I quit my job...weird issue

Hi,

for four weeks they owe me about 5,600 and I am in NY State. Thank you guys so much for your feedback. I did wind up invoicing them as I want to get this over with but I should probably talk to the IRS. I will not be able to collect unemployment anyway as I have always freelanced either full-time or on the side prior to dealing with these guys.

You should talk to the IRS. You still might collect unemployment. Go ahead and file…you still have pay stubs from previous pay dates, correct?

Wiki on misclassification of employees and independent contractors.
IRS website: Independent Contractor (Self-Employed) or Employee?

By paying you the IC rate of $5600, they are trying to avoid paying their share (and your share) of Social Security and Medicare of $428.40 each. (7.65% each, 15.3% total). Also, they maybe avoiding paying their share (and maybe your share) of unemployment, disability, etc. at either or both Fed and State levels. When you call, the IRS may perk up when you inform them that you were classified as an employee for most of your work history with the company except for the final payment. It sounds pretty cut and dry to me…and this is coming from me, an employer. Boneheaded move if you ask me.

I don’t think he actually received any paycheques from this company, Yeticus. I do think ratting them out to the I.R.S. is an excellent idea, though - the government has so much more ability to make their lives miserable than one little peon has. :slight_smile:

I honestly doubt the IRS would do anything except say thank you and hang up, but it’s worth a shot. If this company is, for some reason, already red flagged in the IRS system, this might trigger a world of pain. If they are otherwise clean, it wont do anything.

As for the whether or not the IRS will do anything if you call, it depends on whether you are considered a big fish or a small fish. This probably won’t end up on their hot list, but it’s not that small of a matter either. Diosa maybe right about it depending on if the company is clean or not-so-clean.

Either way, good luck, ceen.

You can fill out a form and send it to the IRS to have them determine your status. It may take 6 months for them to reach a decision, but if it goes in your favor it screws the company.

Good luck.