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Not sure what field the original poster is in, but as described doesn't make a ton of sense. Anytime I've ever felt abused at a job, I've gotten up giving two weeks notice just walked out. I've done that a few times in my career, fortunately only a few.
Most people who don't differentiate between High School grads and those with graduate degrees have no idea what they're talking about anyway, or the work is simply drone material that anyone can do to begin with. Which begs the question, what the hell is OP doing there. The job I'm in right now specifically requires a graduate degree, that's a gateway to determine if someone is sufficiently Intrepid to complete the work. And is paid appropriately. They attempt to squeeze every nickel out of us they can like every other company, and when I'm tired of it I will leave.
The only reason I've ever been a 1099 as described is if I'm pulling between 125 and 175 an hour. At some point of angling for 225 an hour, to become a co-equal partner with whatever firm I'm working with together with the client. I don't need anybody to wish me a merry damn Christmas, give me bonuses or other crap like that. In fact in the past anytime they smarted off to me, I found a way to charge them an extra half hour or so thus monetizing their sarcasm.
If the last two bosses have been criminals, I question the kind of roles this person is going for. That sounds like loser behavior in fact. I'm aware within about a buck an hour exactly what I'm worth on the market in different kinds of situations, benefits no benefits 1099 or whatever. That data is out there.
op, it's not clear from your post whether the irs (and other governmental agencies) would consider you a freelancer (i.e. Independent contractor) or an employee. it is not something that your employer can decide based on what they think suits them!! if you do work for them that is directed by them (in terms of specifics of the work required, deadlines, etc.) you may very well be considered an "employee," not a freelancer.
Here's just one relatively recent article that explains the difference, although there are a ton of others as well: when an independent contractor is really an employee - jul. 16, 2015 . (i just googled "company calls me an independent contractor but i think i'm an employee" -- if you put in similar search terms you will get a lot of hits!)
First find a new job/gig, then contact your State bureau of labor to see if they will demand fringe benefits (including the employer's half of SS & Medicare) on your behalf. If not contact the IRS.
Thank you, AnOrdinaryCitizen and 2nccoast for your replies. Even though I understand the boss' desire to make more (I myself have a business degree), I don't understand that cold-hearted attitude. I don't know where this world is headed to, but greed surely spoils it for everybody... but a few. If I was the boss my attitude would be I grow, we all grow. I have had a small business in the past and did my best to keep everybody happy. I have always enjoyed giving.
this might be true for a full time employee, but free lancers are a whole different animal.
If you're indispensable, they might try to hire you, especially after you quit.
I believe free lancers are just contractors who work for an agreed upon rate. You should renegotiate every year or walk.
The company is saving a lot of money by keeping you even if they pay you more than the full timers.
The temporary workers at my company are not permitted to work longer than 12 months due to some labor law. I wonder if that might apply to contractors.
OP - I think you need to be more aggressive and stand up for yourself. Maybe the meek will get their rewards in the afterlife, but in this one they will surely be trampled on. Network to the max, look for other positions, get on LinkedIn, indeed.com, etc. If you have a "very specific area of expertise", you should be able to parlay it into a high-paying gig with full benefits.
What field are you in? I/T, marketing, engineering, etc. If you provide some more details, we can make better-targeted suggestions.
At the last meeting with my boss which was last week I was pretty aggressive. I have never spoken that way to a boss. He was so confused that I brought up the subject for more pay that he looked totally shocked and it took him a while to understand what I was saying. I tried to say it by asking if I will get any evaluation at the end of the year (considering he didn't mention anything until now I thought I should ask). He said what do you mean? I said, well, what about my performance this year, how did I do? He still didn't get it so I had to say it straight in his face. What about a pay raise? Can I get a pay raise? He looked shocked for a moment and said something of the sort "I don't know, what do you think?" And I said considering he had such a good year and if I was the boss I would be gracious to my employees. The meeting went on and on and it was very awkward.
I still feel very uncomfortable to tell him that he can give me more money if he wants to. Well, I don't think he is capable to understand what I am talking about. He all the time presented excuses and made up stuff. I don't have any contract but I work full time. If they want to fire me they can do it anytime. I work with my spouse and right now it is really not the time for us to look for another job. We are expecting a baby and since we have no family support we need to have a job from home to pay our bills and manage all the tasks of parenthood. So that's the main reason we are still sticking with this job. But again it is not nice to have boss like this. People like him have zero knowledge of team management and what it takes to keep a team motivated. So I know I will not get old with this job one way or another.
The reason I said our job is very specific is because it is in the tourism industry of one state promoting all state specific activities. I have been doing this for 15 years and I know all about the locations and activities, therefore I can do a good job marketing and selling them on the company's websites (I do all the website tech work). My spouse is the web content manager. We are both part of their small marketing team.
OP, it's not clear from your post whether the IRS (and other governmental agencies) would consider you a freelancer (i.e. independent contractor) or an employee. It is NOT something that your employer can decide based on what they think SUITS them!! If you do work for them that is directed by them (in terms of specifics of the work required, deadlines, etc.) you may very well be considered an "employee," NOT a freelancer.
Here's just one relatively recent article that explains the difference, although there are a ton of others as well: When an independent contractor is really an employee - Jul. 16, 2015 . (I just googled "company calls me an independent contractor but i think i'm an employee" -- if you put in similar search terms you will get a lot of hits!)
Yes, I'm aware of this issue (have looked into this a couple of years ago). I'm pretty sure that the IRS would consider me an employee. I'm right now paid as a freelancer (company saves money that way). I have been with the company for several years and I know there are several criteria that the IRS uses to determine if you should be considered a freelancer or employee. In my case, I'm "materially dependent" on them because I work for them full-time. I work from home using my own resources, but the work is directed. I have asked my boss to put me on W-2 in the past, but he said no. He said if I moved to his state, he would maybe consider it. But other that saving half of the FICA, there is no other benefit for me. He has some other employees in his company, but they also receive no benefits whatsoever.
