Tuesday, April 13, 2010

Is being offered a subcontractor position the same as employment in South Florida?

company I was working for wanted to remove me from payroll and pay me as a sub after 14 months of employment.

Is being offered a subcontractor position the same as employment in South Florida?
The other responders are correct. As a subcontractor you will pay extra tax into social security and medicare that the employer should have paid, and you won't be eligible for unemployment if you get laid off or workers comp it you get hurt on the job.
Reply:No it is not. Your employer is doing this to avoid employee taxes. This is a common practice but mostly for the benefit of the employer. You might want to take to some one at the state labor board.
Reply:I have a canned explanation to apparently clueless independent contractors and, if you are asking relatively simple questions in this forum, no offense, but you qualify as clueless:





Some employers try to get around paying employment taxes (social security and unemployment) and other employee benefits like workers compensation insurance by improperly classifying employees as independent contractors. The basic issue is the amount of control the employer has over the worker. If you are required to show up for work--personally--at a particular time, punch the clock, use the employer’s equipment and are paid an hourly rate, or another set rate based on time served, you are an employee. If you didn't understand the difference when you posed your question, I would be even more convinced that you are an employee. What is your preference, Slotted or Phillips? Complete an IRS Form SS-8 to get an official ruling on your status. This will help you get unemployment if you get fired. When you file your income tax return, you can attach Form 8919 Uncollected Social Security and Medicare Tax on Wages and only pay the employee's half of social security. You will still have to cough up all the income tax. IRS and the states are stepping up enforcement in this abuse area.





You can not mutually agree to be an independent contractor instead of an employee. Your duties and the amount of controller the employer have is what is important. If your job is unchanged, IRS and the state will not recognize your new status.


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