Legal Question in Business Law in Virginia

I work for an employer that issues 1099's and not w-2's. Does this mean I am self employed and have to pay taxes like I am self employed


Asked on 4/29/11, 6:25 am

2 Answers from Attorneys

Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can tell you the following. Many employers try to skirt their tax obligations by issuing 1099's to employees rather than the proper W-2. It means they don't make any contributions to your social security, medicare, etc. - and you are left with paying these and other taxes. supposedly as an "independent contractor." You should contact your local Employment Development or Labor Department to let them know what is happening. They will investigate and take whatever action is necessary to establish your employee status so you avoid the above and the responsibility is placed back on the employer where it belongs. Consult with a good business or franchise attorney in your area for specific advice, but your best bet is to contact your state agency.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 4/29/11, 6:42 am
Michael Hendrickson Law Office Michael E. Hendrickson

Yes, the above is one course of action available to you, but bear in mind

that it could result in the loss of your job at some future stage which you may not necessarily be able to prove as an act of retaliation by your employer.

Virginia is, of course, a so-called employment at will jurisdiction where employees working without the protection of a contract can be discharged without viable recourse for almost any reason that doesn't violate one or more of the protected categories enumerated under federal anti-discrimination laws.

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Answered on 4/30/11, 10:28 am


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