can an employer deduct wages from you if you are a 1099 independent contractor?
you cant be a contractor and collect wages/have a worksite boss. pick one category or the other. sounds to me like you are not actually a contractor. form ss-8 is your friend; go look at one, and read the IRS instructions/info on its usage.
by wg0z - 15 hours ago
What are the terms of your contract? That will tell you. Are you really an independent contractor or are you an employee who is being abused? You sound like the latter because a person you hires an independent contractor can't make them work any particular hours at all. Considering the number of people involved, you should contact your state labor department or the US Department of Labor Wage & Hour Division and explain what is going on because you may be entitled to overtime. Lots of overtime! You can also file IRS Form SS-8 to get your status clarified.
by Max Hoopla - 15 hours ago
If you do not provide your employer with a W-9 form with your social security number or TIN and stating that you are not required by the IRS to have withholding, they are supposed to withhold an amount towards federal taxes (28% "backup withholding" for independent contractors). However, if they just keep the deducted money and do not report it on your 1099, you are being robbed (unless it is for something else, like union dues, medical insurance, etc.). For example see http://www.irs.gov/instructions/i1099gi/ar02.html#d0e1891 which is branched off of http://www.irs.gov/instructions/i1099gi/index.html Note that as an independent contractor, you are not an employee and your pay is NOT wages, it is non-employee compensation.
by efflandt - 15 hours ago
it sounds like you really need to get the SS8 from www.irs.gov and complete it, submit to IRS and let them determine your status what is the $270 being deducted if you are an independent contractor? my son worked for someone who kept deducting their workmen's comp from their paychecks and I repeatedly told him it was illegal, they finally stopped doing it as an independent contractor, it means exactly that, INDEPENDENT, you can work when you want, the hours you want etc. that's what independent means
by tro - 15 hours ago
For those people who say you are most likely an employee, how would they know? You don't even tell us what job you do. Let's say you are an independent contractor, so you are the business owner and you have a client. Is the client allowed to dictate your hours = no. Is the client allowed to tell you what hours he wants you to work = yes. Is the client allowed to not hire you, if you are unable/unwilling to work the hours he wants = yes. You don't even tell us what the reason for the deduction is? Do you even know? Clients are allowed to deduct earnings for many things - some even provide health insurance. So it would depend what the deduction is for and whether it is part of your contract, if he is allowed to deduct this money. Who do you talk to about this? First. You find out what the deduction is for. Second. You read your contact to see if you agreed to this deduction. Ultimately, if you are really an independent contractor and want your money back you will have to sue him. It's unlikely that you will win because you allowed this to happen. Additionally, it's very unlikely that he will continue to work with you. My thought is for you to send us another question telling us specifically what you do, so we can help you decide if you are an employee or not. If you are an employee, you would have other rights. My guess is, if he is a large company with 100s independent contractors, he has already done the legwork and knows you are classified legally. No company in their right mind would mis-classify 100s of staff and risk paying penalties.
by A Hunch - 15 hours ago
Is he deducting Federal Income Tax from your wages? Is he deducting FICA and Medicare Tax from your paycheck? What about State Income Taxes? Are these being deducted? Does the pay stub that (s)he provides give you any explanation as to what is being deducted? Have you ever asked your employer to explain the deductions? There are too many variables involved for anyone not connected to you to resolve without additional information. Last but not least, have you considered speaking to an attorney regarding this situation?
by RUSerious - 15 hours ago
Actually it sounds more like legally you're an employee, not an independent contractor. You can file form SS-8 with the IRS and ask for a determination. This could mean you'd end up out of a job. The best thing you can do is probably look for another job. It sounds like this guy is doing a number of things illegally. What is he claiming the deductions are for?
by Judy - 15 hours ago
If you are a 1099 independent contractor I do not believe it is legal for your employer to withhold deductions but that may depend on the state you live in. Not sure. But I suggest calling the IRS.
by Z3 - 15 hours ago
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