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Does anyone know if worker status affects the taxes we pay at the state level? I was determined by the IRS to be a de facto employee (not IC) and they are currently processing all my paperwork and i should be receiving some credit/refund back.
I don't know how this works at the state level though (if it does). I'm in NY, so does anyone know if I would also have money coming back to me from the state because of this?
I called New York State tax office about it and they seem pretty clueless about this as well.
It can. If you file as an IC you can have all sorts of deductions like vehicle millage and home office that reduce your state taxable income. As a W-2 you don't get as many deductions.
With all that is going on with the IRS, an acknowledgement may take 6 months, and a decision another 18. You may be able to accelerate the process by contacting a Taxpayer Advocate through the IRS. This helped me in moving it along, and the result, as an employee was in my favor. It basically boils down to one important criteria: Who does the customer pay? If you are not getting direct payment from the customer receiving the service (i.e. a home owner who is having the work done ) then you are more than likely an employee. Another basic principle is: Does the employer determine HOW MUCH and HOW OFTEN you are paid. If the answer is yes to both, then you are an employee.
Do you still have that number for the ss-8 department? I have a wrong number for the department and it's even listed wrong under the IRS website. Anyway, I just want to talk to someone over there who can give me some actual answers. Thanks!
Do you still have that number for the ss-8 department? I have a wrong number for the department and it's even listed wrong under the IRS website. Anyway, I just want to talk to someone over there who can give me some actual answers. Thanks!
The phone number is 631-654-6025 but you need luck, because when I call the voice mailbox is full. I filed in Nov.2011, got 3 letters back, telling me the are busy and it will take another 180 days. Twice I got a call from someone at IRS, but he had no knowledge about my case. The last one said it was inexcusable that it would take so long. Good luck with your case and let us know how you end up.
One common reason employers classify workers as IC rather than employee is to avoid paying the worker overtime premiums. If you were classified as an IC and worked 40+ hours in a week without getting paid a premium for the overtime hours, you should consult with an attorney. Lawyers who practice in these areas LOVE these kinds of cases, and will likely be happy to talk with you for little or no money up front. The post above about doing satellite installations is a classic example of what I am talking about.
The phone number is 631-654-6025 but you need luck, because when I call the voice mailbox is full. I filed in Nov.2011, got 3 letters back, telling me the are busy and it will take another 180 days. Twice I got a call from someone at IRS, but he had no knowledge about my case. The last one said it was inexcusable that it would take so long. Good luck with your case and let us know how you end up.
Today 5-30-2013 I got my IRS determination, after contacting about 4 weeks ago a IRS Advocate at the IRS office in my County. I got there number from the IRS customer service. Result: I was an employee.
Congratulations! I would definitely recommend starting with your state's labor department. Going after non-compliant employers is a good way for states to make up for lost revenue without raising taxes, so many states have lots of resources dedicated to weeding out those employers.
No one should be compliant with the IRS.
The IRS is a slave-driving, dictatorial, tyrant that needs to be disobeyed constantly to strip them of their unlimited power.
It can. If you file as an IC you can have all sorts of deductions like vehicle millage and home office that reduce your state taxable income. As a W-2 you don't get as many deductions.
Wow, vehical mileage?
Why not have the state pay for your lunch too?
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Ss8
