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TJ, Esq.
TJ, Esq., Attorney
Category: Employment Law
Satisfied Customers: 12062
Experience:  JD, MBA
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I am a yacht captain that lives aboard the yacht and also at

Customer Question

I am a yacht captain that lives aboard the yacht and also at the owners personal house. I get paid a monthly salary that directly wired reoccuring every month same day. I have no time for any other work except running his boat and managing his house and private affairs. he pays 50% of my health insurance. Im trying to find out if he should be paying my taxes as an employee instead of making me pay self empoyment as independent contractor.
Submitted: 11 months ago.
Category: Employment Law
Customer: replied 11 months ago.
I forgot to add that sometimes we can work up to 3 weeks with no days off usually 3 months at a time before a break
Expert:  TJ, Esq. replied 11 months ago.
Hello and thank you for the opportunity to assist you. My name is ***** ***** I will do my very best to answer your legal questions. The IRS states that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. So, the answer depends on how much control the payer has over what you do. For example, if he dictates exactly how you run the boat and manage his house and affairs, then you are likely an employee, and he should pay part of your taxes. But if you decide how to run the boat and manage the house and affairs, then you're probably an independent contractor and will need to pay self-employment tax. However, there are other (lesser) factors as well: Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business? The bot***** *****ne is that this is ultimately a fact intensive question, and you can certainly file your taxes as though you are an employee, and then let the IRS attempt to resolve the issue by investigating who is correct. Having said that, there is also the issue of employment-at-will, and the possibility that your employer will terminate you if you question this issue and make trouble with the IRS. So, you will need to weigh those factors when determining how to proceed. Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied.
Customer: replied 11 months ago.
TJ thanks for the response. As a liscenced USCG 100 Ton captain I definitely have the ability to run the yacht as its deemed my responsibly of its safety and crew. Now am
Not allowed to take it out at will and the owner defiantly dictates where it goes and who's aboard and where it docked. I have the will to work on at as needed but again I have to have things approved before doing it. It is my job to keep it safe while at dick or in motion. We have no written contract and no pension or such things.
As far as houses they are his and I have to say over what to do just what to fix when he tells me it's broke he is the guiding figure here. I would think that I'm a key aspect of his life as the yacht wouldn't move without me because his insurance has to personally approve the captain and insurance is void without me.I feel I Shoudl have w-2 instead of 10-99
Expert:  TJ, Esq. replied 11 months ago.
Hello again. Based upon what you wrote, it is possible that your employer has a legitimate argument that you are an independent contractor. Of course, as I stated above, you can challenge that quite simply by listing yourself as an employee on your tax return.