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How many here have been the victim of unscrupulous employers, that call/called you a subcontractor / independent contractor, but you are/were an employee in every aspect of your job description?
This isn't anything new, but it has accelerated vastly in the last 20 years and with the healthcare law passed, many employers decided to jump on this bandwagon.
Has anyone here ever heard of an IRS form SS-8?
Employers doing this to skate by under the radar, without paying many many fees and taxes along with having to purchase additional insurance for employees. No unemployment, workmans comp, no additional staff to keep up with the additional accounting for employees. No income tax withheld, State or Federal.
I think I understand part of the 1099 deal in the Insurance/Healthcare reform bill that got tossed in the House yesterday. But it is targeting the wrong area.
Just think if everyone was considered and classified as "self employed"?
How many here have been the victim of unscrupulous employers, that call/called you a subcontractor / independent contractor, but you are/were an employee in every aspect of your job description?
This isn't anything new, but it has accelerated vastly in the last 20 years and with the healthcare law passed, many employers decided to jump on this bandwagon.
Has anyone here ever heard of an IRS form SS-8?
Employers doing this to skate by under the radar, without paying many many fees and taxes along with having to purchase additional insurance for employees. No unemployment, workmans comp, no additional staff to keep up with the additional accounting for employees. No income tax withheld, State or Federal.
I think I understand part of the 1099 deal in the Insurance/Healthcare reform bill that got tossed in the House yesterday. But it is targeting the wrong area.
Just think if everyone was considered and classified as "self employed"?
Just think if you couldn't be "self employed"?
We still have to have comp.
Our state does not require it but, working on HUD jobs does.
Our state does not require it but, working on HUD jobs does.
Something you provide as part of your policy? or do the self employed have to independently have their own?
Remember, you are not licensed to sell insurance, if your providing it to your misclassified employees, your calling independent.
That is one way to get caught, by an insurance audit.
Claiming more than you employ.
How many here have been the victim of unscrupulous employers, that call/called you a subcontractor / independent contractor, but you are/were an employee in every aspect of your job description?
My previous employer (one of the largest corporations in America) adopted a policy of hiring freeze in 2002. For IT, one office was opened in India, followed by another a few years later. The strength of those two offices, as of two years ago, stood at 5000 employees.
That came at an expense of a few thousand laid off here in the USA. Out of thirty people in my organization here, only one remains. Corporate policies on sensitive data were relaxed a little to allow employees in India to be able to do the job that otherwise required someone in America to do.
But, there has always been a need for a few people here and there. What to do with hiring freeze implemented in 2002? Welcome... contractors. One of my ex-colleagues just got re-hired as a contractor, doing pretty much the same thing he did for years. Now he is on contract for two. So, what made the company free hiring in the USA and render it only to contracting? Tax cuts didn't help. Health care reform wasn't even in the radar. Wait... cheap labor was.
Ultimately, businesses aren't interested in who you are, or what you're to be used for. You're only as good as what you can deliver to the bottom line. If someone can do it for a fraction of the cost, well, there's always the prospect of finding highly qualified people in countries like India. You're not something to worry about.
If that didn't fly I would starve. i got crushed bad in 87, and with the pre -existing laws with out this there would be no work for me.
No one will hire anyone with a seriouse medical injury any more for the pre-existing conditions law.
I had no choice and took working and the risks it has into my own hands so I can earn. Recently i broke the bone in a finger which isn't 4 weeks old yet and am working anyway. No docs no Ins, no nuthing. That finger is tied with a pony tail tie to the next finger so I can work.
No one else is going to hire me.
Sure I could turn in the guy i work for and then he won't hire me either. The goobermint and their lawyers aren't going to give me anything but a problem, just like last time when I was hurt on the job and needed back surgery the lawyers and Ins cheated me of.
Now a couple years passed since 1987, and i don't want to go back to that life anymore. I am better off left to my own.
I don't earn a great deal of money but I sure do have my time.
I don't need any bean counters either, makin my life 'better'.
But being misclassified as an independent contractor doesn't always work against that individual. For example write off for health insurance helps make it more affordable; write off for SEP/pension also helps lower your tax bill. The con is having to pay the SS tax twice.
I think the worst possible scenario for an individual is per diem no benefits. I'd rather be considered an independent contractor than that.
Independant "contractors" are just a way for corporations to avoid responsibility for their employees welfare by providing health insurance and other benefits. It saves the corporation money and cheats the employee. So what else is new? Cheating the economically powerless is the American Way.
Independant "contractors" are just a way for corporations to avoid responsibility for their employees welfare by providing health insurance and other benefits. It saves the corporation money and cheats the employee. So what else is new? Cheating the economically powerless is the American Way.
Typically an independent contractor will be compensated at a higher (gross) rate than an employee. The responsibility to pay and/or fund federal/state/local unemployment, medicare, ss, income, etc taxes plus insurance/retirement/etc benefits then falls upon the contractor - this is why the rate should be higher. It can actually have a lot of advantages for both the employer and the contractor if executed correctly. Personally, I prefer this arrangement for my compensation as it provides me a lot of control and flexibility, but it's probably not for everyone and I make sure I'm getting the appropriate rate.
If employees are suddenly switched to independent contractor status without a corresponding increase in pay, then this is a problem.
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