AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants.
Visit my website at www.johnstancilcpa.com.
Also visit my blog, www.thetaxdocspot.com.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper. I have prepared taxes for over 30 years.
Education/Credentials DBA University of Memphis
MBA University of Georgia
BS in Accounting Mars Hill College
Question Hello. My wife just took a job with a pretty large company. However, they hired her on as an independent contractor, rather than an employee. They schedule her hours and she has to report to the same place every day, with no option to tele-commute. My wife does have a web site, but it's more of a resume than a business type site. Those aforementioned things lead me to believe the company is circumventing the system, so they don't have to pay her (and their) additional taxes, etc.
The thing is--she doesn't want to press the issue with them as she has only recently started, has been out of work for awhile due to the economy, and they pay pretty well. She is afraid the company will let her go if she brings it up.
What do you suggest? I want my wife to make the money, but I don't want her to get screwed in the process. Thanks.
Answer Jerry,
Thanks for your question.
It sounds to me as if the company is in violation of the law. She can complete an file a Form SS-8 with the IRS for a determination of her correct status. Obviously, as you have noted, there can be risks involved with this approach.
The other is to notify the IRS that the company is in violation and is avoiding SS/Medicare taxes. Probably a quicker result would be to also notify the state unemployment office, as they are also avoiding unemployment taxes.
