My Employer is Committing Tax Fraud ... I THINK. Your Thoughts? | |
todaysnewnormal
User ID: 79718805 United States 11/15/2021 08:31 AM Report Abusive Post Report Copyright Violation | It depends. Employees of a company can be considered both an employee AND an independent contractor for separate and distinct work. It would depend upon what your normal day job is and, if it has nothing to do with soliciting bookings, then your employer is classifying you as an employee for your normal day job and pay indicated on W2. For the work you do to solicit bookings, you are essentially working for yourself and control how much or little you earn and are classified as an independent contractor and pay reflected on 1099-MISC. Here's some more info - [link to www.payrollpartners.com (secure)] |
Overdue
User ID: 80810880 United States 11/15/2021 08:37 AM Report Abusive Post Report Copyright Violation | Blackmail them and make some money |
burneracct
User ID: 81124368 United States 11/15/2021 08:41 AM Report Abusive Post Report Copyright Violation | |
HuJack007
User ID: 76334789 United States 11/15/2021 08:50 AM Report Abusive Post Report Copyright Violation | |
WifeOfHusband
(OP) User ID: 80535261 United States 11/15/2021 09:06 AM Report Abusive Post Report Copyright Violation | It depends. Employees of a company can be considered both an employee AND an independent contractor for separate and distinct work. It would depend upon what your normal day job is and, if it has nothing to do with soliciting bookings, then your employer is classifying you as an employee for your normal day job and pay indicated on W2. For the work you do to solicit bookings, you are essentially working for yourself and control how much or little you earn and are classified as an independent contractor and pay reflected on 1099-MISC. Here's some more info - [link to www.payrollpartners.com (secure)] Quoting: todaysnewnormal Contractors are no longer filed under 1099-MISC, but instead under 1099-NEC. Another issue I take with this is that I do voice acting and charge a premium rate for my work. I have a studio set up, etc. I only took this job because what we do is pretty awesome and it's a lot of fun as well. Just a part-time gig anyway. But they built animatronic things for the main entry of the building and needed voice work done to be the voice of their new mascot. They even changed their logo to include this animal they had custom built. My voice is very unique and they knew I did voice acting on the side, so I offered to do contract work with them and would just charge them my normal rate, with a small discount. The company itself is VERY small. We're talking 9 employees small. They told me "well, we're not sure how that will work when paying an employee as a contractor too. That will be an accounting nightmare so we'll just pay you the hourly rate if you want." I knew they could still pay me as a contractor, without issue, but this was when I first started so I did it because I thought it would be cool anyway. No big deal, but I ended up making about 25% of what I would have charged them for it. Plus, it was a small business and I looked at it like investing in something that could become larger in the future. The owners are quite talented. Fast-forward 3 months, right when they began to unveil the animatronic animal, plus my voice (and are now asking me to do promo videos with that voice), and now they're going to classify us as contractors when handing out cards that ONLY employees can get (no one but employees can hand these cards out), and maybe you can see why I'm pretty peeved. I should have just declined their previous offer of hourly rate for the voice over and let them pay someone else to do it, but I did it because the business IS really cool and a lot of fun to do. I don't hate being there. But, what I took as owners (husband and wife) of a mom & pop shop being new to being in business, not quite understanding all of the ins and outs, I now realize was a huge lie. They understand completely what they're doing. They knew then that they could do it and they played dumb. It's very irritating. It's so irritating that I may buck up against their request that I be paid hourly for the promo work because if they don't like it, they'll end up having to hire someone else to re-record the animal and reprogram it for someone else's voice. Ugh. Again, it's not a major issue as I CAN just not agree to their terms and I think that will not be an issue either way, but it's very annoying and I hate that people do these underhanded things just to get by. Last Edited by WifeOfHusband on 11/15/2021 09:08 AM |
Usually Curious 2018
User ID: 3156426 United States 11/15/2021 09:57 AM Report Abusive Post Report Copyright Violation | |
