I do not agree. IRS will take gross earnings and divide it by hours to determine what is owed. And him getting back overtime means IRS getting more $$$. 75k divided by minimum wage would mean he worked over 9000 hrs which would be roughly 175 hours a week (which is impossible as there are only 168 hours in a week) when a 40 hr work week times 52 weeks is only 2080 hrs.
He can prove hrs worked by simply submitting work orders as evidence ( I know as I always kept copies for 3 years) and that will about do it. It's the primes resposibility to properly classify their employees/contractors, and as well their responsibilty to assure the proper taxes are withheld. At todays operating expenses between tools, milage, insurance, internet access, cell phone, diagnostic equipment, and what cable pays out these days it's quite easy for a one man show to operate at a loss when only making 75k a year. As long as he kept his ducks in a row and can prove expenses with receipts he is ok as a contractor. As for being reclassified as an employee a good tax attorney will get this shifted to the primes responsibility as for misclassification of an employee to a contractor to save on paying taxes is tax evasion.
He was paid as a 1099 contractor, and as long as he didn't fudge his expenses when filing taxes he should have nothing to worry about and the burden falls on the prime for their mis deeds.
Re: IRS said cable guy Employee not Contractor WE
Member #: 34570
Registered: 11/22/2004
Posted:
2050
Name:
Dan Gerson
Name:
Dan Gerson
Company:
No mas cable
Occupation:
Paying bills
Location:
Sunny SW Florida.
Personal:
early 60s
Experience:
~28 years
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