She Got 1099'd

I got into an argument with my boss over unpaid overtime.
I told him, if it wasn't paid, then I couldn't continue working.
He asked me if I was quitting. I told him I didn't want to quit, but I was due my wages.
He asked me abruptly if I was working today. I indicated I was.
He told me he would talk to Linda, his wife and left in a huff.
Keep in mind, all I had done was ask for unpaid overtime (Two Thursday nights at 5 hours each, one 12 hour Saturday and one 6 hour Sunday).
So my boss comes home and says he cut me a check for the missing overtime. He said he realized he needed to keep better track of it.
So, I open the envelope and the check is there, in the correct amount.\
He also supplied a YTD 1099, projected through Friday.
I have been getting paid cash all this time, minus the check. We only ever talked about being paid off the books. Now, he is basically handing me an enormous tax bill. I am so upset! This will be like 5K just for the first half of the year as an independent contractor. How can he do this? And seriously, just because I asked for wages that were due to me? That I wanted specifically to pay off a credit card?

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Anonymous said...

hat is Illegal to give a 1099. Do some research. Nannies are not independent contractors we are employees and if we want to be paid legally we need W2's like regular jobs.

Smalltownnanny said...

Seriously nannies...stop taking jobs without some sort of written contract!!!!! Although I'm not sure on the legalities of them 1099ing you but no way to prove what was agreed upon tax wise without a contract. And just some advice for young nannies. I took a great nanny job right out of high school that was off the books. And I regret it cause it was such a hassle when trying to get a car and my own place to live to have to account for a seven year gap where on the record it looked like I had no income.

Nan said...

1099 is illegal!! You are not an independent contractor! You need a W-2. You should be on the books for your own protection. "
The IRS has ruled definitively that nannies and most other domestic workers should be classified as employees. Misclassifying them as independent contractors is considered tax evasion and offenders are saddled with back taxes, penalties, and interest. If caught, it is an extremely expensive mistake for families. Being classified as an independent contractor is not only illegal, it's financially bad for the nanny. That's because independent contractors are required by law to pay for both halves of the FICA taxes (social security and medicare"

Please don't do 1099!

Thirty something said...

He's an ass. I would find different employers. And also suggest that they pay you on the books in retrospect if they want to play that game. They'll find themselves very out of pocket and it sounds like they don't like to be hit in the pocket. Asses.

CleaverJune said...

I agree with just about everything from all the above posts.

1. Aside from yourself, you do every nanny everywhere a dis-service when you work under the table and without a written work agreement. from now on, don't do it, EVER.

2. 1099 is illegal for all domestic employees. I would make sure you told this DB that. If he wants to get all asshat about paying you OT and wants to pay legally, tell him you insist on full payroll. That means he has to pay about 40% more in taxes for every paycheck, as well as a legal obligation to pay you over time at time and a half. be sure to tell him that you will have to repot it on your taxes via estimated W4, that WILL trigger someone looking at it at the IRS, &Y that will trigger them looking at HIM. Yes, you'll have to pay some back taxes that way, but he will owe a shit-ton more, and it will likely trigger an audit for him. If he's smart, he won't want that hassle.

3. look for a new job, this guy is a prick and you don't deserve that or need it in your life. He is only going to screw you over when you get fired - and he IS the guy who will fire you for calling him on this 1099 bullshit.

4. demand a written work agreement from this point on, and make sure it addresses OT and payment. Otherwise if you don't get fired, you will be in exactly this spot next time - and there will be a next time.

These people are clearly not the type of people that will treat you fairly or with respect. I think the big question here is do you want to work like that?

Please tell us how this all shakes out.

SfNanny said...

Cleaver June - you hit it right to the point!

Lacy said...

I would start by filling an IRS form called an SS8. In this form you would describe your job description. After the IRS would make a ruling, non-reversible, 78% of the time the rule the person is an employee. I have done this on a family before, they ended up being responsible for ALL back taxes and penalties, for both them and the nannies. Lucky for me they had 3 part time nannies, so the other 2 nannies got "free" taxes too; and the family couldn't pin-point who or how they got the audit. Long story short I got to keep the job and it was on the books after that.