![tito thought he might make more money if his drivers tito thought he might make more money if his drivers](https://pics.conservativememes.com/roses-are-red-baseball-uses-a-bat-according-to-al-63789458.png)
Tito thought he might make more money if his drivers how to#
The pizza shop owner doesn’t tell the electrician how to do the work the electrician gets paid if they get job done and decides how to do it. That person operates an independent business, has his or her own expertise, and comes in to do a contained project, like rewire a kitchen. They often work on an ongoing basis for one company, which controls how they do their work.įor example, a pizza shop might rightfully hire an electrician as an independent contractor. This is sometimes called “payroll fraud” or “independent contractor misclassification.” Under the law, these workers should be employees. Today, many workers legally should be treated as employees, but companies treat them as independent contractors instead. Many people are true independent contractors – for example, independent electricians or accountants who have many clients with whom they have business relationships. Instead of being an employee of the company, you are employed by your own business, or “self-employed.” You’ve probably received a 1099 tax form, instead of a W-2. If a company treats you as an independent contractor, in theory you are operating as an independent business.
![tito thought he might make more money if his drivers tito thought he might make more money if his drivers](https://www.telegraph.co.uk/content/dam/films/2016/11/17/JS72055907adamDriver_trans_NvBQzQNjv4BqytxLMmtfp3sC_cEhhtHl33cs-3D5r45cMks8UdvUJN4.jpg)
That’s why it’s important for workers to know that being treated as an independent contractor has tax consequences – and that bosses are breaking the law when they treat workers who are really “employees” as “independent contractors.” What is an independent contractor? Many of these workers who are filing as independent contractors for the first time may get a nasty surprise come April 17: the tax burden may come as a huge shock.
![tito thought he might make more money if his drivers tito thought he might make more money if his drivers](http://courtweek.com/yahoo_site_admin/assets/images/EXAMINER-Texas_Flag_Flipped.26535153_std.jpg)
As Tax Day approaches, tens of millions of workers have received “independent contractor” tax forms, or 1099’s – and their ranks are growing.