Legal Question in Employment Law in Arkansas

Contractor vs. Employee

I worked for a company from Nov. 04 - May 06. When I began working for them, they had me complete a 1099 and said that I would have to work as a contractor until they had authorization to hire me in the capacity of a Full-time employee. I was fine with this since I needed a job but wasn't sure what it all meant. Well, when it came time to file taxes in 2006, I assumed that I was just liable for the normal taxes but was acutally hit with ''Self-Employment Taxes'' - which are now costing me around $4500. I now have more information about me being classified as a ''Contractor'' by paying me through a 1099. My question is this...due to the fact that they treated me as an employee during those 6 mths. - even going as far as making me clock in and put in requests for sick leave but not providing me with the same benefits as other employees, can they be responsible for any damages - in regards to the additional taxes or even insurance that I was forced to buy on my own at a much more expensive price? It's like they wanted their cake and eat it too. They didn't pay taxes on me or insurance but I was forced to behave as any other employee.


Asked on 5/24/07, 7:57 pm

1 Answer from Attorneys
Alan Crone Crone & McEvoy, PLC

Re: Contractor vs. Employee

Depending on your situation the answer could be yes. There is a very complex formula to determine if a person is an employee vs. an independent contractor. IF the company got it wrong, they may be liable. I would be happy to have my office discuss this with you at no charge. Give us a call 1.800.403.7868

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Answered on 5/25/07, 11:03 am


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