Employee or subcontractor .. you BETTER know the difference.

danpauselius

Member
Joined
Oct 8, 2006
Messages
1,325
One of my closest friends was just audited by the IRS over money he paid to his employees. He went in prepared for the worst. As it turned out, he will be getting a check for $225,000 from his former employer.

Confusing, I know. I'll explain.

He owns a moving company (well, he thought he did because that's what his boss told him, LOL) He was told he was a subcontractor for a large moving and storage company in CT. He was responsible for truck payments, fuel, insurance, damage claims, paying his helpers, etc. Turns out, he was not "technically" a subcontractor at all. He was an EMPLOYEE. His IRS issues disappeared and he will now get a HUGE check from his old EMPLOYER.

I think that's the first time I've ever heard of any good coming from an IRS audit.

p.s. There are about 15 other drivers who will be getting checks, some for more, others for less. Either way, this clown (I've met him, he's a real prick) is gonna pay through the nose now.
 
G

Guest

Guest
It's easier to just take taxes out when paying someone. If I use someone for a day I still take taxes out. Have them fill out a W4.

Dave
 

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