Question re:1099 and "subs" vs employees - Contractor Talk - Professional Construction and Remodeling Forum

JumboJack · 10-23-2007, 09:13 PM

I worked for a GC for the last 5 years up untill I got my own GC license.
In those 5 years I worked for him 40 hours a week every week.He was the one that dictated what to do,where to do it and how to do it.He paid me hourly.Was I an employee?If yes was it cut and dry or any grey area?
If he was 1099 me all this time was that the right (legal) thing to do.

I think I know the answer but up untill I started studying for my GC license
I realy was not aware of the laws re: employees vs "independent contractors".
It looks to me like I have been screwed out of FICA and other taxes that should have been paid by him.When I filed my taxes every year I paid the "self employment tax".
Thanks for any help....Jack

copusbuilder · 10-23-2007, 09:17 PM

Sounds like a no no on his part. I believe the IRS can go back and get him....but maybe if they don't get him they will look at you? Be sure you are right if you are going to bring it up??

Maybe talk to a CPA or an accountant?

JumboJack · 10-23-2007, 09:20 PM

Quote:

Originally Posted by copusbuilder

Sounds like a no no on his part. I believe the IRS can go back and get him....but maybe if they don't get him they will look at you? Be sure you are right if you are going to bring it up??

Maybe talk to a CPA or an accountant?

I have nothing to hide.I have paid all my taxes in the time I worked for him.

dougchips · 10-23-2007, 09:25 PM

Jack what he did is illegal, he's a bad boy. On the other hand he was able to pay you more since he did not have the labor burden (taxes/comp). You both benefited from his criminal activity. You are not a victim, going after him is a little shady.

KillerToiletSpider · 10-23-2007, 09:25 PM

Quote:

Originally Posted by JumboJack

I have nothing to hide.I have paid all my taxes in the time I worked for him.

You got robbed of your rights as an employee.

Celtic · 10-23-2007, 09:30 PM

Quote:

Originally Posted by dougchips

Jack what he did is illegal, he's a bad boy. On the other hand he was able to pay you more since he did not have the labor burden (taxes/comp). You both benefited from his criminal activity. You are not a victim, going after him is a little shady.

So who is the victim here?

JumboJack · 10-23-2007, 09:31 PM

Quote:

Originally Posted by dougchips

Jack what he did is illegal, he's a bad boy. On the other hand he was able to pay you more since he did not have the labor burden (taxes/comp). You both benefited from his criminal activity. You are not a victim, going after him is a little shady.

How did I benefit?I paid all my taxes owed every year.HE did not match my FICA and so on.Also knot knowing what was right or wrong I missed time off of work after hurting my self at work and thought that since I was a "indipendent contractor" I was just SOL.In the last year he did get workers comp as I am sure he was thinking it would be bad if I or the other full time employee he has got hurt bad....

copusbuilder · 10-23-2007, 09:37 PM

Quote:

Originally Posted by JumboJack

I have nothing to hide.I have paid all my taxes in the time I worked for him.

I doubt he will roll over and say "yeh, I told him where to go and what to do"
He will probably say "He was given jobs and never told when to do them?" He used his own tools, had his own vehicle??

Did you carry general liability? Just be careful the foot you shoot ain't your own.
I have seen folks become the target when they thought they were aiming the gun

Chris Johnson · 10-23-2007, 09:38 PM

Quote:

Originally Posted by Celtic

So who is the victim here?

IRS, Social Security, Insurance Companies and Jumbo Jack by the sounds of it.

JumboJack · 10-23-2007, 09:39 PM

Quote:

Originally Posted by copusbuilder

I doubt he will roll over and say "yeh, I told him where to go and what to do"
He will probably say "He was given jobs and never told when to do them?" He used his own tools, had his own vehicle??

Did you carry general liability? Just be careful the foot you shoot ain't your own.
I have seen folks become the target when they thought they were aiming the gun

I did not carry GL.And I have witnesess that will say that he was in charge of all things...

copusbuilder · 10-23-2007, 09:44 PM

Quote:

Originally Posted by JumboJack

I did not carry GL.And I have witnesess that will say that he was in charge of all things...

Remember,,,,O.J. got away with murder. Justice isn't always there. I have a son that's an attorney
If you feel you have all your ducks in a row....

What will you gain?

dougchips · 10-23-2007, 09:45 PM

Quote:

Originally Posted by Celtic

So who is the victim here?

The employer's kids when their daddy goes to jail.

JumboJack · 10-23-2007, 09:46 PM

Sorry to ramble on..The reason I am so pissed about this is after working for him loyaly for 5+ years I get my GC license.I agree to work for him as I try to get going on my own...He sends me a letter from his lawyer telliing me to remove pics from my web site of work I did working for him.On the web site it states the work was done by me as a subcontractor and I have permission from the home owners.There is allot of other thing but I will not go into them..I am so pissed I am shaking.....

