| Author |
Message |
tobe
Guest
|
 Posted:
Sun Oct 16, 2005 8:00 am Post subject:
1099 |
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My 21 year old son just got a job with a person who sells a certain
type of item on the internet out of his home, and employs about 4
people, mostly high school students, all part-time. Since my son
is not very financially savvy, I asked him how he was going to get
paid, and whether there was any withholding or not. I figured I
knew the answer when it turned out he did not need to fill out a
W-4 (or ANY paperwork, such as an I-9). I asked to see his first
paycheck when it came.
Well, It came yesterday, and it is only a check. Furthermore, the
employer had my son sign a paper saying he did "computer work" for
X hours at $Y per hour. Upon some simple questioning by my son,
the employer will issue a 1099 form at the end of the year.
My son is CLEARLY not a 1099 employee by the IRS rules. Furthermore,
he did NOT do any computer work for this guy. He sorted items, and
filled and packed orders.
After some education and downloading some IRS stuff, my son is now
pretty well informed. Monday, he will take the IRS stuff to the
employer and politely confront him. However, it is pretty clear
to me that the employer knows full well he is not following the
rules, and I think my son will be out of a job again.
Since the employer had my son (innocently and ignorantly) sign an
untruthful 'invoice', I think this may constitute fraud by the
employer. Is there somewhere I can report this guy to the IRS?
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >>
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Missy
Guest
|
| Posted:
Mon Oct 17, 2005 8:00 am Post subject:
Re: 1099 |
|
|
Call (800) 829-1040 and tell your story to them.
Missy Doyle |
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effi
Guest
|
| Posted:
Tue Oct 18, 2005 1:53 pm Post subject:
Re: 1099 |
|
|
"tobe" <ybotkaSPM@cinci.rr.com> wrote:
| Quote: | My 21 year old son just got a job with a person who sells a certain
type of item on the internet out of his home, and employs about 4
people, mostly high school students, all part-time. Since my son
is not very financially savvy, I asked him how he was going to get
paid, and whether there was any withholding or not. I figured I
knew the answer when it turned out he did not need to fill out a
W-4 (or ANY paperwork, such as an I-9). I asked to see his first
paycheck when it came.
Well, It came yesterday, and it is only a check. Furthermore, the
employer had my son sign a paper saying he did "computer work" for
X hours at $Y per hour. Upon some simple questioning by my son,
the employer will issue a 1099 form at the end of the year.
My son is CLEARLY not a 1099 employee by the IRS rules. Furthermore,
he did NOT do any computer work for this guy. He sorted items, and
filled and packed orders.
After some education and downloading some IRS stuff, my son is now
pretty well informed. Monday, he will take the IRS stuff to the
employer and politely confront him. However, it is pretty clear
to me that the employer knows full well he is not following the
rules, and I think my son will be out of a job again.
Since the employer had my son (innocently and ignorantly) sign an
untruthful 'invoice', I think this may constitute fraud by the
employer. Is there somewhere I can report this guy to the IRS?
|
you have not made a case for an employment contract
existing, nor an employment relationship existing, as to
your son and the person he works for to the contrary, the
actions of the parties, per you, seems to indicate a
contract/1099 relationship you should have a professional
assess your facts so you'll know for sure otherwise you're
just guessing
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >>
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Steve Pope
Guest
|
| Posted:
Tue Oct 18, 2005 1:53 pm Post subject:
Re: 1099 |
|
|
tobe <ybotkaSPM@cinci.rr.com> wrote:
| Quote: | My 21 year old son just got a job with a person who sells a certain
type of item on the internet out of his home, and employs about 4
people, mostly high school students, all part-time.
Well, It came yesterday, and it is only a check. Furthermore, the
employer had my son sign a paper saying he did "computer work" for
X hours at $Y per hour. Upon some simple questioning by my son,
the employer will issue a 1099 form at the end of the year.
My son is CLEARLY not a 1099 employee by the IRS rules. Furthermore,
he did NOT do any computer work for this guy. He sorted items, and
filled and packed orders.
After some education and downloading some IRS stuff, my son is now
pretty well informed. Monday, he will take the IRS stuff to the
employer and politely confront him. However, it is pretty clear
to me that the employer knows full well he is not following the
rules, and I think my son will be out of a job again.
Since the employer had my son (innocently and ignorantly) sign an
untruthful 'invoice', I think this may constitute fraud by the
employer. Is there somewhere I can report this guy to the IRS?
|
I think your idea of the "untruthful invoice" being "fraud"
is quite weak. If the business is selling stuff over the
internet, it is loosely speaking a "computer business" and
all of the five workers in the business are, loosely
speaking, collectively doing "computer work". This would
only become fraud if an examining agent wanted more details
and false details were reported.
Look into filing form SS-8 if you want to press the issue of
employee status.
If your son wants to keep his job a clever approach would be
to look into payroll software and/or cheap local payroll
services and present the businessowner with the fact that it
would not be difficult to cut paychecks instead. Maybe even
offer to do the payroll -- it's not that difficult.
Steve
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
| Back to top |
|
|
effi
Guest
|
| Posted:
Thu Oct 20, 2005 8:00 am Post subject:
Re: 1099 |
|
|
"Steve Pope" <spope33@speedymail.org> wrote:
| Quote: | tobe <ybotkaSPM@cinci.rr.com> wrote:
My 21 year old son just got a job with a person who sells a certain
type of item on the internet out of his home, and employs about 4
people, mostly high school students, all part-time.
Well, It came yesterday, and it is only a check. Furthermore, the
employer had my son sign a paper saying he did "computer work" for
X hours at $Y per hour. Upon some simple questioning by my son,
the employer will issue a 1099 form at the end of the year.
My son is CLEARLY not a 1099 employee by the IRS rules. Furthermore,
he did NOT do any computer work for this guy. He sorted items, and
filled and packed orders.
After some education and downloading some IRS stuff, my son is now
pretty well informed. Monday, he will take the IRS stuff to the
employer and politely confront him. However, it is pretty clear
to me that the employer knows full well he is not following the
rules, and I think my son will be out of a job again.
Since the employer had my son (innocently and ignorantly) sign an
untruthful 'invoice', I think this may constitute fraud by the
employer. Is there somewhere I can report this guy to the IRS?
I think your idea of the "untruthful invoice" being "fraud"
is quite weak. If the business is selling stuff over the
internet, it is loosely speaking a "computer business" and
all of the five workers in the business are, loosely
speaking, collectively doing "computer work". This would
only become fraud if an examining agent wanted more details
and false details were reported.
Look into filing form SS-8 if you want to press the issue of
employee status.
If your son wants to keep his job a clever approach would be
to look into payroll software and/or cheap local payroll
services and present the businessowner with the fact that it
would not be difficult to cut paychecks instead. Maybe even
offer to do the payroll -- it's not that difficult.
|
"doing the payroll" could result in one being a "responsible
person" per irc section 6672
so "doing the payroll" could be very risky business
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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