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Subject:Re: Employment Status From:"Huber, Mike" <mrhuber -at- SOFTWARE -dot- ROCKWELL -dot- COM> Date:Tue, 5 May 1998 14:40:42 -0500
Been there, done that - minus the 5 page written contract, but the
effect was the same.
My employer was a floundering shop, dropping rapidly from 6 people to
one. I got a new office at the same time, because we got evicted from
the old one. He was pretty up-front about the whole thing. The good news
was that I didn't get paid very much money before he went completely
broke. And when not getting paid is the GOOD news, well, need I say
more?
Now, the IRS guy told me I could very easily have put the guy in a very,
very bad situation (and saved myself a chunk o' change in the process,
and the IRS guy said I was an idiot not to) because the move was well
outside the lines. But I didn't, because the employer was honest with
me, and I didn't want to burn any bridges. Even though that's one bridge
I'll never willingly cross again.
---
Office:mike -dot- huber -at- software -dot- rockwell -dot- com
Home:nax -at- execpc -dot- com
>-----Original Message-----
>From: DURL [SMTP:durl -at- BUFFNET -dot- NET]
>Sent: Tuesday, May 05, 1998 12:59 PM
>To: TECHWR-L -at- LISTSERV -dot- OKSTATE -dot- EDU
>Subject: Re: Employment Status
>
> 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.
>