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wallstreetfighter
wallstreetfighter, Employment Lawyer
Category: Employment Law
Satisfied Customers: 17252
Experience:  14 years exp, General counsel for National Corp. firms, Hostos College instructor, Represented employees in discrimination lawsuits
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My employee is drawing Social Security benefits (her

Customer Question

My employee is drawing Social Security benefits (her deceased husbands). She can only make 15,700.00 per year or she has to pay back 50% of every dollar over that amount. She wants me to pay her 15,700.00 salary through our payroll and the remaining 20,000.00 of her salary to her company she has formed. Is this legal? Could this result in issues for our business or the expectations of her employment?
Submitted: 1 year ago.
Category: Employment Law
Expert:  wallstreetfighter replied 1 year ago.

This would be a violation of labor laws, as she is an employee, and wages are to be paid through a w2, she wants you to pay a 1099 to her corporation, unless you are hiring her corporation to do the work, and she is truly an independent contractor, can you make such an arrangement,

Expert:  wallstreetfighter replied 1 year ago.

if she wants such an arrangement, she should be 100% a contractor, and you would hire her as an independent contractor only, with her signing an IC contract, and pay her a 1099.

Expert:  wallstreetfighter replied 1 year ago.

However, even in this situation, you could run afoul of the labor laws, as if she is really a full time employee, the law requires you to pay her a w2 and treat her as an employee.

Expert:  wallstreetfighter replied 1 year ago.

Good luck, and if you have any further questions please do not hesitate to ask. If satisfied with our service please provide us with positive feedback, thank you

Expert:  wallstreetfighter replied 1 year ago.

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