Am I in danger by signing this contract(1099)?

[Rememberjustice]

I wouldn't give up right this minute...take the next step and communicate your concerns to him. See how he responds and THEN make your decision.

Ok, I am just articulating my concerns and putting them together in an email. I will let you know how it goes.

 

[Rememberjustice]

The way the contract is written, it could be construed as $11 per hour from the moment he leaves his door until the moment he returns home. I'm just sayin'

So I was debating on how to word my email to my employer expressing my concerns. He sends me a text around 2:30pm asking if I got the contract. I reply yes, I'm just reviewing it. Then an hour later the employer sent me a text to call him. This seemed pretty strange and out of the blue. I immediately call him and he started off saying he wants me to start next week, we would go on 2 jobs together. I told him I didn't think I should be classified as an independent contractor and I would prefer to fill out a W-4 instead of a W-9 if possible. He seemed to stutter and then said he would have to "ask his accountant". He then said that because I would barely get part time hours he doesn't think I can be a W-2 employee but after 3 months probation he said he could try and ensure me more hours and change me from 1099 to W-4. This seems like a lie. I then brought up another concern about not being reimbursed for gas because this will be a huge expense that will ultimately have me taking home way less than the $11.00/hour we agreed upon. I have to use my own car to drive to jobs and also pick/drop off client's property. He then told me that the .53 cents per mile will more than cover gas, which is false. He then said to email him my shirt size so he can get me uniforms. I said I am going to think it over and I'll get back to him. This just doesn't seem right. Do you have any opinions?

 

[Zigner]

So I was debating on how to word my email to my employer expressing my concerns. He sends me a text around 2:30pm asking if I got the contract. I reply yes, I'm just reviewing it. Then an hour later the employer sent me a text to call him. This seemed pretty strange and out of the blue. I immediately call him and he started off saying he wants me to start next week, we would go on 2 jobs together. I told him I didn't think I should be classified as an independent contractor and I would prefer to fill out a W-4 instead of a W-9 if possible. He seemed to stutter and then said he would have to "ask his accountant". He then said that because I would barely get part time hours he doesn't think I can be a W-2 employee but after 3 months probation he said he could try and ensure me more hours and change me from 1099 to W-4. This seems like a lie. I then brought up another concern about not being reimbursed for gas because this will be a huge expense that will ultimately have me taking home way less than the $11.00/hour we agreed upon. I have to use my own car to drive to jobs and also pick/drop off client's property. He then told me that the .53 cents per mile will more than cover gas, which is false. He then said to email him my shirt size so he can get me uniforms. I said I am going to think it over and I'll get back to him. This just doesn't seem right. Do you have any opinions?

53¢ per mile DOES more than cover gas unless you drive a huge gas-hog. My secondary car (my "gas-hog") get's about 18mpg. That's $9.54 per gallon I'd get at 53¢ per mile. Even if you cut it in half (to account for the return trip), it's still $4.77 per gallon at that rate.

But, on the hours, he's wrong. The numbers of hours doesn't determine your classification as an employee.

 

[LdiJ]

So I was debating on how to word my email to my employer expressing my concerns. He sends me a text around 2:30pm asking if I got the contract. I reply yes, I'm just reviewing it. Then an hour later the employer sent me a text to call him. This seemed pretty strange and out of the blue. I immediately call him and he started off saying he wants me to start next week, we would go on 2 jobs together. I told him I didn't think I should be classified as an independent contractor and I would prefer to fill out a W-4 instead of a W-9 if possible. He seemed to stutter and then said he would have to "ask his accountant". He then said that because I would barely get part time hours he doesn't think I can be a W-2 employee but after 3 months probation he said he could try and ensure me more hours and change me from 1099 to W-4. This seems like a lie. I then brought up another concern about not being reimbursed for gas because this will be a huge expense that will ultimately have me taking home way less than the $11.00/hour we agreed upon. I have to use my own car to drive to jobs and also pick/drop off client's property. He then told me that the .53 cents per mile will more than cover gas, which is false. He then said to email him my shirt size so he can get me uniforms. I said I am going to think it over and I'll get back to him. This just doesn't seem right. Do you have any opinions?

He is absolutely right about the 53 cents per mile. That includes gasoline, insurance, repairs and all other items relating to using your car for business. Unless your car gets less than 6 miles to the gallon that should more than cover your gasoline costs.

I do not think he has any intention of treating you like a regular employee. So, once again, you have a decision to make.

 

[Rememberjustice]

53¢ per mile DOES more than cover gas unless you drive a huge gas-hog. My secondary car (my "gas-hog") get's about 18mpg. That's $9.54 per gallon I'd get at 53¢ per mile. Even if you cut it in half (to account for the return trip), it's still $4.77 per gallon at that rate.

But, on the hours, he's wrong. The numbers of hours doesn't determine your classification as an employee.

Well that doesn't make it seem as bad. I still don't feel like I should be classified as an independent contractor and he doesn't seem to want to budge on that. But I was considering volunteering anyway to get some hands on experience, so maybe this isn't such a bad arrangement for me after all. At the end of the day I'm getting trained and being paid for it.

 

[Zigner]

Well that doesn't make it seem as bad. I still don't feel like I should be classified as an independent contractor and he doesn't seem to want to budge on that. But I was considering volunteering anyway to get some hands on experience, so maybe this isn't such a bad arrangement for me after all. At the end of the day I'm getting trained and being paid for it.

You can choose to participate in this fraud if you'd like.

 

[Rememberjustice]

You can choose to participate in this fraud if you'd like.

Wait, I am committing fraud? The company is the one who is determining the status of my employment. If I am going to be held responsible for possible fraud I'm definitely not getting involved.

So it's either decline offer or somehow convince him to do the W-4?

 

[Zigner]

Wait, I am committing fraud? The company is the one who is determining the status of my employment. If I am going to be held responsible for possible fraud I'm definitely not getting involved.

So it's either decline offer or somehow convince him to do the W-4?

Again, it's your choice. Your eyes are wide open.

 

[Rememberjustice]

Again, it's your choice. Your eyes are wide open.

Geez. That rules him out. How much of a financial incentive is there for him to not hire me as a regular w-2 employee?

 

[Zigner]

Geez. That rules him out. How much of a financial incentive is there for him to not hire me as a regular w-2 employee?

Considering the penalties, none in the long run.

 

[LdiJ]

Geez. That rules him out. How much of a financial incentive is there for him to not hire me as a regular w-2 employee?

In the short term he avoids:

The employer share of social security and medicare taxes
The employer state unemployment compensation tax
The federal unemployment compensation tax
Workman's comp insurance
Any other employee benefits

In the long term, when/if he eventually gets caught, it will cost him twice as much to get his backside out of the sling than it would have cost to have done it right in the first place.