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misclassified as independent contractor?

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hourlybob

Junior Member
What is the name of your state?What is the name of your state? PA

Greetings. Since January I've been working providing support over the Internet. I'm being paid an hourly wage and I work a regular set 40 hour schedule. I login to a web based support system and I take phone calls which ring through to an VOIP phone supplied by my employer just as if I were working at the employer's physical location. I also use various web-based tools through which I can remotely stop/start equipment at the employer's location as if I were working onsite.

When I was hired I was told that I would receive health insurance, 401k and other benefits. The employer had originally classified me as an hourly employee, had me complete a W-4 and for 2 months plus deducted taxes from my weekly paycheck. In April (I believe due to problems with providing health insurance coverage to a sole out of state employee) my employer reclassified me as an independent contractor and reimbursed me for the taxes which had been deducted. As the benefits weren't a major issue and as I felt that 'rocking the boat' would lead to a termination of employment I went along with this at the time, however I'm finding now that even with home office and PC expense deductions I'm taking a fairly big beating tax-wize.

From what I've read of the criteria I'm of the opinion that I'm an hourly employee who has clearly been misclassified as an independent contractor. Any thoughts/advice as to how I can/should proceed would be most gratefully appreciated. Thanks in advance for your time!
 


abezon

Senior Member
You can report your income on line 7 (wages) & fill out form 4197? Employee Taxes on Tips. Cross out "Tips" & Write in "Wages". This way you're asserting that you were an employee.

You can request an IRS determination of your status by filing form SS-8. But you're right, you could be fired even if you win the determination.

You could negotiate a higher hourly wage to cover having to pay your own taxes.
 

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