Can you legally pay a regular employee as an independent contractor? 1099 question?

Can you legally pay a regular employee as an independent contractor? 1099 question?
I am a regular employee that pays all of my taxes...ALL of 'em. I have a boss. He finds the jobs. He bids the jobs. He makes the calls on how to build stuff (I am a marine carpenter). He pays me, and has done so steadily for two years. I have to have liability insurance. If I get injured, I think I'm screwed...I have no personal insurance. How good of a deal is he getting by paying me as an independent contractor? And again, is this legal?


Answers:

Chosen Answer
PacificHR S:  he's saving on Social Security, medicare, federal taxes, state taxes, and biggest, and most importantly, insurance, both liability, and workers comp. It's legal, if you can honestly be described as an independent contractor. to check up on this, visit the posted website I'm included, and try to determine if you're an employee or a contractor. http://www.irs.gov/businesses/small/article/0,,id=99921,00.html
2007-11-30 19:28:12
robert w:  sorry given the info stated ur ARE a Sub Contractor and should receive a 1099 form not W-2. if u receive a W-2, u and he have IRS problems. Agin u are not an employee.
2007-11-30 19:30:11
LuvDylan:  It may depend on the state you live in. Generally, an independent contractor should (1) own or provide his own specialized tools, general professional tools, (2) can use payers computers etc, and still be contractor status. (3) should follow normal business custom, so if other businesses of the same type pay contract, then it would be OK for your boss to pay contract. I hope you have been making estimated federal tax payments. Go to IRS.gov. :)
2007-11-30 19:37:48
Judy:  No, a regular employee can't be paid as an independent contractor. But from your description of your situation, it's not clear which you are. OK, he finds the jobs and sets the rules on how to build the items. But are you paid hourly, or by the total job? Does he set your hours, or do you as long as you meet the deadlines? If you are paid hourly, and he sets your daily workhours, maybe says that you must work 8-5, you're an employee, othewise you are probably correctly classified as an independent contractor.
2007-11-30 19:43:27
Ebb and Flow:  Simple answer is No. From what I read before me, the answers get better as they go down. Judy has factual and valid points. I'm a business owner of 17 years and have came across this topic time and again. There are definately securities for an employee to be paid so. You need to do the math to determine what you need or want to make as an independent to make it worth-while. From your "tone" it sounds as if your employer is on the receiving end.
2007-11-30 19:50:41