part time employees, full time employees, seasonal employees, temporary employees, interns, whatever kind of employee you might wind up becoming there. Do this in your home state and any state you plan to work in. Print out official documentation, print out notes. You are allowed to come prepared, and any interviewer who doesn't appreciate that isn't working for anyone worth hiring.
I did briefly do that when I was back in Ireland. But I also had the company they hired registered in Estonia and ended up paying no taxes. God I love free movement of capital
I'm an independent contractor working in the IT Tech industry. I left my previous job doing the same thing to escape severe harassment and discrimination. I walked away from insurance, 401k, and possibly to move up in a billion dollar company for a dollar more an hour and a promise of no more harassment. The new company is even worse, but now that I'm an independent contractor I have even less rights.
What should I do if this has happened?
Act like a independent contractor. They can’t fire you without a lawsuit. Go into work when you want take days off when you want to go to a child’s sports game ect. As long as you complete the contracted work within a timeframe stated on your contract or reasonable timeframe if it’s not stated your pretty much in the clear.
I filed a misclasification in jersey while working for grubhub. Got it all sent back with them concluding that I was indeed an independent contractor. So what were my options? I ended up just quiting that and working a w2.
This happened to me. I had no taxes withheld and owed a LOT at the end of the year.
The person i hired as an IC answered yes to all those questions plus more than that found on the CA EDD website, other than the question of it being outsied the scope of our work, and the state still said that he was misclassified. The state just wants their cut of the money and to blame business owners for everything and get money.
My current work place has been trying this for years. Every so often they come out and try to get a few people to swap to 1099 instead of W2. Problem is that we don’t qualify under the law due to licensing requirements.
I worked 3 months for a lady as a "independent contractor" she "fired me " for being pregnant. Gave me $583 in cash I was owed in a parking lot . Shadyiest shit ..and this was just in 2017
When I was an independent contractor all of that was Yes except for one thing they provided me the software but after that it was all up to me a lot of money but I did make enough to pay rent and a few bills and I only worked about 25 hours a week
Im a trucker to be an independent
I must own my own truck pay for all the expenses i can use the leased to companies numbers but i would run my own base plate.
As a new business owner, this stuff makes me sick! Take care of your guys!
I had a similar situation then fired after 3 years for taking time off when I opened 2 locations for the owner.
My boss tried doing this to save costs. Did it really underhandedly too, threatend to fire me. Then back tracked as soon as my co-workers said no and he realized it was illegal. Also he did this while delaying my pay >:(
This is how i got a settlement check!!! Was classified as this but shoulda been an employee.
Yeah, this is 100% correct. If you're the independent contractor. Then all the other person has the power to do is tell you what they want done and any restrictions about the work or the workplace. But other than that you have all the power about the when the where And the how. Price is negotiable and if they don't like it they can find someone else
There are so many problems that would be solved by us all just being independent contractors that it's no wonder we're told we hate it.
So you're saying you want to pay more in taxes?
@scottlemiere2024 I wouldn't be surprised if being an independent contractor did increase one's taxes since taxes are used to encourage behavior
Major publishing is practically built on taking advantage of people like this. Outsource to vendors with "in-house freelancers" then turn a blind eye to the process cause of how overworked you are. Rinse and repeat when your mains fizzle out.
Ok, but what are you going to actually do about it? You can report them, but justice doesn't pay bills or feed your family. People aren't just accepting these jobs because they don't know any better, they take these jobs because they don't have anything better! This employer is both your exploiter and your savior. You can't afford to report them, theyre the only game in town! This is a societal problem.
No it's just common sense. Yup think New York City and Albany have the same access to the markets
Yep. And systemic problems require systemic solutions.
@@RipliWitani what are you talking about?
@@DrMattHH damn straight. Not naming any names or pointing to an recent events, of course 😂
Can you make one for FLSA exemption?
There are also rules if the employer classifies you as salaried or not.
Those are more ignored than the 1099 rules though.
time I was hired as an independent contractor my salary was 5x hire then than their avg employee. I did get to set my hours and most of the time I worked from home 3rd shift because they is when I am the most productive coding.
If I want the job, but they're saying it's an "independent contractor job" and I know it's not, can I accept the job and use this knowledge as leverage to force him to reclassify me properly or do I have to be upfront before accepting the job and risk him giving the job to someone with less knowledge of their rights?
i am paid as a contractor. but i'm actually just a company employee, but with no benefits or insurance or anything. but they do cover some of my costs and i'm paid well. so i don't complain
“Hey we forgot to save for taxes now what?”
“Tell the restaurant staff they are all independent contractors.”
-true story.
