Withholding for some employees but not others

[Ktarra]

What is the name of your state? TX

I work for a small private school. I’ve taught there for 6 years now. For the entire time I’ve worked there the teachers have been contractors and we receive a 1099 to file our taxes.

recently a friend had inquired for one of our open positions. Amongst the various other position specific information was the statement that “we do withhold taxes.” They’ve been saying for years that they were going to start withholding but to my knowledge they haven’t. They certainly are not withholding from my check and I make sure to pay my quarterlies. Is that legal to withhold for one employee and not another when they are essentially doing the same job? In this case the teacher position. Or does the position matter?

I’m just trying to get some information before I speak to my administration about this. It doesn’t seem legal to me. But I could be wrong and it is.

Thanks for the advice in advance.

 

[PayrollHRGuy]

The chances of you being an independent contractor as a teacher are slim and none.

You can get the IRS to make a determination by completing this form.

https://www.irs.gov/pub/irs-pdf/fss8.pdf

 

[bcr229]

You can also make a report to the state. Sometimes they move faster than the IRS.

https://twc.texas.gov/businesses/classifying-employees-independent-contractors

 

[adjusterjack]

You can bring some serious trouble down on this school if it is illegally misclassifying employees as independent contractors.

There are two other areas that may be involved: Workers Compensation Insurance law and Unemployment Compensation law.

 

[Taxing Matters]

What is the name of your state? TX
Is that legal to withhold for one employee and not another when they are essentially doing the same job? In this case the teacher position. Or does the position matter?

If you are an employee for federal tax law purposes then the employer MUST do the tax withholding. IRS Publication 15-A explains the difference between an employee and subcontractor.

If you are really an independent contractor then the employer may treat you as an employee if it wants but doesn't have to do that. So if you are really an independent contractor the employer could legally treat some as employees and do the withholding and still treat others as independent contractors. However, treating some people who do the same job as employees while others as independent contractors would certainly raise some suspicion as to whether the independent contractors are properly classified.