1099 Misclassification Costs Employer Big Time

You think just because your employer is a big corporation with deep pockets that they know how to legally classify workers? Well, you might very well be wrong. Check out the price this company had to pay because of 1099 misclassification issues. Click here to check out the very costly verdict with millions in penalties against this once thriving newspaper business.

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22 Responses to “1099 Misclassification Costs Employer Big Time”

  1. Consta says:

    My husband was a cook in a restaurant and they paid him cash and they told him that because they didn’t take out taxes they refuse to give him a w2 or 1099 form is there something we can do or where to go for help?

    • 10 til 2 says:

      Consta: Pretty sure that is totally illegal. Your husband should definitely call the Department of Labor to help determine his options.

  2. Jo says:

    Work as a 1099 employee at trade shows on commission. We choose what weeks or weekends we want to work…but there was a company manual policy that we had to sign on how to do the job, a dress code and even have a manager that corrects you if you don’t use the correct sales techniques. I think it’s borderline employee.

  3. Donny says:

    I’m an independent contractor however my employer sent a w2… I made over 40k but they took out $10.00 in taxes but because they sent w2 my taxes is all screwed up what should I do?

    • 10 til 2 says:

      Prior to starting work, did you fill out a w4 or a W9? Did you ever submit a bill for your work or were you automatically issued paychecks? It sounds like you may be a contractor and the payroll department simply messed up by issuing you a W2 instead of a 1099. You might want to speak with them to find out their take on the situation. Either way, Uncle Sam needs to be paid what he is due. As we are not employment attorneys, we highly recommend you speak to the Department of Labor in your state for insight into your options. On a final note, if you are a contractor, you should try to refrain from using the word “employer.” By definition, your “employer” is actually your client if you are a 1099 worker.

  4. Marlyn says:

    I work for a doctors office as a medical assistant/ Front office Monday to Friday a total of 40 hours , she had me fill a 1099 . Is this legal ?
    I live in Maryland

  5. Tyler says:

    I work for a carpet cleaning company on my employers schedule, where a uniform, drive the company vehicle and use their equipment. I’m also paid by the hour and am required to work every day. Am I an employee? Also if my boss fires me for questioning him about this is it wrongful termination?

    • 10 til 2 says:

      Tyler: We are not employment attorneys, so it is important that you speak to one or the Department of Labor in your state. Good luck and keep us posted.

  6. Pat says:

    The moving industry provides a service and are they 1099 workers. Does anyone know any more details about this? The workers come through a temp service because work is sporadic. Any comments?

  7. mary says:

    I am a contracted employee. First mistake. I go into the office, have
    An employee email address, have certain dates and times of when everything needs to be done, etc. They sent me a 1099 and now I owe a ton of taxes even a self employment tax even though I only work for this one employer. What are my options? If I ever lose this job I cannot collect unemployment either. Are taxes higher for contracted employees?

  8. Elizabeth says:

    Hello, so i work at a company Commission only and only get paid when a deal funds, so basically i worked 3 months until i received my commission. I filled out a 1099, but if i take days off they give me grief, asking what time I’m coming in, and get sarcastic with me when i tell them I’m not. They also said we can come in 9-5 or 1-9. And they also threatened to poach deals in our pipelines if were not in office.

  9. Office Manager says:

    I am an office assistant and work way over 40 on average. I get paid hourly. I have been paid for 13 months. I have never received overtime. I am 1099. Is this illegal?

    • 10 til 2 says:

      Office Manager: Let us preface this by saying that we are not attorneys, so we are unable to give you legal advice or weigh in on the legality of your issue; we suggest you contact a lawyer for a definitive answer to your questions. That being said, it seems you have two different issues: That of overtime and that of contractor status. As a 1099, you are likely not entitled to overtime, as you are considered self-employed working for a client. Now whether or not you are an actually an employee or a contractor takes on even more importance, because as an employee you might be entitled to overtime (as well as the business covering some of the tax burden and workers comp). We suggest you contact the Department of Labor in your state; they may be able to help guide you. Also, you can check out this page on the IRS website for clarification on employment status. Good luck to you and keep us posted.

  10. Susan says:

    I work for county government as a contract worker that fulfills state mandated work that is part of a federally funded subsidy program. I have been doing this part time work for almost three years . I sign a contract that says I basically have no employee rights every year. I submit an invoice every month and do not get paid regularly. The county trained me and I attend mandated meetings with a supervisor where I am advised about my work. Is my 1099 status appropriate ?

    • 10til2 says:

      Susan: We are not employment attorneys; we suggest you speak to one or contact the Department of Labor in your state to find the answers you seek. Best of luck to you.

  11. Constance OBrien says:

    I have a friend who is an interior designer. She was having some financial problems anderson needed to sell some of her personal furniture, art and some she bought at market. I had another friend who is building a house and needed a lot of things to fill the house. So I put them together and she bought almost 20,000 of her things. She the Intd designer was going to give me 10 percent for helping her. Now finally after 6 months she is wanting to rush me the 10 percent via ups and deduct that also. She is insistent I cash it before the end of the year and oh it wanting to send me a 1099!!! What is this about ? Please advise what a friend right? I am a realtor and I get 1099 from my broker but I am not an independent contractor for this woman

    • 10 til 2 Central says:

      Constance: We are not tax attorneys and anything we post here is purely conjecture on our part and should not be construed as legal or tax advice. But we can tell you that regardless of whether one is considered an independent contractor or just a friend getting compensation for doing a favor, that person is required by law to claim all income when they file their taxes. So the fact that your friend considers you a contractor really has no bearing on your related tax burden. Best of luck to you!

  12. KD says:

    I worked for a painting company and the employer paid me in checks, typically bank checks (not sure if that would be considered a personal check). I received a 1099. I now owe loads of money to the irs and will receive no tax return( I haven’t worked for this painting company in a few year, I work somewhere else now)

    is this legal for my former employer?

    if so, what can I do to clear myself of my debt to the irs? if anything at all.

  13. keith sirota says:

    I received a determination from the IRS that I was considered a common law employee. I filed an ss-8 and they made that determination on my behalf. My former employer refuses to issue a w-2 and pay my ss and medicare. What should I do and can I sue him?

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