Dear sam,
Just to clarify, you say 'contract' employee, Do you mean independant contractor? 1099s are not given to actual employees, only self-employed, ie. ICs.
Sam,
FYI, as an IC, (if you truly are, which is up for debate at this point) you are not employed by the employer. Rather, you are basically a business and you provide a service to a client, that client being the entity you are referring to as employer.
However, since your company is putting WC insurance into the picture with you, I'm wondering if they are getting nailed for miscategorizing you (and others) as ICs when you are employees.
Classifying a worker as an independent contractor rather than an employee allows businesses to compensate their workers without withholding federal, state, and social security taxes and to avoid paying workers' compensation insurance, unemployment insurance, and employment taxes. Independent contractors aren't entitled to benefits a company may provide to its employees, including health insurance, paid vacation time, life insurance, disability insurance, stock options, and 401(k) retirement plans.
A number of recent cases have held that employers that classified their workers as independent contractors were wrong. The courts found that the workers were really employees, and the employers were required to pay back taxes, overtime, and various fines and penalties.
Now, given the above, as per LA law, http://law.justia.com/louisiana/codes/7/83573.html the employer is not permitted to pass off this expense to the employees covered. So there is likely something fishy going on here. I would contact the LA district office at http://www.laworks.net/WorkersComp/OWC_districtofficelisting.asp
Good luck with this this.
Hope this helps to clarify.
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i am a full time employee i have a company supplied phone, credit cards with their name and mine on them and business cards from them with my name and position.
you are correct about them doing this not haveing to pay taxes and benefits, i have been asking and been told several times he was working on me becoming a full time employee but he keeps putting it off on his accountant and attorney.
They appear to be in violation of a few items here. The question is, are you going to push the envelope or allow it to continue? I suppose it depends on what you have to gain/lose, particularly in this tight economy. It is funny how they take their swee. time when it is you paying the price and them saving, however illegitimately. (I.e. they are illegally categorizing you as an IC when the parameters of the job indicate your an employee (ie. the level of control they engage in over you and how you do the job). In any event, if you are an IC you are not entited to WC benefits and so you shouldn't be paying for it and if you are an employee, they are not allowed to pass on that expense to you. They lose either way, as far as I see it. Good luck!
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