Okay so me and my old boss have been in talks of me coming back, he said he really likes me and all that good stuff. He emails me yesterday talking about hiring me as a 1099 for an indefinite period of time.
Was wanting me to sign an affidavit about liability and everything. But also in the contract it’s saying he’s hiring me under his other company and not the one I will actually be working at again. And then continues to say I have to report at the shop at this time and clock in at certain times and use my own tools and it says I have to pay for any damages to products and if i get terminated, I have to pay expenses for the new hire? I’m not familiar with all this and I just want to see if this stuff is normal at all??
Getting hired at old job as 1099 instead of W-2
byu/Minute_Relation_9413 intax
Posted by Minute_Relation_9413
12 Comments
Yeah sounds likes he trying to commit fraud. I would not accept this job
Highly recommend you seek other employment. This employer is trying to take advantage of you (and likely other “employees”) to make you shoulder more of the cost while he keeps the power which is often illegal
Almost all of the things you’re describing are huge red flags. If he incorrectly classifies you as a 1099 independent contractor you will be on the hook for self employment taxes at a minimum (possibly also state/local taxes as well)
https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee
“Normal” in the sense that way too many employers misclassify employees as independent contractors? Yes.
Correct? No. This is not proper.
As a 1099, no PTO, no health insurance, no benefits of any kind.
You better be getting a much higher hourly rate than as a W2 to make up the difference.
Tax evasion and fraud say no
If you take the job………
He can call you a 1099 contractor, but that doesn’t make you one. It’s not his decision to make.
At tax time, consider form SS-8.
[https://www.irs.gov/forms-pubs/about-form-ss-8](https://www.irs.gov/forms-pubs/about-form-ss-8)
Run.
Even if you qualified as 1099 you should be asking for a 30-50% premium over your w-2 pay.
But no way this is 1099
Please don’t take this job! 👏👏👏👏
You’re gonna take a 7.65% tax hit for the employer’s share of FICA.
You should expect to get paid at least 20% (and more like 50% – 100%, if your pay rate is pretty low) for this arrangement.
I would not agree to any clause that says if you’re terminated you pay for expenses for a new hire and I would also ensure a cap on damages is in place for you being liable to pay for damages to products.
A 1099 contractor is someone who runs their own show. What you are describing (especially clocking in and out) is an employee/W2. You will not be entitled to unemployment benefits, workers comp insurance, health ins or any other benefits. You will also get hit hard at tax time. He is doing this to save money. But it’s tax fraud on his half. Look for other employment. This has red flags all over it.