If this were enforced in British Columbia in Canada, the entire IT sector would collapse. Not saying it shouldn’t; just that it’s that pervasive
Yep thats what amazon is doing up here were "a independent company" im working for currently
Wish i had known this when I was 16, waist deep in flood water next to an almost completely submerged electrical box...
Saved a coworked from this happening once. She was a sweet old lady who did her job very well, employer tried to pull this on her so the contract could end in 3 months (so they wouldn't have to fire her and pay unemployment obv). I warrned her about it and she didn't sign shit
Even as an employee, i still set my hours 😂😂😂
i am a contractor. when my customers want something done they ask me how. if they try to tell me how my answer is generally a drawn out, confused sounding noooooooo? as if they just asked me if the sky was lime green.
the distinction might not seem obvious, but it really is. if you dont know 100% whether youre a contractor or not, you actually arent.
I got let go as a full time once but said I can do contract work for them, no thanks.
Had this talk with the kids. One got it in one talk. The other one couldnt get it no matter how it was presented.
Several talks. Finally sent her to a lawyer and accountant. 🤯. She couldn't/wouldn't think passed the scheming, lying, bullying of it all to learn how to protect herself. Her twenties were rough because of it. See the red flags and avoid the swamp.
The only thing running through my mind was WWE when Vince McMahon was still in charge.
I make double as an independent contractor, they're always trying to full time me.
I'll tell you straight up, being 1099 is great for both sides when it's done properly. W2 is an antiquated system that needs to disappear entirely. It works on principles designed for the industrial revolution when people needed to punch a clock in a factory to work shifts. That model doesn't work well for service industry or retail which is why you see so many people earning shit there.
The misclassification of 1099 is usually a red flag that the business doesn't have a firm grasp on business strategies/concepts. Fundamentally, McDonalds is a great example of how 1099 should work. Corporate establishes standards and drafts contracts which govern the relationship. Acme subcontracting is given a requirement for specific equipment, trained on it's use, then they're free to run their business. The problem is that Acme corporate is trying to throw a help wanted sign in the window and force people to become franchisees when they just trying to flip burgers.
And if you're in the trades, you need a Contractors license to legally be 1099. Don't let them pay you cash, w2 employee with benefits or bust.
“Free from your direction”??
If I’m paying you, you’re doing what I’m telling you to do! 🤦♂️
Then you don't have contractors, you have employees.
With contractors you get to determine what you get at the end, and then they figure out how to get there.
And if the employer has you working on the premises but tries to make you an independent contractor that is illegal.
I’m gonna need that binder
I did this once and got lucky that I only owed a little bit of money.
Alternatively, your "employer" cannot classify you as an independent contractor. That's not how contracting works.
If you are an independent contractor, they are a "client", not your employer.
Important distinction that helps will all of these clarifications.
I worked a job where I was misclassified about a 6 months ago. Please go report them to the IRS and stop letting malfeasant businesses get by taking advantage of their employees.
I think everyone in my company has been this classified, but yet the government doesn’t want to do anything about it?
I feel like this needs a part 2 explaining the why.
My rule is if its 1099 - I use my own computer and tools, etc.
If they are forcing me to work for them as a contractor, and not providing a computer or tools - just don't do it.
Been classified as a compensated volunteer
Great, and I will be classifying you as my previous employer.
this doesn’t work in real life by the way… You just don’t get the job or get immediately terminated.
I thought that was markiplier for a quick second
It's crazy how many cleaning companies classify their employees as 1099 and its like "so you dont provide them with any supplies?"
In California, the law is even more favorable for workers. Look up California’s ABC test.
No to all, but you get to carry all of the liability if anything goes sideways 🤣
He reminds me of Wilford warfstache 😂 markiplier
Labeled as an independent contractor with a 1099... Show up to work at noon on a Wednesday with no forewarning or explanation and put it to the test. If they say shit, SUE.
1099 miscellaneous about ruined me right out of the gate not even two months out of highschool . My first job the boss did this to me and didn’t bother to warn my green ass that you need to pay taxes at the end of the year. Took me a couple of years paying extra on a W-2 to get caught up
I hate it because then they don’t have to pay taxes on you and you have to pay the full tax instead of splitting it with your employer.
If I am an independent contractor I am no longer on your insurance so I am going to need a lot more money to pay someone to handle benefits.
The only thing that doenst make full sense is the make my own scedule... sometimes u can but the work that needs to be done can be dring a specific time ( u are still free to decline but they are free to hire someone else )
If you’re classified as an independent contractor then do you get to do all those things while working for them without any risk of being fired for those things? Are you able to refuse to do work you don’t want to do that the boss wants you to do since they aren’t your boss?
Every Professional Wrestler ever.
Sometimes being 1099-d
Can work to your benefit tho. Deduct that milage and tools you bought yo
When does the next season of My Name Is Earl come out?