overpayment to contractor (how much, employment, taxes)

[yogaman]

Here's the situation:

I have been working for someone as a subcontractor although I was not working for anyone else. He just wrote me a check without taking out taxes.

I worked over a year for this person in North Carolina.

I wrote down my times and placed in a spreadsheet.
He paid me different rates for different activities all of which I recorded times in the spreadsheet.

He invoiced his customers and paid me irregularly as he was paid. He never had extra in an account so it was a hand to mouth situation.

I finally had enough and took regular W2 employment with another company.

After I left, he comes back and claims he overpaid me.

It is significant to me and I don't have it.

Since the payments were based on the task, it was way too confusing for me to keep up with and he was a friend so I repeatedly let him know that I was trusting him to keep things straight.

He obviously did not.

I never signed anything so there is no documented agreements between me and him.

I was constantly trying to get money from him and my bills were late not to mention that he was a verbally abusive person. Another reason for parting company.

He wouldn't even take the time to issue me a 1099 so I had to file my taxes without the form.

For tax purposes, I was a sole proprietor.

I have no way to verify his claim except by his records and I don't have the time to sift through it all since I am a full time student and work full time as well.

that's not my responsibility.

Can anyone point me in the right direction to get advice for this?

The amount claimed that I owe is just under $2K.

Thank you

[arbyunc]

Originally Posted by yogaman

I never signed anything so there is no documented agreements between me and him.

This would make it very difficult for him to successfully sue you. You could claim that he agreed to pay you whatever he paid you. Your word against his.

You should learn an important lesson from this, though--never, EVER work under any sort of contract unless it's written, and clearly explains what is expected of you and how much you'll be paid.

[MrRational]

Originally Posted by yogaman

I have been working for someone as a subcontractor
He wouldn't even take the time to issue me a 1099

He just wrote me a check without taking out taxes.
After I left, he comes back and claims he overpaid me.

Can anyone point me in the right direction to get advice for this?

I'd be making a stink about the 1099 issue...
as to the alleged overpayment? That's his tough luck.

[yogaman]

Originally Posted by arbyunc

This would make it very difficult for him to successfully sue you. You could claim that he agreed to pay you whatever he paid you. Your word against his.

You should learn an important lesson from this, though--never, EVER work under any sort of contract unless it's written, and clearly explains what is expected of you and how much you'll be paid.

Yep. It has been a learning experience on multiple levels. And I will never go into something again without clear written expectation and I will never accept an arrangement where I am not getting paid as a W2 employee.

Thanks for your response.

I am looking to find out if he has a legal leg to stand on.

[yogaman]

Originally Posted by MrRational

I'd be making a stink about the 1099 issue...
as to the alleged overpayment? That's his tough luck.

I already filed my taxes for last year and just figured out what was paid and claimed that. This year will present a different challenge because the guy is a really bad business person.