Employer wants to quit deducting taxes

[scott56]

What is the name of your state? Indiana

The small company I work for filed bankruptcy and re-organized under a new name about a year ago. Now they are back in the same financial trouble they were in, and their solution to save money is to quit taking deductions from our paycheck. In other words, they want all 6 of the remaining employees to become "independent, self-employed contractors".
I have run a printing press for this company for almost 4 years and due to slow business, I am only getting about 20 hours a week.
Can they legally force me to file taxes as self-employed, and do I have any legal recourse?
Thank you very much for your time
Scott

 

[anteater]

Unless you have a printing press in your basement, work on their jobs when you choose, offer your printing services to others, etc, you are almost assuredly not an independent contractor. And no amount of your employer saying you are will make it so.

I suggest that you have a talk with your employer and explain that it is not their choice, they are only going to dig themselves into a deeper hole, and they need to find another way to make the business healthy.

There is voluminous information about about the employee - independent contractor distinction, but I suggest you start with this from the IRS to familiarize yourself with the question. Maybe suggest that your employer read it also.

http://www.irs.gov/pub/irs-pdf/p15a.pdf

 

[justalayman]

If they are in this situation and are suggesting this type of idea, I would be sure that any withholdings are actually being submitted to the appopriate agencies as well. They would not be the first company to fail to submit payments for taxes, SS, and health and welfare (insurance) payments.

Things that will ultimately come back to you if they are not paid properly.

 

[scott56]

WOW - I am in a better position than I thought. I figured I was just up "spit crick"
I found IRS form SS-8 which I will fill out (if necessary) to support my position.
Thank you very much for the link to the IRS website, and for the additional advice.
Scott

 

[pattytx]

But come on, do you really think that this company cares about that? If they're in that much financial trouble, I would suggest you get outta Dodge ASAP.