Ask Tax Question

I work for a construction company, a large portion of our "employees" are paid cash and taxes are not taken out. Now that the year is almost over the company owner wants to 1099 all the workers who are paid cash. In every way these workers are employees... the owner tells them when to work, where to work and what the do while they are at work. These workers have no idea that this is the plan and are completely unprepared for this to happen, is it even an option for the owner to do this?

If an owner of a company at anytime can decide that employees are independent contractors then wouldn't all companies do this to avoid paying employee taxes? I understand if the owner wishes to 1099 these workers for 2014 but I do not think it is fair to spring this on them in the last month of the year.
1099 Employees
TaxConnections Members... Answer This Question Want To be One of Our Tax Experts? Register Here

Tax Professional Answers

User Photo
Dean Marzullo
They can go to the state labor board or whatever the agency is named that handles employee issues such as wages and request a classification to determine if they, indeed, are employees.

If they are determined to be employees, then the employer has to remit the social security and medicare portion that he is responsible for, on the wages that were paid. The employees are responsible for their portion. In essence, he has to issue them a W-2.
Leave a Comment 157 weeks ago

Meet Leading Tax Advisors

User Photo John Stancil

Lakeland, Florida, USA

Tax Advisor/CEO

User Photo Peter J. Scalise

New York, New York, USA

Federal Tax Credits & Incentives Practice Leader

User Photo John Dundon, II EA

Denver, Colorado, USA

Tax Director

User Photo Steven Potts JD EA IAR

Fullerton, California, USA


User Photo Caran Ebert, CPA

Topanga, California, USA

Tax Advisor

User Photo William Rogers, CFP, MBA, EA

Rancho Santa Fe, California, USA

CEO/Certified Financial Advisor

User Photo Randy Tarpey

Tyrone , Pennsylvania, USA


User Photo Lisa Nason CPA, MST

Greenville, South Carolina, USA

Managing Shareholder

User Photo David Hughey, EA, MAcc

Longview, Washington, USA

Tax Consultant/Tax Advisor


Santa Clara, California, USA

Tax Principal - President

User Photo Hugo Van Zyl

Stellenbosch, South Africa

Exchange Control & Master Tax Practitioner (SA)

User Photo Douglas Stransky

Boston, Massachusetts, USA

Tax Partner, International Tax

User Photo Chad Hatalla

Rheinfelden, Switzerland

Senior Tax Manager

User Photo Larry Stolberg, CPA, CA

Toronto Mississauga Oakville Burlington Hamilton, Canada

Tax Specialist

User Photo Dr. Daniel Erasmus

West Palm Beach, Florida, USA

Managing Partner/EMEA

View/Select our Current List of Tax Topics

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Previous PageNext Page

Contact Us Today