Have you been misclassified?

Gilligan

#*! boat!
PREMO Member
This is a well known and widely practiced screw job on PAX.

:popcorn:

? It is? How did I miss that? Examples, please?...even if its an old one. I'm only familiar with all the larger support contractors and they can't get away with misclassification (or would be stupid to try to) because there is no way to hide it from a DCAA auditor that I am aware of. My company uses sub-contractors too, of course (all companies do..and always will) and they all get 1099s..but none would remotely qualify as FT employees nor do they want to be FT employees.


I have heard directly about some fab and 'job shop' businesses that use mostly 1099 help. I know a guy who is a CAD operator for a private 'job shop' that has worked as a 1099 contractor for years yet never leaves the same cubbicle 40 hours a week. The home construction industry is almost entirely 1099 contractors. But government support companies?...I'd have to see some hard evidence of that to buy it..
 

Annoying_Boy

New Member
? It is? How did I miss that? Examples, please?...even if its an old one. I'm only familiar with all the larger support contractors and they can't get away with misclassification (or would be stupid to try to) because there is no way to hide it from a DCAA auditor that I am aware of. My company uses sub-contractors too, of course (all companies do..and always will) and they all get 1099s..but none would remotely qualify as FT employees nor do they want to be FT employees.


I have heard directly about some fab and 'job shop' businesses that use mostly 1099 help. I know a guy who is a CAD operator for a private 'job shop' that has worked as a 1099 contractor for years yet never leaves the same cubbicle 40 hours a week. The home construction industry is almost entirely 1099 contractors. But government support companies?...I'd have to see some hard evidence of that to buy it..

Shock. Horror.

You missed something again?

Go talk to IT contractors that work for companies on PAX and ask them if they are salaried or hourly and if they have any supervisory responsibilities?

How often do these type of salaried workers get paid?

Answer: twice, the first and 15th, regardless if that added up to more than 40 hours in a week.

:popcorn:
 

Gilligan

#*! boat!
PREMO Member
Shock. Horror.

You missed something again?

Go talk to IT contractors that work for companies on PAX and ask them if they are salaried or hourly and if they have any supervisory responsibilities?

How often do these type of salaried workers get paid?

Answer: twice, the first and 15th, regardless if that added up to more than 40 hours in a week.

:popcorn:

Exempt versus non-exempt..that is not what the OP and link was about nor why I followed up with the question I did. Not at all. The article described and I was asking about the use of 'contract' labor; individuals who receive 1099s and not W-2s at the end of the year.
 

Annoying_Boy

New Member
Exempt versus non-exempt..that is not what the OP and link was about nor why I followed up with the question I did. Not at all. The article described and I was asking about the use of 'contract' labor; individuals who receive 1099s and not W-2s at the end of the year.

If you want to have that conversation then you should have had the opportunity to talk to the folks that rolled out computers for NMCI on PAX and how they were classified.

:killingme
 

Gilligan

#*! boat!
PREMO Member
If you want to have that conversation then you should have had the opportunity to talk to the folks that rolled out computers for NMCI on PAX and how they were classified.

:killingme

You've totally lost me.

1. The OP posts a link to a SC news piece about misclassifying people who should legitimately be classified as employees as contractors instead.

2. You claim its done at Pax all the time.

3. I ask for an example.

4, You ramble off on a tangent having to with 'exempt' versus 'non-exempt' employees status which has absolutely nothing..zero..to do with the topic of the news piece that is the subject of this thread.

Good grief...
 

Annoying_Boy

New Member
You've totally lost me.

1. The OP posts a link to a SC news piece about misclassifying people who should legitimately be classified as employees as contractors instead.

2. You claim its done at Pax all the time.

3. I ask for an example.

4, You ramble off on a tangent having to with 'exempt' versus 'non-exempt' employees status which has absolutely nothing..zero..to do with the topic of the news piece that is the subject of this thread.

Good grief...

The people on the roll out teams (deploying the computers, not repairing them) for NMCI (Navy, Marine Corp Intranet) were "independent contractors" according to the ones I spoke with.

They recieved nothing other than pay.

:popcorn:
 

Gilligan

#*! boat!
PREMO Member
The people on the roll out teams (deploying the computers, not repairing them) for NMCI (Navy, Marine Corp Intranet) were "independent contractors" according to the ones I spoke with.

They recieved nothing other than pay.

:popcorn:

OK..so...how many 40 hour weeks did those people spend doing that? If it was the better part of a year doing the same thing in the same place (even the same thing for the same company but in different places) then they could be misclassified.

On the other hand..our IT support guy is a 1099 contractor..and always will be. And as to the 'nothing but pay' part; I pay a typical 1099 contractor (our IT guy included) about twice per hour what an employee doing the same job would be paid and that is typical and largely unchanged in the nearly 25 years I have been in business.
 

Annoying_Boy

New Member
OK..so...how many 40 hour weeks did those people spend doing that? If it was the better part of a year doing the same thing in the same place (even the same thing for the same company but in different places) then they could be misclassified.

On the other hand..our IT support guy is a 1099 contractor..and always will be. And as to the 'nothing but pay' part; I pay a typical 1099 contractor (our IT guy included) about twice per hour what an employee doing the same job would be paid and that is typical and largely unchanged in the nearly 25 years I have been in business.

Some of them spent a lot of weeks, it was a very prolonged project.

:popcorn:
 

Gilligan

#*! boat!
PREMO Member
Some of them spent a lot of weeks, it was a very prolonged project.

:popcorn:

"A lot of weeks" is not in the guidelines, I am sure of that much. I'll have to refresh my memory as to what my accountant considers 'pushing the envelope' in MD with respect to 1099 contractor support. They follow some general guidelines to avoid us getting in trouble with DLLR or Uncle..but I do not kow what they are off the top of my head.
 

Ken King

A little rusty but not crusty
PREMO Member
The whole exempt v. non-exempt topic could take an entire thread..but I was trying to stay within the confines of the OP's subject..which has nothing to do with the 'salaried v hourly' issue at all.
And the employee versus independent contractor debate is pretty much handled under IRS rules. The degree of control and independence of the relationship will determine the appropriate classification. This IRS pamphlet covers it fairly well.
 

Gilligan

#*! boat!
PREMO Member
Sure there is! :whistle:

I did say "that I am aware of"..LOL. We have all our accounting done by an acredited outside firm...and all financial data entry is done my our contracts administrator. I don't even know how to access my own accounting system so I' sadly limited as to what cheating I can do in it.:whistle:

That said...we did once keep everything book-wise in Excell spreadsheets (Lotus 123 actually...i'm old, remember?) but the mess still got sent off at the end of the year to the accounting firm and they never cut us much slack..and still don't.
 

Gilligan

#*! boat!
PREMO Member
And the employee versus independent contractor debate is pretty much handled under IRS rules. The degree of control and independence of the relationship will determine the appropriate classification. This IRS pamphlet covers it fairly well.

Thanks for the link, Ken

I knew the guidelines were vague..and a quick read confirmed that again. The whole "technical services specialist' exception is equally vague and is the one that everyone drives the proverbial truck through.

Like I said..my accounting firm has developed their own more specific 'rules' on 1099 classification that have stood the test of time and challenges; I have to go with them.
 
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