Please Help, Being Forced 1099 Or Fired?

[Jason2679302]

Hi, I'm Jason...I have worked for a company this is my 3rd year it has always been me and my little brother, the company has always had about 50 or 60 clients and the owner has never done any tax withholding, no benefits, no 1099 nothing. I needed a job, my brother has no education and we've done what we could to survive. Now this week the company was sold to the previous owners best friend. I am told by the new owner I have until next friday to sign a 1099 agreement or to find another job. In my eyes I should have had withholdings all of the last 2 years to that I could have drawn unemployment in the winter until I could find more work. This new guy is offering $11/hr as a 1099. I am and my brother a professional landscaper, we use their $20,000 worth of equipment to service their clients on their time for their profit while they skeetch us out a puny small check in which now I'm getting fired for not accepting to be 1099ed???????? Please Help Anyone?

[Little's]

Lawn care business tips

Are you saying you didnt know you were working under the table? Most people do that because they want the extra money that would normally go to Uncle Sam. I say either sign it and then next year collect unemployment if you need to, or find another job. Seems pretty straight forward to me. Good luck.

__________________
Northern California

[Steve]

Hi Jason,

Welcome to our forum.

I guess basically the new owner can do whatever he wants to do and then it's up to you to fight it.

Technically I don't think he can pay you as an independent contractor. (1099) The IRS doesn't allow this to go on unless you meet a set of criteria which I doubt this situation meets.

Do you want to keep the job? Do you want to fight him? Do you want to just say screw it and start your own lawn care business?

Which would you rather do?

[musician/lawnman]

As I understand it, For a lawn service to hire a person as a 1099 subcontractor They can tell you basic instructions like what properties to service & what needs to be done either daily or weekly etc. They can not give specific instruction like what order to do the work, when exactly you need to be there etc. The specific instructions make you an employee.

Sounds like the new owner is just looking to cover his butt & be able to claim your labor as an expense in the process. If you go 1099 that's fine but make sure you set money aside as you will need to pay your taxes. Also as a 1099 subcontractor you may need to carry your own workers comp & liability insurance. If your going to do that, you might as well file the DBA & start your own business, then do his jobs with his equipment, & have him make the checks out to the new company name, all the while building your own clientel.
IF you are a subcontractor & not an employee, he can not tell you not to do work for anyone else. If this bothers him, then he wants to have his cake & eat it too. Life doesn't work this way either your a sub or your not!? I use a tree company for tall tree jobs as a sub, I can't tell him not to go trim trees on his own.... same deal. My employees however are just that, & if they wanted to start a business of their own they would be let go.

[Little's]

Originally Posted by musician/lawnman

As I understand it, For a lawn service to hire a person as a 1099 subcontractor They can tell you basic instructions like what properties to service & what needs to be done either daily or weekly etc. They can not give specific instruction like what order to do the work, when exactly you need to be there etc. The specific instructions make you an employee.

Sounds like the new owner is just looking to cover his butt & be able to claim your labor as an expense in the process. If you go 1099 that's fine but make sure you set money aside as you will need to pay your taxes. Also as a 1099 subcontractor you may need to carry your own workers comp & liability insurance. If your going to do that, you might as well file the DBA & start your own business, then do his jobs with his equipment, & have him make the checks out to the new company name, all the while building your own clientel.
IF you are a subcontractor & not an employee, he can not tell you not to do work for anyone else. If this bothers him, then he wants to have his cake & eat it too. Life doesn't work this way either your a sub or your not!? I use a tree company for tall tree jobs as a sub, I can't tell him not to go trim trees on his own.... same deal. My employees however are just that, & if they wanted to start a business of their own they would be let go.

As an independent contractor, you must also use your own tools and equipment.

[Steve]

If you are interested in reading more about this. Here is a great site from the IRS.

Independent Contractor (Self-Employed) or Employee?

In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered.

Common Law Rules

Facts that provide evidence of the degree of control and independence fall into three categories:

1. Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
2. 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.)
3. 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?

[CHEESE2009]

Hey, sorry to hear about the situation.

Honestly, 50-60 customers is something you & your brother should aim for, without the new owner in the picture.

Is the owner going to work, or just collect from your hard work?

I can't imagine he'll be too busy with office work...

....

Just my opinion.

[Jason2679302]

Point Blank I am an employee, and so is every other lawn care employeee in the united states of america that uses the owners equipment, gets orders as to when to work, and let the owner recieve all the profit sitting on his *** doing zero percent of the work.

This owner is sitting back collecting a check, has his own secretary doing the billing, putting us in (no logo) tshirts, trying to set a sales percent in the contract that is capped at 5%, and pay us like dogs getting these 50 or 60 done in 30 hours, and only because they're spread throughout the entire city. He's also demanding we get hime yards that are closer together. This guy wants to have a sweat shop, sit back and eat his cake. I am going into business for myself with a small loan, and do things the right way. Screw the fat pig. I'll whistleblow him in a few weeks when all is said in done, because my brother seems to be staying on board.

[CHEESE2009]

I hope you pull it off! If you do, get your brother out of there. The last thing you need is a war.

I wish you guys the best of luck!

[Steve]

Keep us posted on how everything goes!

I am very much looking forwards to your updates.