Back story:
I’ve been working with an acquaintance since august 2021. When I accepted the job I was told cash in hand, off the books, under the table. Not the best but, I needed something. Fast forward around December I go into the ICU and incur ~80k in medical debt for the week I was under. We had transitioned into getting written checks during that same time. Around may it is said in passing that boss plans to 1099 us “because I can’t be claiming your income.”… I figure I haven’t signed any agreements, this guy is a little green to running a company, and so assume he’ll sort it out and realize the proper tax forms required then get up with us later.
Fast forward to this past week. I need one last thing for my indigent care filing to go through: proof of income. During the week of reminding him, the third day, fit came up again. “I’m trying to do things legit and by the book so I need your social to 1099 ya”.
No sir, won’t agree to that. I’ve been an employee for your company and I refuse to pay self employment taxes when I have not been self employed.
Now we begin the timeless “well I have been 1099’d for the past 7 years and that’s just the way it works.”
I ask “did they schedule your hours? Did they tell you what to do, how to do it, and where? Did they cover business expenses and customer relations?” Etc etc. obviously the answer is yes. So I tell him “then it sounds like you were an employee being misclassified to commit tax fraud. The irs has very clear guidelines on how to do that and I know companies will attempt to do that but it doesn’t make it right.”
After trying to convince me that being under the table (I.e. avoiding the tax system altogether as much as possible for both our benefit) and being misclassified (I.e. me the employee paying extra taxes to save him money) are of the same caliber and what I’m doing is illegal…. Whining that I’m not being fair to him and the mental gymnastics ensue for an hour or so til he concedes that he “won’t be able to convince me right now” to give in and sign a 1099. Suddenly “by the book” and “doing things right” means his book and his definition of right, because all of my proposals and explanation of the law are too stringent. In short: it didn’t benefit him the way he wanted so he’s going to figure out some greasy workaround with his accountant.
During this I explained the difference between a w-2 and 1099 as well as the tax rates, necessary licensing to as 1099, and contributions employers are obligated to make TO MY BOSS. Spoiler, this isn’t the first or even tenth time I’ve been in this situation in the past decade. I suggested a w-2, mind you that even retroactively and not given proper notice I would still agree to file from January 2022 to current day. He stayed dead set on filing me as an independent contractor. I said we can work something out but it won’t be that and I’ll be in touch for my paperwork.
Since community doesn’t allow screenshots here’s a quick transcript of the last message exchange 1 week following my termination:
ME: Hey I still need to get my proof of income for indigent care ASAP. Next Monday I have to pick up some imaging in bwick if I could get them then that’d be cool.
Boss: I still need to get your social for 1099 before I do anything.
I will do a w-2 for you. I will not sign a 1099. You’re asking me to pay self employment taxes when I have not been self employed. The 3 factors are laid out in the link I sent you from the IRS website.
Regardless, you don’t need my social to provide me the proof of income I need. You can get a notarized letter summarizing my pay.
Boss: I’m going to get some advice from my accountant I’ll get back to you.
Next day (yesterday) ME: When can I expect to hear back from you? The outcome of seeing your accountant has no bearing on my medical information and I need those papers by next week.
No response, I have not gotten a phone call returned at all, I’d rather have the messages anyways at this point so it is documented.
He still has not provided my papers and my debt has gone to collections. The way these messages read to me is that he is in fact withholding my information over an unrelated disagreement. Essentially bullying me into submission, which I won’t give in to.
Employers like this deserve some harsh recourse. I’m open to any suggestions on how to proceed? It’s now been over a week since the dispute and my termination, two weeks for my notice of needing proof of income.