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Old 03-20-2013, 02:00 AM
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JCLawn and more JCLawn and more is offline
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Join Date: Sep 2009
Location: MI
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Its look a few posts up. Its been answered twice. 13.3 percent more.
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Old 03-20-2013, 08:34 AM
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PROCUT1 PROCUT1 is offline
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Location: TN
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Your employer is playing in a game that years ago you were able to get away with. It was very common. hats not the case anymore. 1099's are for businesses. There are some jobs that you can legally be a 1099 independent contractor but this isn't one of them. He is more at risk than you. Not only does the govt do audits, the insurance companies do as well. I learned this the hard way and wrote about it years ago on here. I had a cpa and no idea i was doing anything wrong. Until i got an insurance audit and a bill for $25,000. Then a state audit and a bill for back taxes that i am still paying now, years after i closed the business. Yes. Some still get away with it....for now...but it wont last forever.
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Old 03-20-2013, 02:20 PM
britsteroni britsteroni is offline
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Join Date: Feb 2007
Location: Missouri
Posts: 334
Originally Posted by jermana232 View Post
Thanks for all the replies. Does anyone have an estimate of the difference I'll pay in taxes at $11/hr as a 1099 (without any deductions) vs w2?
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First of all, take the time to go back and re-read Roger's post above. It is spot on. This is not some sort of game or joke. Your state will be after your "employer" for unemployment taxes and the IRS takes the misclassification of employees very seriously.

From everything you've described, you are not a subcontractor. It is as simple as that. Again, follow Roger's advice and find a new job. It isn't that difficult. If you are skilled as a mowing operator, I'm sure you can find another job as a W-2 employee for a legit lawn care operator for $11/hr.

Now, if you insist on continuing at your own risk, you will pay the entire portion of the Social Security and Medicare Taxes. That equals 15.3% (some people are saying 13.3%, but that is incorrect. The law reverted back to 15.3% in January of 2013.

So, assuming you make $11/hr and work 1500 hours this year as a contractor, here is what you'll be paying:

As a "contractor" = $16,500 x .153 = $2,524 in payroll taxes.

As an employee = $16,500 x .0765 = $1,262 in payroll taxes.

So you are losing out on $1,262 in extra tax owed b/c your "boss" is not playing by the rules.

Also, this does not take into account federal and state income taxes.

There are some deductions you would be entitled to, but they won't come close to making up the $1,262.

Again, find another job. It is in your best interest.
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Old 03-20-2013, 02:28 PM
PaperCutter PaperCutter is offline
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Join Date: Sep 2006
Location: Northern VA
Posts: 1,848
Here's a tip, coming from someone who has worked a LOT of jobs in the landscape and construction industries for both honest and shady bosses: the boos who's willing to play games with the IRS and the labor board is the one most likely to play games with paying you what you're owed for the hours you work.
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Old 03-20-2013, 09:39 PM
agrostis agrostis is offline
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Join Date: Nov 2009
Location: Winston-Salem NC
Posts: 2,098
I don't know about your state, but in NC, as a employee, you can plan on paying out 28% anually of all the money you make for federal and state tax's.
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