Legal Question in Business Law in California

Contract Worker Vs. Employee

I received a letter from the city stating that I needed to register my business due to my tax information for 2005. To try to put it in a nutshell, I have been working for an employer who started out paying me as a contract worker, though I was an employee according to the definition of contract worker; I was told what to do, how to do it and when to do it. My tax preparer told me that this wasn't illegal, though extremely unethical and since I wasn't running a business couldn't deduct as such, i.e. purchasing supplies or tools.

My question is how do I convince the city that I never did nor do now own a business? I am currently an employee of said employer.


Asked on 1/22/08, 1:30 am

2 Answers from Attorneys
Jonas Grant Law Office of Jonas M. Grant, A.P.C.

Re: Contract Worker Vs. Employee

If you filed a schedule C as an independent contractor, then the city - each one has different rules - probably considers you to be self-employed and therefore subject to their business license law/registration/tax. Tax preparers should not be dispensing legal advice, or attempting to do so. You could probably convince the city if you report your employer to the state for failing to pay you wages properly and pay/deduct payroll taxes from your check - you could start by asking the city in question if this would do, and then decide if you want to follow through.

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Answered on 2/01/08, 6:59 pm
Jonas Grant Law Office of Jonas M. Grant, A.P.C.

Re: Contract Worker Vs. Employee

PS - This should have been asked under EMPLOYMENT LAW for faster responses.

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Answered on 2/01/08, 6:59 pm


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