Zovalex
User ID: 80278243 11/15/2021 10:05 AM Report Abusive Post Report Copyright Violation | The Payer is doing nothing underhanded at all. In fact, the way I see it, dividing your work between hourly and independent contract work is the only way to structure it correctly. In my view, the comp plan they have created (w2 vs 1099) is the correct structure. Otherwise, all the “employees” could legally claim that talking to someone about a promo while standing in line at the grocery store constitutes “work” and therefore compensable under the federal Fair Labor Standards Act, when in fact the “employer” has absolutely NO control of any kind over your actions when not doing your voice acting. All due respect, OP, but you need a better understanding of the tax laws that govern this situation. I am absolutely certain the Payer consulted with a qualified labor law attorney before rolling out that agreement. They’re not doing anything wrong. Nor is it a “loophole”. It is the correct form of compensation based on what you’ve described. . “Mental slavery is the worst form of slavery. It gives you the illusion of freedom, makes you trust, love, and defend your oppressor, while making an enemy of those who are trying to free you or open your eyes.” -Fiyah “None are more hopelessly enslaved than those who falsely believe they are free.” -Johann Wolfgang von Goethe “You have been programmed to resist the very person that is here to set you free, from the prison of your Mind... You are not free... everything you are has been manufactured by Minds that have not your best interest. You are imprisoned by beliefs and not reality. Religions are mental programs to imprison your Mind.” -SOL |
anonymous4412
User ID: 81128640 United States 11/15/2021 10:13 AM Report Abusive Post Report Copyright Violation | |
WifeOfHusband
(OP) User ID: 80535261 United States 11/15/2021 10:46 AM Report Abusive Post Report Copyright Violation | when in fact the “employer” has absolutely NO control of any kind over your actions when not doing your voice acting. Quoting: Zovalex Voice acting is not part of my job description. I did not use the employer's equipment, I used my own. They still did not control the manner in which these things were recorded, nor did they control the voice. The only control they had was with scripting, which they would have had control over anyway, as a contractor. Had I recorded the voice using THEIR equipment, at THEIR facility, using THEIR electricity and computers and DAWs, and mixers, and microphones, then I would agree with you. But they did not provide any of that. Every minute of the work that I did was using my own, very expensive, equipment which is owned by a company that I own. It was performed inside a sound-proof building that I built specifically for voice work and other recording needs. They provided none of that. They don't even HAVE the equipment to do all of what I did. Sure, they could have used a cell phone and just slapped it into the pi, but they wanted high quality voice work but didn't want to pay for it. So, you're 100% wrong about your belief that the company was right to only pay me hourly, at my normal rate for other, wholly unrelated work. 100% incorrect. You're so wrong that, using your logic, no company would ever be able to hire a voice acting company because "they'd have no control," which is just nonsense. As for the other classifications, I don't know because I'm not a tax expert, but I know that handing out business cards, as a representative of their company that I'm employed with, which can only be done as an employee, for which I have zero control over, nor can I negotiate the rate of pay, is NOT contract work. Last Edited by WifeOfHusband on 11/15/2021 10:51 AM |
WifeOfHusband
(OP) User ID: 80535261 United States 11/15/2021 10:56 AM Report Abusive Post Report Copyright Violation | Oh, and another thing -- what they are paying would be considered commission. An employee that is paid commission is filed under employee/employer income, filed under the supplemental wages, NOT a 1099-MISC. You claimed that they'd be on the hook for any time an employee handed out a card, but that's not true at all, because it would be considered supplemental income, not an hourly payment. That is commission, period. |
Zovalex