Yes, I'm aware of this issue (have looked into this a couple of years ago). I'm pretty sure that the IRS would consider me an employee. I'm right now paid as a freelancer (company saves money that way). I have been with the company for several years and I know there are several criteria that the IRS uses to determine if you should be considered a freelancer or employee. In my case, I'm "materially dependent" on them because I work for them full-time. I work from home using my own resources, but the work is directed. I have asked my boss to put me on W-2 in the past, but he said no. He said if I moved to his state, he would maybe consider it. But other that saving half of the FICA, there is no other benefit for me. He has some other employees in his company, but they also receive no benefits whatsoever.
Consult with a lawyer to make sure the IRS would consider you as an employee. The law is pretty complex and it's not a good idea to do things based on the idea that you probably are.
OP - if you have skills in web design/maintenance, can you look for more gigs on the side? Your current job should not keep you too busy since you have been doing it for 15 years. And you don't have to worry about conflicts of interest since you are not an employee.
If you don't want to quit this job now, at least look for additional projects from other companies. May be one of those will eventually morph into a full-time offer. If you do nothing, you will continue to be exploited (there's no other word) because your employer reaps all the advantages from the current arrangement, while you have none. It's way lopsided.
Some people choose to be an independent contractor because they don't want ties to a specific company and don't want the responsibilities of employees, such as managing other people, writing reviews, etc. We have a guy at my job who has been an independent contractor for the past 8 years.
Typically though, independent contractors get paid a pretty high hourly rate to compensate for the lack of benefits and the lack of permanence of the job. Usually, they have their own corporation or LLC set up, pay their own payroll taxes and estimated taxes, etc. The guy at my company gets a pretty high hourly rate and is quite well off.
I think you need to take a step back and review the whole situation. What is your hourly rate? It should be a good deal more than you would make as a permanent employee, and if it's not, you need to work to get it higher. Find out what your skills are worth on the open market and start networking for a job that will pay and treat you properly. You could continue to be an independent contractor but the hourly rate needs to be higher than a salaried rate for a full time employee. Stop worrying about other people's greed and develop some of your own.
One question to ask is whether or not the contractor holds themselves out to others to perform work in their area of expertise and in fact has performed work for others. If the 'independent contractor' relationship continues for over a year the IRS will assert that an employment relationship exists... that is what bit Microsoft years ago and they had to pay all payroll taxes and fringe benefits to the claimed independent contractors, including stock awards. Here are other factors to consider
1. Do you pay the worker an hourly wage?
Yes: Employee. An employee is typically paid a guaranteed wage per hour or a salary. That arrangement indicates an employer-employee relationship even if the worker also earns a commission, according to the IRS.
No: Independent contractor. To create an independent contractor relationship, you should pay a flat fee after a certain job or task is done, according to the Society for Human Resource Management.
2. Do you pay the worker’s expenses?
Yes: Employee. As an employer, you reimburse an employee for work-related expenses that person incurs to get the job done. The employee is not responsible for covering these expenses for your business.
No: Independent contractor. As an independent business owner, an independent contractor pays his or her own expenses. The IRS especially looks at fixed ongoing costs the contractor has whether or not the person is currently performing work as a strong sign of independent contractor status. If there are costs associated with the work being done for you, an independent contractor typically includes the costs in the contracted fee.
3. Do you have the right to fire the worker?
Yes: Employee. You can fire an employee for no reason as long as you don’t do it to discriminate against the person or to retaliate for, say, reporting a safety violation. If the person has an employment contract with you, you can’t fire them without cause unless the contract says so. Still, that person is an employee.
No: Independent contractor. You can’t fire an independent contractor. That person is self-employed. You should both sign a written contract before any work starts. Then, if either party violates the terms, the other person can terminate the business relationship without facing a possible penalty, such as a breach of contract action.
4. Is your business relationship with the worker ongoing?
Yes: Employee. When you hire a worker with the expectation that the business relationship will go on for an indefinite period of time, the IRS sees that as an intent to create an employer-employee relationship.
No: Independent contractor. An independent contractor, on the other hand, is hired or contracted for a specific project or period.
5. Does the worker do routine tasks for your business or the same work your business does for its customers?
Yes: Employee. For example, your dental practice wants to add a part-time dental hygienist to help with your patient workload. Since the hygienist will be doing work that is integral to your business, that worker will have to be hired as an employee.
No: Independent Contractor. If the person works in a different business than yours or has a specialized skill, for example the worker is a web designer you hire for a website project at your landscape architecture firm, then the person can be classified as an independent contractor.
6. Could the worker lose money from doing the work?
Yes: Independent contractor. As an independent business owner, an independent contractor faces the possibility of losing money. For example, business expenses could be greater than the income from the work. There is also the potential to earn a higher profit for the contractor’s business if the job is managed more efficiently, or to add new clients to offset the expenses.
No: Employee. An employee’s business expenses are covered by the employer. The employee doesn’t face a financial loss because expenses the worker incurred for your business exceed the worker’s wage or salary.
Lastly, it’s important to know that your small business can’t rely on paperwork alone to create an employee or independent contractor relationship.
For example, signing a contract with a worker doesn’t make that person an independent contractor.
Nor does giving the worker at tax time an IRS “Form 1099-MISC, Miscellaneous Income,” which is used for independent contractors, instead of the “Form W2, Wage and Tax Statement” given to employees.:
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