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Subject:Re: Employment Status From:DURL <durl -at- BUFFNET -dot- NET> Date:Tue, 5 May 1998 13:58:39 -0400
Wow.
You haven't been fired, you've just been asked to enable your
employer to pass on his employer expenses to you. The good news is he
hopes to decrease your wage with each project, which means the payroll
taxes will be less.
It's illegal. It's illegal for an employer to avoid paying social
security & medicare taxes. Your employer is also required by law to
withhold your federal income tax on wages earned.
The IRS has a "20
question" list that it uses to determine whether or not you're a statutory
employee, regardless of documents like the one he wants you to sign.
Efforts to get the IRS to lighten up failed, the last time I knew anything
about it.
If your company is resorting to means like this, they may be
maxing out their line of credit. Apart from being screwed via the payroll
tax, you may also find they won't be able to pay your invoices.
Mary
Mary Durlak Erie Documentation Inc.
East Aurora, New York (near Buffalo)
durl -at- buffnet -dot- net
On Tue, 5 May 1998, JDigi88 wrote:
> I am interested in your interpretation of the following situtation.
>
> You have been employed by a small company; you receive a paycheck with taxes
> withheld, and you receive a W-2.
>
> You are now given a 5 page contract to sign titled, Contracting Agreement,
> which refers to you as a contractor, delineates contracting services, and has
> a Statement of Work that will be completed on a project by project basis at a
> pay to be negotiated on a project by project basis. You are informed that you
> will not be given any "hours" until you sign the contract.
>
> My interpretation is: you have been fired, but they are offering to hire you
> back as a contractor.
>
> Do you agree? Disagree? How would you interpret this?
>
> I appreciate any comments either to the list or in private to Jdigi88 -at- aol -dot- com -dot-
> I would be happy to summarize responses for the list, if anyone is interested.
> Thanks for your opinions.
>
> Jackie DiGiovanni
> Technical Communications
>
>
>
>