What is the name of your state (only U.S. law)? Minnesota. I have a friend who applied for a job over the phone. The owner said he was looking to hire an employee. After my friend took the job and worked for several weeks, he noticed that no money was being taken out of his checks that were made out to him personally. When he questioned the owner about it, the owner said he wanted him to classify himself as a subcontractor at the end of the year. The owner also stated that he would be giving him a 1099 and NOT a w-2. My friend doesn't work there anymore. He said that it didn't feel right.
I think my friend should report this guy because it sounds like some kind of tax evasion on the owner's part. I went to the irs website and my friend would DEFINATELY be considered an employee. I also looked into something called the "whistleblowers informant award" where my friend could possibly get a reward for turning in this contractor.
Do you think he has a chance in proving this? I told him I think he should do this, but what do you think?What is the name of your state (only U.S. law)?
I think my friend should report this guy because it sounds like some kind of tax evasion on the owner's part. I went to the irs website and my friend would DEFINATELY be considered an employee. I also looked into something called the "whistleblowers informant award" where my friend could possibly get a reward for turning in this contractor.
Do you think he has a chance in proving this? I told him I think he should do this, but what do you think?What is the name of your state (only U.S. law)?