User ID: 80278243 11/15/2021 04:29 PM Report Abusive Post Report Copyright Violation | when in fact the “employer” has absolutely NO control of any kind over your actions when not doing your voice acting. Quoting: Zovalex Voice acting is not part of my job description. I did not use the employer's equipment, I used my own. They still did not control the manner in which these things were recorded, nor did they control the voice. The only control they had was with scripting, which they would have had control over anyway, as a contractor. Had I recorded the voice using THEIR equipment, at THEIR facility, using THEIR electricity and computers and DAWs, and mixers, and microphones, then I would agree with you. But they did not provide any of that. Every minute of the work that I did was using my own, very expensive, equipment which is owned by a company that I own. It was performed inside a sound-proof building that I built specifically for voice work and other recording needs. They provided none of that. They don't even HAVE the equipment to do all of what I did. Sure, they could have used a cell phone and just slapped it into the pi, but they wanted high quality voice work but didn't want to pay for it. So, you're 100% wrong about your belief that the company was right to only pay me hourly, at my normal rate for other, wholly unrelated work. 100% incorrect. You're so wrong that, using your logic, no company would ever be able to hire a voice acting company because "they'd have no control," which is just nonsense. As for the other classifications, I don't know because I'm not a tax expert, but I know that handing out business cards, as a representative of their company that I'm employed with, which can only be done as an employee, for which I have zero control over, nor can I negotiate the rate of pay, is NOT contract work. Not only did you fail to explain any of that in your original post, but you conceded in your initial argument that you were a W-2 wage-earner and you contested the Payer classifying you as a 1099 contractor. Your post above completely contradicts the arguments you posted in your first diatribe, because now you’re arguing that you should have been classified as a 1099 contractor for ALL of your work performed. You’re clearly a very confused (and emotionally unstable) woman. Stick to doing voice acting, sweet cheeks, because business management is NOT your strength. . . “Mental slavery is the worst form of slavery. It gives you the illusion of freedom, makes you trust, love, and defend your oppressor, while making an enemy of those who are trying to free you or open your eyes.” -Fiyah “None are more hopelessly enslaved than those who falsely believe they are free.” -Johann Wolfgang von Goethe “You have been programmed to resist the very person that is here to set you free, from the prison of your Mind... You are not free... everything you are has been manufactured by Minds that have not your best interest. You are imprisoned by beliefs and not reality. Religions are mental programs to imprison your Mind.” -SOL |
AR 15-SPECIALIST
Admit it! We’re Fucked User ID: 79128566 United States 11/15/2021 04:33 PM Report Abusive Post Report Copyright Violation | |
Larry D. Croc
User ID: 70736097 United States 11/15/2021 07:51 PM Report Abusive Post Report Copyright Violation | If this is a major issue for you, and it appears to be just that, simply resign your position. Alternately, "I'm just not comfortable with X so I'll take a pass on that, signing the T&C associated with it, etc." "Socialism only works in two places: Heaven where they don't need it and hell, where they already have it." Ronald Reagan The trouble with our liberal friends is not that they're ignorant; it's just that they know so much that isn't so." Ronald Reagan |
WifeOfHusband
(OP) User ID: 80535261 United States 11/16/2021 08:38 PM Report Abusive Post Report Copyright Violation | when in fact the “employer” has absolutely NO control of any kind over your actions when not doing your voice acting. Quoting: Zovalex Voice acting is not part of my job description. I did not use the employer's equipment, I used my own. They still did not control the manner in which these things were recorded, nor did they control the voice. The only control they had was with scripting, which they would have had control over anyway, as a contractor. Had I recorded the voice using THEIR equipment, at THEIR facility, using THEIR electricity and computers and DAWs, and mixers, and microphones, then I would agree with you. But they did not provide any of that. Every minute of the work that I did was using my own, very expensive, equipment which is owned by a company that I own. It was performed inside a sound-proof building that I built specifically for voice work and other recording needs. They provided none of that. They don't even HAVE the equipment to do all of what I did. Sure, they could have used a cell phone and just slapped it into the pi, but they wanted high quality voice work but didn't want to pay for it. So, you're 100% wrong about your belief that the company was right to only pay me hourly, at my normal rate for other, wholly unrelated work. 