I worked my ass off for him,made him alot of money.I was told on MANY ocasions that if it was not for me and the other guy that works with him he would have been fired off the job.I hate to be spitefull but I amc MAD!!

copusbuilder · 10-23-2007, 09:51 PM

Quote:

Originally Posted by JumboJack

Sorry to ramble on..The reason I am so pissed about this is after working for him loyaly for 5+ years I get my GC license.I agree to work for him as I try to get going on my own...He sends me a letter from his lawyer telliing me to remove pics from my web site of work I did working for him.On the web site it states the work was done by me as a subcontractor and I have permission from the home owners.There is allot of other thing but I will not go into them..I am so pissed I am shaking.....

I worked my ass off for him,made him alot of money.I was told on MANY ocasions that if it was not for me and the other guy that works with him he would have been fired off the job.I hate to be spitefull but I amc MAD!!

I know what it is like when you get so pissed you lay in bed and think about it all night.
That is un-healthy though.
I make it a habit of cooling down, tossing it around and then making a decision. Usually when hatred rules you are no the winner.
He sounds like a jerk,,,,the world will take care of him! i would take the high road myself and let nature run it's course

dougchips · 10-23-2007, 09:55 PM

Quote:

Originally Posted by JumboJack

I did not carry GL.And I have witnesess that will say that he was in charge of all things...

Jack, don't take my responses in this thread as an attack. If I thought you were a POS I would not spend the time responding.

I assume that:

You might of operated a business without a business license.

You might of done work that required a license without one.

Your state might of required general liability insurance which you did not have.

You might of deducted business expenses that only a business owner and not an employee could deduct. (home office, computers and other toys)

The criminal that hired you either put the labor burden money in his pocket or some of it in your pocket (higher wages). Lets say that he has $1000 to pay for a job, he could give you the whole $1000 as a sub or he could pay an employee $650 and the rest is his labor burden (taxes, comp, sick pay, vacation pay, training pay, uniforms..................................). Only he knows the answer if he paid you the extra $350 or if went in his pocket.

JumboJack · 10-23-2007, 10:02 PM

Quote:

Originally Posted by dougchips

Jack, don't take my responses in this thread as an attack. If I thought you were a POS I would not spend the time responding.

I assume that:

You might of operated a business without a business license.

You might of done work that required a license without one.

Your state might of required general liability insurance which you did not have.

You might of deducted business expenses that only a business owner and not an employee could deduct. (home office, computers and other toys)

The criminal that hired you either put the labor burden money in his pocket or some of it in your pocket (higher wages). Lets say that he has $1000 to pay for a job, he could give you the whole $1000 as a sub or he could pay an employee $650 and the rest is his labor burden (taxes, comp, sick pay, vacation pay, training pay, uniforms..................................). Only he knows the answer if he paid you the extra $350 or if went in his pocket.

I worked for him week in and week out.On many different jobs doing what HE told me to do.It was his GL that was in affect.

Floordude · 10-23-2007, 10:52 PM

File an IRS, SS-8 form. Then go file unemployment, and put him as your last payer.

The sh*t will hit the fan!!

daArch · 10-23-2007, 11:28 PM

I'm not a lawyer, nor a CPA, and I've never stayed at a Holiday Inn Express, so to judge the validity of what I have to say, read my sig line.

This sounds so convoluted that if you do anything without getting EXPERT legal and tax advice, you may end up in some trouble also. You were under his employ for a long time YET you filed as an independent. I would not be surprised if the gov't consider you responsible also. I'd let it rest. You do NOT want to draw attention to yourself unless you are as pure as the driven snow.

As far as the pictures, I would suggest to him NICELY that if any legal action were taken by him that there may be a little more scrutiny on your employment status over the past five years than he would like. Suggest that he should let bygones be bygones.

This is a sleeping dog that should not be kicked.

TigerFan · 10-23-2007, 11:56 PM

Quote:

Originally Posted by JumboJack

Sorry to ramble on..The reason I am so pissed about this is after working for him loyaly for 5+ years I get my GC license.I agree to work for him as I try to get going on my own...He sends me a letter from his lawyer telliing me to remove pics from my web site of work I did working for him.On the web site it states the work was done by me as a subcontractor and I have permission from the home owners.There is allot of other thing but I will not go into them..I am so pissed I am shaking.....

I worked my ass off for him,made him alot of money.I was told on MANY ocasions that if it was not for me and the other guy that works with him he would have been fired off the job.I hate to be spitefull but I amc MAD!!

Jumbojack - my recommendation is to wait 5 years until one of your guys in your new GC decides to go out on his own and post pictures of work he did for you on his website.

These next 5 years will give you a new perspective on the actions of your old "employer".

If you were paid for your time and treated mostly fairly, your old boss did ok by you.

skyhook · 10-23-2007, 11:57 PM

If he 1099'd you and you relied on those 1099s to pay your taxes, you are done. Let it be and move on. Attorney fees and legal problems is no way to start a business.
Good Luck with your new venture.