Submitted by FreeMullets t3_115wzxw in personalfinance
Like the title says, I and the other part-timers at my work were unceremoniously changed to a 1099 with little explanation. No change in my pay, so it looks like I'll be covering the taxes they used to cover, which is essentially a pay cut.
I am a barber so I am paid a certain percentage for every service I perform. I am not a renter. This type of position/pay is not typically 1099 and the switch is likely illegal. My employer is notorious for trying to skimp for pennies and cut every small corner possible, so I'm quite certain that the change is solely to save the 8% or whatever on taxes. Renegotiating my rate is likely off the table. I don't even want to bring this up because I fear that if they sense I know what's going on, and what my rights are as a "contractor", they will fire me. Anyway, raising my rate just to keep my income consistent doesn't make the position any more legal.
So, I've been pointed to the dept of labor and the IRS, which will open up investigations on my employer, but my name goes on the forms, so it's likely I'd be fired just for rocking the boat. (I know that's technically illegal but it's too hard to prove retaliation.) At this point, I'd like to confirm my suspicions with a qualified professional before I get myself in hot water. I would hate to either contact the other employees about this only to be incorrect, or bring the IRS down on my employer only to be incorrect.
What kind of person should I talk to? Hopefully for free? It really sucks to have to pay money to find out if I'm a victim of fraud.