100% incorrect. You're so wrong that, using your logic, no company would ever be able to hire a voice acting company because "they'd have no control," which is just nonsense. As for the other classifications, I don't know because I'm not a tax expert, but I know that handing out business cards, as a representative of their company that I'm employed with, which can only be done as an employee, for which I have zero control over, nor can I negotiate the rate of pay, is NOT contract work. Not only did you fail to explain any of that in your original post, but you conceded in your initial argument that you were a W-2 wage-earner and you contested the Payer classifying you as a 1099 contractor. Your post above completely contradicts the arguments you posted in your first diatribe, because now you’re arguing that you should have been classified as a 1099 contractor for ALL of your work performed. You’re clearly a very confused (and emotionally unstable) woman. Stick to doing voice acting, sweet cheeks, because business management is NOT your strength. . . 1) My OP was unrelated to my irritation with the employer claiming to be ignorant, as it relates to tax law and employees also being paid as contractors for work done outside of their normal job function, which is why I didn't add it. I actually added it - just as a general complaint about the smarminess of the situation - but then removed it because the post was WAY too long, so I cut out the irrelevant parts. 2) "Your post above completely contradicts the arguments you posted in your first diatribe, because now you’re arguing that you should have been classified as a 1099 contractor for ALL of your work performed." That is 100% incorrect and I never once argued that I should be paid as a contractor for all of my work. I should be paid as a contractor for my VOICE work, but as an employee for that which I was hired to do. When I applied to the part-time job, I didn't even need a job. Just ran across it and thought it sounded like something fun to do. Once I got in there, and they realized I did voice acting as one of my main sources of income, and had a studio set up, they asked if I would do the voice of their new mascot. I let them know what I would charge - as I would do any client - and they said they didn't know if they could pay me as an employee and a contractor. I knew they could but just went ahead and did it as a favor for it and they just rolled it into my part time hours as an employee, but I did not perform that work at their storefront, nor did I use any of their equipment. I never once stated that they should pay me as a contractor for all the work I do -- only that they should have paid me as a contractor for the voice work. Voice acting is not part of my job description as an employee. 3) "and you contested the Payer classifying you as a 1099 contractor." That is correct, because what they are wanting to pay as contract work is actually commission. You do know what commission is, right? lol Please point to tax code that proves that what they are doing gets filed under the new 1099-MISC. I don't know if you're aware of this but 1099-MISC is different than it was last year. You'd know that if you understood business, which you clearly don't. But thanks for your useless opinion. |
LostReality33
User ID: 43651659 United States 11/18/2021 11:54 PM Report Abusive Post Report Copyright Violation | My thought: I actually LIVE in a 12 Million Dollar Home So LOL HA-HA "I never act without a purpose." -Duke Austerberry "It's a bad time for the world if you're a boy or a girl or maybe something in between, it doesn't matter; we all gotta go green and trust everything the authorities tell us, because they love us and they only want the best for us..." ~Lance Hardcore If you click this thread you can hear Maynard James Keenan of TOOL sing "THE WORLD MUST FEEL THIS SEPTEMBER ELEVEN" 4 months before 9/11 Thread: TOOL The Patient 9/11 REVERSED MUSIC VIDEO "THE WORLD MUST FEEL THIS SEPTEMBER ELEVEN" <---4 MONTHS BEFORE 9/11 I've now got a website up and running exploring this new discovery of the Dark Speech, reversed secrets now revealed NO PERSONAL ADVERTISING to ULTRASONIC REVERSE SPEECH ANALYSIS CHANNEL: [link to www.youtube.com (secure)] Subscribe to DARK SPEECH DECODER CHANNEL: [link to www.youtube.com (secure)] Subscribe to the JOHNNY DARK SPEAK CHANNEL: [link to www.youtube.com (secure)] Get in on The Extreme Reality Puppet Show! [link to www.youtube.com (secure)] "This videocast offers unique and never-before-heard information coming to you direct from ONE EPIC NAME on the INWO scene; David Eager. The Extreme Reality Puppet Show is the FIRST, BEST & ONLY Conspiracy Puppet Show IN THE WORLD! TELL ALL YOUR FRIENDS!" The time is NOW! |