Employer is claiming me as a subcontractor

[blake86]

In October of 2006 I lost my job due to mental health issues and went to work for my wife's father. He owns his own painting company with two other employees. I was paid in cash every week. When i asked him about my taxes that I should be paying he said to not worry about it till the end of the year and his CPA would work it out. As my father-in-law I didn't give it much worry because he has been in business for around 20 years now.

That brings me to my current situation and that is my wife is now divorcing me. It has become a quite nasty affair and he is showing he true colors. He called me yesterday and told me that he would delivering my statement of earnings as his subcontractor and that I needed to pay my taxes like everyone else. Now I do not dispute my faults of not staying current with my taxes, but I had always intended to pay them at the end of the fiscal year; my dispute is in the title of subcontractor. I have done some research on the qualifications of employee vs. subcontractor, and I fulfill every qualification of an employee.

That brings me to my question. I will not even try to pretend this is about revenge. I know for a fact that all of his employees are paid in cash without taxes/ssi/medicare. I also know for a fact that he claims nowhere close to what he is actually earning in his business. I am wondering what would be the best way to go about shedding light onto his illicit activities and to also learn what I need to pay as far as taxes on my behalf. Thank you in advance for any help that you may provide.

Garrett
Memphis, TN

[irsos]

Originally Posted by blake86

In October of 2006 I lost my job due to mental health issues and went to work for my wife's father. He owns his own painting company with two other employees. I was paid in cash every week. When i asked him about my taxes that I should be paying he said to not worry about it till the end of the year and his CPA would work it out. As my father-in-law I didn't give it much worry because he has been in business for around 20 years now.

That brings me to my current situation and that is my wife is now divorcing me. It has become a quite nasty affair and he is showing he true colors. He called me yesterday and told me that he would delivering my statement of earnings as his subcontractor and that I needed to pay my taxes like everyone else. Now I do not dispute my faults of not staying current with my taxes, but I had always intended to pay them at the end of the fiscal year; my dispute is in the title of subcontractor. I have done some research on the qualifications of employee vs. subcontractor, and I fulfill every qualification of an employee.

That brings me to my question. I will not even try to pretend this is about revenge. I know for a fact that all of his employees are paid in cash without taxes/ssi/medicare. I also know for a fact that he claims nowhere close to what he is actually earning in his business. I am wondering what would be the best way to go about shedding light onto his illicit activities and to also learn what I need to pay as far as taxes on my behalf. Thank you in advance for any help that you may provide.

Garrett
Memphis, TN

Start with the TN unemployment department. Then download IRS Form SS-8 and file it. Meanwhile, you can get credit for half of your fica/medicare by filing Form 4137 with your return.

[abezon]

Form 4137 is used to calculate your half of the employment taxes that should have been withheld from your salary. Your employer was required to match it. Use From 4137 & cross out "TIPS" & write in "WAGES" on the top.

For 2007, the IRS has a new form (8819??) that actually says 'wages' on it.