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My employer pays me with 1099 but treats me like a W2. What are my options?

My employer hired me on like any other work I've ever done, requires me to be there at a certain time, and even does things like give me raises for performance. He doesn't pay me overtime, or give me benefits- and gives me a real hard time when I talk to him about the legality of this. Is he breaking the law, and could someone point me to a website showing the legality of this issue?

PS- I'm an Illinois worker if that matters and the job is web design.

Update:

More details: I'm hourly, there is no HR department per se, and it's not union.

9 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    my guess is you are cheating the government and not paying your own social security tax. but neither are you taking deductions you are legally entitled to either. if you follow the rules, you come out better with the 1099. him to because he otherwise would have to pay half your social security and workers comp and unemployment insurance. here is what i suggest: learn the rules and follow them. if or when you lose your job or get injured on the job you go to the sate and make a claim that you are an employee. right now the fact you are paid hourly could go either way. however, i am guessing you use his equipment for work...good for you. also, my guess is you do not carry any insurance on yourself or as a one person business. you must and it is your employers responsibility to verify that you do so. good for you if you need to prove you are an employee ( W2)

  • 5 years ago

    Unfortunately, you may find yourself without a job after you do this. They will probably have to pay lots in back taxes for you and any other employee they have mis-classified as a contractor. I'm not agreeing with them or saying what they are doing is not wrong, but you have to weigh the consequences of not having a job when it's over and done with. You should make estimated tax payments in order to not get hit with a big tax bill and penalty.

  • 1 decade ago

    If your employer hired you as a 1099 , he can not tell you when to come in to work, if he is doing all that you say he is then he is just hired you as a 1099 to keep from pa yin the taxes on you.

    All you have to do is report him to the IRS. The will step right in.

    Hope that this helps.

    cricket

    Source(s): My employer done me the same way and I had to pay taxes over 2,000.00 that year. This was in Fl.( Experance)
  • wizjp
    Lv 7
    1 decade ago

    You are a private contractor and working accordingly. You can ask him to hire you as a full time employee; or you can quit.

    Contact Labor Relations Board to see if there have been any actual laws broken; but it's probably legal if not right

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  • 1 decade ago

    Contact an accountant or an employment lawyer familiar with Illinois employment law. Verify what is and isn't legal in your state. Be prepared to pay this person for their advice, since your livelihood is dependent upon it. If things aren't right, they can advise you on what steps to take next. Good luck.

  • 1 decade ago

    Are you on salary or hourly wage. Depends on your contract. If you are union you can ask your union rep. He is not required to give benefits.

  • 1 decade ago

    Check with Human Resources or ask an attorney. The last thing he wants is a lawsuit over a matter he should be dealing with.

  • 1 decade ago

    Go to the local Labor Board and report him. What he is doing is very illegal.

  • Anonymous
    1 decade ago

    just quit its not worth it to be pushed around by someone mean to you

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