1099 or Employee

[labushal]

What is the name of your state (only U.S. law)? AZ
I work for a medical device distributor in AZ. I am classified as an independent contractor.

If my daily activities are controlled by my boss and I am told where to be and when, am I really independent?

It appears that I am only independent financially and not in my real day to day activities.

Any thoughts would be appreciated.

Thank you.

 

[justalayman]

If my daily activities are controlled by my boss and I am told where to be and when, am I really independent?

maybe, maybe not. That in itself is not enough to make the determination.

It appears that I am only independent financially and not in my real day to day activities.

explain what you mean by financially independent.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee

http://www.irs.gov/uac/Employee-vs.-Independent-Contractor-%E2%80%93-Seven-Tips-for-Business-Owners

making the determination is often not a simple or even well defined task. Take a look at those sites and attempt to define your relationship regarding the issues of importance. Then come on back.

 

[labushal]

Thank you for your reply.

I have looked at the IRS publications on this. It appears to me that behaviorly I may be an employee. I manage other people, am told who to interview, where to be and when. I have very little say in my day to day activities.

By financially independent I mean that I pay all of my own expenses. It seems like financially I am independent, but behaviorly I am an employee.

 

[cbg]

That's quite possible. It's much easier to qualify as an employee (which is the default - you're an employee until proven otherwise) than an IC.

There is no single element that "proves" status. It's the overall accumulation of evidence. But you very well may be an employee - most people are.

That raises then the question - what do you want to do about it? What is your goal?

 

[labushal]

I am looking into this because I am running into a situation where I am incurring significant marketing expenses and am being told that because I am a 1099 that they will not be reimbursed. My argument is that it seems that the only thing independent about my relationship with my distributorship is the finances.

I want to be able to take this to them and basically tell them they are having their cake and eating it too. I am either independent or I'm not.

 

[FlyingRon]

It's not clear that being classified as an employee is going to change the reimbursement issue.'

Read this and see if it helps: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee

 

[cbg]

Even as an employee, there are only two states where an employer is ever required to reimburse an employee for expenses; AZ is neither of those states; even in one of the two, reimbursable expenses are limited to mileage.

I'm not saying not to pursue this - not by a long shot. But if your goal is reimbursement of expenses, reclassification will not necessarily solve that problem.

 

[labushal]

I know that they are not required to reimburse me for expense. It is, however, common in the industry.

I am asking because their reasoning is that I am an independent contractor. My reasoning is that I am only independent in areas where is benefits the company financially. I am not independent in what I actually do.

 

[LdiJ]

I know that they are not required to reimburse me for expense. It is, however, common in the industry.

I am asking because their reasoning is that I am an independent contractor. My reasoning is that I am only independent in areas where is benefits the company financially. I am not independent in what I actually do.

I would honestly recommend looking for a new job.

 

[davew128]

I know that they are not required to reimburse me for expense. It is, however, common in the industry.

I am asking because their reasoning is that I am an independent contractor. My reasoning is that I am only independent in areas where is benefits the company financially. I am not independent in what I actually do.

Let me repeat what others have stated in plainer language: THEY. ARE. NOT. REQUIRED. TO. REIMBURSE. YOU. EITHER. WAY.

 

[labushal]

Davew128, nice use of all caps and not reading the original question.

I know they are not required to reimburse for anything. I am trying to get some opinions on whether it appears that I am an employee or an independent contractor.

My company is using my 1099 status as their reasoning. If I can show compelling evidence that I am not, in fact, an independent contractor, then it will help with my negotiations over expenses.

I hope this clears up the confusion over what I was actually asking.

 

[justalayman]

My company is using my 1099 status as their reasoning. If I can show compelling evidence that I am not, in fact, an independent contractor, then it will help with my negotiations over expenses.

How? They are not required to reimburse you whether you are an employee or an IC so how would that help in your negotiations?

 

[cbg]

I suspect the answer falls along the lines of, "Pay me the reimbursements and I won't go to the IRS and ask if I'm misclassified," or some variation of that theme.

 

[justalayman]

I suspect the answer falls along the lines of, "Pay me the reimbursements and I won't go to the IRS and ask if I'm misclassified," or some variation of that theme.

oh, so you blackmail your employer into giving you a better deal. What a lovely relationship that would make.

 

[davew128]

Davew128, nice use of all caps and not reading the original question.

I know they are not required to reimburse for anything. I am trying to get some opinions on whether it appears that I am an employee or an independent contractor.

My company is using my 1099 status as their reasoning. If I can show compelling evidence that I am not, in fact, an independent contractor, then it will help with my negotiations over expenses.

I hope this clears up the confusion over what I was actually asking.

I read your question just fine. YOU'RE not getting it. Trying to get them to reimburse you isn't going to change the answer.