contractor or employee

[ljwalters]

Client, a medical assistant, worked for a doctor for 5 months before quitting. I won’t go into the reasons. She received both a W2 and 1099 misc. When I questioned her she told me that the doctor told her after hiring her that she was changing payroll companies and that she would be “paid on 1099” (dr.’s words) until the change over was complete.

The 1099misc was for first 3 months of service and the W2 was for one month.

First is that legal reason to pay an employee as contractor.

Second, client didn’t agree but she didn’t say no either. There was no written contract stating 1099 wages. She wants to file the 8919 and SS-8.

Is this verbal statement at time if hiring enough to cause client to loose.

Which way would you go?

Linda and buddy

What a year?????

[jainen]

>>She wants to file the 8919 and SS-8. <<

Seems like a slam dunk. Changing to 1099 without any change of duties is pretty blatant.

How do such stupid people manage to get through all those years of college and med school? Greed. They rip off their patients, and they rip off their employees.

[ljwalters]

>Seems like a slam dunk. Changing to 1099 without any change of duties is pretty blatant. <

The employer started with 1099 went to W2. My only concer is that the employee was warned before she started working that she would be 1099 for the first month. But that doesn't make it right.

[jainen]

>>started with 1099 <<

Ooops, I got that wrong. Doesn't matter. Even worse for the doctor who KNEW it was supposed to be a W-2 and did it wrong anyway. But she sort of made an effort, so I'd have the employee give her a call or note, requesting to be grossed up a fair amount to avoid having to file the SS-8. Wait two or three days, then go for it.

The state and fed taxing agencies are so mad about this stuff, they don't give any value to the employee's coerced agreement.