Is this legal?

I am very new to the situation that I am going to describe to you and need some advice on whether or not it is legit. I recentely left a job at an auto repair facility in New york state that I was at for about 8 years to go back to a previous employer to work. Here is the deal though at the new job. I recieve a 50 percent cut on all jobs performed by me at this facility. Parts and labor. I am there on a daily basis and perform all work on both his and my own customers but buy all parts under his accounts. I regularly try to promote business and am in charge of diagnosing problems, estimating jobs and discussing problems with customers. Who and where I get parts from is entirly up to me and I can charge more or less than normal depending on circumstances. I work out of his shop but furnish all of my own tools including some big $ tools not normally supplied by your average "Employee". I pay all of my own taxes based on what I made.(My half). No deductions are made by the owner. If a job goes bad or comes back with a problem, I fix it and share the loss. Parts and labor. I also contribute to some of the shop expenses.. Question here is, Am I a percentage partner? Individual contractor, Or just an employee with a big pay check awaiting for a visit from the IRS? Thanks to all who reply ... P.S There is no insurance or workers comp payed on me either.

Generally, you are an independent contractor if you control the way the work is done. However, there are a lot of factors the IRS looks at. From what you say, I would think you probably are an independent contractor, but it is best that you check for yourself since you know the facts best. See Pub. 15-A, Employer's Supplemental Tax Guide, for information on how to determine whether an individual providing services is an independent contractor or an employee. Download the publication for free at http://www.irs.ustreas.gov/forms_pubs/index.html