Home |IRS Tax Return | What should I do if my employer suddenly wants to change my status from a W2 employee to a 1099 independent contractor, and I'm currently pregnant?

What should I do if my employer suddenly wants to change my status from a W2 employee to a 1099 independent contractor, and I'm currently pregnant?

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Robert James, 20+ years of experience in IRS matters
Answered on September 19,2023

This is a wage theft scam called misclassification. This is because they are trying to misclassify you as an IC rather than an employee. The main wage theft happening here is that ICs pay 100% of payroll taxes (rather than 50%) but ICs are also not eligible for other things like overtime pay or unemployment (due to not being an employee).

Your employer cannot unilaterally shift you to being an IC without a SUBSTANTIAL change in your job duties. The test of whether you are an IC or an employee is set by FLSA and the most important factor is the right of control. If your employer maintains most of the control then you are likely an employee. The DOL will have more information about this which you can find at www.dol.gov.

If this has happened to you or any fellow employees at your workplace you must file reports with your state and federal DOLs.

KNOW YOUR (WORKER'S) RIGHTS 

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