What should I do if my employer suddenly wants to change my status from a W2 employee to a 1099 independent contractor, and I'm currently pregnant?
Answered on September 19,2023
This is a wage theft scam called misclassification. This is because they are trying to misclassify you as an IC rather than an employee. The main wage theft happening here is that ICs pay 100% of payroll taxes (rather than 50%) but ICs are also not eligible for other things like overtime pay or unemployment (due to not being an employee).
Your employer cannot unilaterally shift you to being an IC without a SUBSTANTIAL change in your job duties. The test of whether you are an IC or an employee is set by FLSA and the most important factor is the right of control. If your employer maintains most of the control then you are likely an employee. The DOL will have more information about this which you can find at www.dol.gov.
If this has happened to you or any fellow employees at your workplace you must file reports with your state and federal DOLs.
Related Questions
-
Robert James
20+ years of experience in IRS matters .Has anyone had experience with filing an amended return via fileyourtaxes.com that includes an additional amount due, and if so, did the platform process the payment to the IRS directly? I'm confused because the filing status indicates the return was accepted, yet the IRS website suggests sending hard copies of amendments by mail and waiting for manual processing. Should I be concerned about the payment method and timing?
You can select Electronic Funds Withdrawal (EFW) when you file a tax return; you would have had to select ...
1 0 2 -
Robert James
20+ years of experience in IRS matters .Has anyone experienced a situation where an employer initially provided an incomplete W-2, later issued a corrected one (W-2C), triggering an IRS tax examination (CP05A)? Despite submitting documents for verification, the IRS couldn't confirm, resulting in owing $800 instead of a $2,300 refund. What steps should I take to resolve this?
If you are able, pay the $800. That way you stop any penalties & interest if you lose. If ...
1 0 6 -
Robert James
20+ years of experience in IRS matters .How can I obtain a copy of my W-2 from a previous employer who has not provided it, especially since I missed the initial May 21st deadline to request it from the IRS, and I'm struggling to reach a human representative at the IRS for assistance?
Try the IRS Wage and Income transcript online. If you don't see anything there, employers file their copies of W-2s ...
1 0 7 -
Robert James
20+ years of experience in IRS matters .I'm in a tough financial situation with an IRS debt of around $2000 due in October, and I'm living paycheck to paycheck with existing college debt. The IRS help programs have certain criteria I don't meet. What are my options for handling this debt without putting it all on my credit card, considering I want to avoid payday loans?
If you signed up for the six-month Short-term or Full pay option, you can get a Long-term installment agreement ...
1 0 2 -
Robert James
20+ years of experience in IRS matters .What steps can I take to resolve the issue of the IRS claiming I owe them $5k due to an amended tax return for 2020 that incorrectly shows I made $10k more than I actually did, and my attempts to get the correct W-2 from my employer have been unsuccessful, causing delays in my tax return for this year and financial hardship?
See if you can get help from a Low Income Taxpayer Clinic: Low Income Taxpayer Clinics (LITC) It sounds like the ...
1 0 0 -
Robert James
20+ years of experience in IRS matters .What should I do next when the IRS initially informed me to wait up to 9 weeks after verifying my information in person, but now they are saying it's actually 180 days from verification and that this timeframe has restarted because I called them to inquire about my tax return status?
You will probably wait more than 180 days, and this would have happened whether you called or not. The ...
1 0 42 -
Robert James
20+ years of experience in IRS matters .As a Canadian citizen living and working in the US, I recently changed my address with the IRS and CRA. I have savings accounts in both countries and some missing tax documents from past years. What should I do next to make sure I'm in good standing with both tax authorities, and where can I find simple guidance to help me through this process?
The easy solution is to hire a CPA or Enrolled Agent to help you with your US taxes. They ...
1 0 0 -
Robert James
20+ years of experience in IRS matters .How can I address my outstanding IRS tax issues for the years 2020 and 2022, considering I had a regular job with taxes withheld in 2020, collected unemployment, and did gig work (DoorDash) in 2022? I'm feeling overwhelmed and don't even have a clear record of the jobs I worked during those years. What steps should I take to start sorting out my tax situation, especially when I have limited knowledge about taxes?
You can probably get help from a free tax preparation program, but you'll need to get your Wage and Income ...
1 0 3 -
Robert James
20+ years of experience in IRS matters .What should I do if I received a 1099 for $140k in 2022, kept around $65k after paying others via Zelle, and received another 1099 for $71k in 2023 with another one expected this year? I haven't filed my IRS taxes due to overwhelming fear and lack of funds for payment, and I'm only 23 and never had to file taxes before. I have about $10k saved but need it for the winter when work slows down.
First, file your return. You will save money on penalties. Not filing will just cause more issues and make ...
1 0 2 -
Robert James
20+ years of experience in IRS matters .I worked off the books in a bar before I had my green card and didn't fill out a W9 or file a 1099. The bar contacted me about incorrect W9 information after I'd paid my taxes. Should I ignore it, or should I contact the IRS to declare the income? What's the best course of action?
The general rule is all income in the US is taxable unless specifically excluded by law. Even when you ...
1 0 1 -
Robert James
20+ years of experience in IRS matters .What affordable online services can I use to file my past two years' tax returns as an NJ resident in the military stationed overseas, considering I have all my W2s digitally on hand? Alternatively, should I consider contacting a CPA or tax service from my state, despite potential costs due to long-distance communication, as I need to file these returns for FAFSA?
You can still claim a refund for 2020 - 2022; the 2020 return has to be filed by May ...
1 0 0 -
Robert James
20+ years of experience in IRS matters .How can I file my taxes in California without providing my estranged parents' names and social security numbers, as required by Free Tax USA, considering I have income from 2 W-2s and a 1099-NEC, and I'm looking for a cost-effective solution, given that I have an extension until October to file?
Do you have a lot of grants to pay for school? It sounds like FreeTaxUSA thinks you are subject ...
1 0 1 -
Robert James
20+ years of experience in IRS matters .What steps should I take if I didn't file my taxes as a college student due to difficulties obtaining my W2 forms from my previous employers, who are now unresponsive to my attempts to contact them?
If you can get your IRS Wage and Income transcript, you can use that to file your tax return. ...
1 0 1