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Who do I contact about a company taking workmans comp from my paychecks and classifing me as self employed?

  
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Who do I contact about a company taking workmans comp from my paychecks and classifing me as self employed?

Postby bardoul » Wed Jul 25, 2012 6:02 am

I worked part time doing laundry for a company.(Vacation Rentals) They were paying me weekly for the hours I worked but every week there was a certain percentage (5%-10%) taken out of my check. When I asked about it they said it was for workmans comp. Then tax time comes around and I get a 1099 mind you I never filled out an application for them or a W9. Though the 1099 they gave me had a different company name on it then the checks I recieved from that company. Is this possible for them to do? Who should I contact about it? I couldn't find anything on the Labor Laws and the Tax professional I went to was clueless.
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Who do I contact about a company taking workmans comp from my paychecks and classifing me as self employed?

Postby curran » Wed Jul 25, 2012 6:08 am

http://www.naea.org/

See weblink above. Find an "Enrolled Agent" in your city or county. They'll know exactly what to do.
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Who do I contact about a company taking workmans comp from my paychecks and classifing me as self employed?

Postby breasal » Wed Jul 25, 2012 6:16 am

http://www.naea.org/

See weblink above. Find an "Enrolled Agent" in your city or county. They'll know exactly what to do.
And as you should already know this is July 24 2012 RIGHT and this 1099 form was received around the end of January for the 2013 tax filing season and you are just now starting to ask this question about your problem that you think you might have with this 1099 at this time in your life.
Schedule C and the Schedule SE along with the 1040 FIT return to correctly fill out and complete your 1040 income tax return for your business operation.
Use the search box at the www.irs.gov website for What is Small Business Filing Season Central?
Small Business Filing Season Central is your one-stop assistance center for filing your business returns.

http://www.irs.gov/businesses/small/article/0,,id=134947,00.html

Business Expenses
Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit.

http://www.irs.gov/businesses/small/article/0,,id=109807,00.html

What Can I Deduct?
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.
It is important to separate business expenses from the following expenses:
For additional information, refer to the chapter on Cost of Goods Sold, Publication 334, Tax Guide for Small Businesses and the chapter on Inventories, Publication 538, Accounting Periods and Methods.
Capital Expenses
Note: You can elect to deduct or amortize certain business start-up costs. Refer to chapters 7 and 8 of Publication 535, Business Expenses.
Personal versus Business Expenses
Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part.
The remaining 30% is personal interest and is not deductible. Refer to chapter 4 of Publication 535, Business Expenses, for information on deducting interest and the allocation rules.
Business Use of Your Home
Refer to Home Office Deduction and Publication 587, Business Use of Your Home, for more information.
Business Use of Your Car
Refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses. For a list of current and prior year mileage rates see the Standard Mileage Rates.
Other Types of Business Expenses
This list is not all inclusive of the types of business expenses that you can deduct. For additional information, refer to Publication 535, Business Expenses.
References/Related Topics
Page Last Reviewed or Updated: February 21, 2012

Filing and Paying Your Business Taxes

http://www.irs.gov/businesses/small/article/0,,id=109805,00.html

The form of business you operate determines what taxes you must pay and how you pay them.
The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. An employee usually has income tax withheld from his or her pay.
For additional information refer to Publication 583, Starting a Business and Keeping Records.
Estimated tax
Self-Employment Tax
Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Your payments of SE tax contribute to your coverage under the social security system. Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.
Generally, you must pay SE tax and file Schedule SE (Form 1040) if either of the following applies.
•If your net earnings from self-employment were $400 or more.
For additional information, refer to Self-Employment Tax.

http://www.irs.gov/businesses/small/article/0,,id=172179,00.html

Hope that you find the above enclosed information useful. 07/24/2012
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Who do I contact about a company taking workmans comp from my paychecks and classifing me as self employed?

Postby ammi » Wed Jul 25, 2012 6:26 am

File Form SS-8 with the IRS: http://www.irs.gov/pub/irs-pdf/fss8.pdf The IRS will then determine whether or not you were legally classified as an independent contractor. If the IRS determines you should have been classified as an employee, contact your state's Department of Labor (or its equivalent) and inform them of the erroneous employment classification.

Edit to add: If you are an independent contractor (1099) and not an employee (W2), you should not have had worker's comp taken out of your check as independent contractors are not eligible for worker's comp. Even in those couple of states that to deduct worker's comp from an employee's paycheck, it is never 5-10%.
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Who do I contact about a company taking workmans comp from my paychecks and classifing me as self employed?

Postby tupac » Wed Jul 25, 2012 6:29 am

File Form SS-8 with the IRS: http://www.irs.gov/pub/irs-pdf/fss8.pdf The IRS will then determine whether or not you were legally classified as an independent contractor. If the IRS determines you should have been classified as an employee, contact your state's Department of Labor (or its equivalent) and inform them of the erroneous employment classification.

Edit to add: If you are an independent contractor (1099) and not an employee (W2), you should not have had worker's comp taken out of your check as independent contractors are not eligible for worker's comp. Even in those couple of states that to deduct worker's comp from an employee's paycheck, it is never 5-10%.
To fix it you go back to your employer or file an SS8 with the IRS.
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Who do I contact about a company taking workmans comp from my paychecks and classifing me as self employed?

Postby claudius » Wed Jul 25, 2012 6:36 am

filing a W-9 and being issued a 1099 indicates you are an independent contractor and the only thing they can withhold from your check is 'backup' withholding that IRS has notified them to do
they cannot deduct workmen's comp because as an independent contractor you are liable for that yourself
as a W-2 employer, they cannot deduct it either since that insurance is an expense of the employer
the different name could be a payroll service and I have had experience with them not knowing that much about employee/employer obiligations
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