Contract To Cheat: Employers Cheating the System... Cheating on taxes, cheating on benefits (employment, illegal)

[Skydive Outlaw]

Originally Posted by Driller1

There is a good chance the 1099 contractors file......but, do not owe.

I get 25/30 or, so 1099's each year.

I file but, do not owe.

We do not work all year.......and have other write offs.

Wow. You don't owe any Social Security taxes on your 1099 income?

Cool story.

[Toyman at Jewel Lake]

Originally Posted by James420

Being thousands of them are here illegally, paying taxes is the least of their concern. The ones that aren't know better, and they'll be only ones to pay.

The fact that criminals are here in this country in the first place, and our federal government refuses to do their job (specifically rounding them up and deporting them) is a far bigger issue than any "contract employee" issue.

[petch751]

Originally Posted by DRob4JC

Contract to Cheat

Across the country, roughly 10 million construction workers spend each day in a dangerous and fickle industry. They hang drywall, lay carpet, shingle roofs. Yet in the eyes of their bosses, they aren't employees due the benefits the government requires.

Employers treat many of these laborers as independent contractors. It's a tactic that costs taxpayers billions of dollars each year. Yet when it comes to public projects, government regulators have done nearly nothing about it, even when the proof is easy to get.

The workers don't have protections. The companies don't withhold taxes. The regulators don't seem to care.


It's called misclassification - where workers are considered as independent contractors. Therefore, a ton of tax revenue is never paid for work that is done and payment received. Private companies do this. The federal government does this.

Companies that received Stimulus money were allowed to get away with this as regulators looked the other way.

How does it work?

The companies declare on a routine form that the hourly wage earners working for them aren’t employees, as laws and several federal regulations require them to be, but rather are independent subcontractors. Those companies then don’t withhold income tax or file payroll taxes. They don’t pay unemployment tax. And they aren’t obliged to provide workers’ compensation.

Pretty simple.

I'm sure the illegals just make it easier to pull this off.

Sounds like we need to tighten this up BEFORE raising any taxes.

And while we are at it we need to do something about people who classify themselves as unemployed but work under the table and collect welfare.

[petch751]

Originally Posted by Spaten_Drinker

I don't see a problem here. It is the responsibility of the EMPLOYEE to pay their own taxes since they are being paid GROSS WAGES. The tax evaders are the employees who cash their paychecks and then don't declare the income on their 1040.

What OP wants is an employer who guarantees him work and be the tax collector. He doesn't have a clue about what's involved or how expensive it is to employ people (money above and beyond his pay). Government sure does discourage hiring people as a w2 worker. Employee's have become their own worst enemy too. He wants to put his time in and that's it. Then has the nerve to complain about "the employer"

If people were smart they would understand the benefits of being an independent contractor. BUT, it's up to YOU to get the work instead of depending on someone else. That might be too much work for though.

[mmmjv]

Originally Posted by DRob4JC

Contract to Cheat

Across the country, roughly 10 million construction workers spend each day in a dangerous and fickle industry. They hang drywall, lay carpet, shingle roofs. Yet in the eyes of their bosses, they aren't employees due the benefits the government requires.

Employers treat many of these laborers as independent contractors. It's a tactic that costs taxpayers billions of dollars each year. Yet when it comes to public projects, government regulators have done nearly nothing about it, even when the proof is easy to get.

The workers don't have protections. The companies don't withhold taxes. The regulators don't seem to care.


It's called misclassification - where workers are considered as independent contractors. Therefore, a ton of tax revenue is never paid for work that is done and payment received. Private companies do this. The federal government does this.

Companies that received Stimulus money were allowed to get away with this as regulators looked the other way.

How does it work?

The companies declare on a routine form that the hourly wage earners working for them aren’t employees, as laws and several federal regulations require them to be, but rather are independent subcontractors. Those companies then don’t withhold income tax or file payroll taxes. They don’t pay unemployment tax. And they aren’t obliged to provide workers’ compensation.

Pretty simple.

I'm sure the illegals just make it easier to pull this off.

Sounds like we need to tighten this up BEFORE raising any taxes.

There's something seriously wrong there.

There's something I don't understand here. Aren't hourly employees usually required to report to work by a specific hour? And aren't independent contractors more independent? As the name implies?

[mmmjv]

Originally Posted by petch751

What OP wants is an employer who guarantees him work and be the tax collector. He doesn't have a clue about what's involved or how expensive it is to employ people (money above and beyond his pay). Government sure does discourage hiring people as a w2 worker. Employee's have become their own worst enemy too. He wants to put his time in and that's it. Then has the nerve to complain about "the employer"

If people were smart they would understand the benefits of being an independent contractor. BUT, it's up to YOU to get the work instead of depending on someone else. That might be too much work for though.

Employing people doesn't cost anything. Quite the opposite. When a corporation employs people they make money, it doesn't cost them money

[Tall Traveler]

The Democrats have been racists from the 1800's till now. They need to address their racism or continue to lose power as the Republicans now have more elected officials than any time since 1928

[Driller1]

Originally Posted by Skydive Outlaw

Wow. You don't owe any Social Security taxes on your 1099 income?

Cool story.

No.........I never show a profit.

So "0" tax is owed.

[Driller1]

Self-employed people file as a business.........that gives them a choice to write off all costs.

For me.......getting to "0" is easy.

We had our well rig up dated and a diesel motor majored.

Just those to bills was over $40,000.

It is a write off.

[petch751]

I also find that people who work as an independent contractors, who are smart enough to know that they are a business also do better work. To keep that account they must do the work as apposed to people who work as an employee, some who still don't get that they are not owed a job.

The IC is self employed and also must act as a tax collector, reporting and paying the government rather than depending on the employee to do it.