Legal Question in Employment Law in New Jersey

Denying W2 Employment

I have been working on contract (1099) through the same company for the last 2 years. For personal reasons, I have requested the same company to offer me employment on W2 instead of continuing on 1099. The company is refusing to take me on W2 and is continuing on 1099.

My question is, can the company refuse W2 employment and insist on continuing on 1099?


Asked on 9/14/04, 6:08 pm

1 Answer from Attorneys

Alan Albin Alan S. Albin, Attorney at Law

Re: Denying W2 Employment

You need to consult with an attorney as soon as possible. When you say you are a "1099" employee, presumably, you mean that your employer is not withholding state or federal taxes, or FICA (social security taxes). The fact that you may have a written employment contract does not by itself make you an "independent contractor" rather than a "W-2" employee.

There are a number of factors which the IRS uses to determine whether you are an "employee" (i.e. subject to withholding) or an "independent contractor" .

Some of these factors are: Does your employer exercise control over the performance of your job functions? Do you have a specific place of employment where you do your work? Do you have regular hours? Do you have other employers for whom you also are a "contractor"? How many hours per week do you work for this employer? Etc.

The IRS tends to lean strongly on the side of considering persons in the "gray zone" to be employees rather than independent contractors.

An employer is not permitted to fail to follow the laws governing withholding of taxes simply by designating an employee an "independent contractor" and providing a 1099 (rather than a W-2).

I strongly recommend that you consult with an attorney immediately so that you can explore your legal rights, obligations, and options. If you wish to discuss retaining my services, contact me at:

[email protected]

(973)-605-8995

[Disclaimer: The above comments are not intended as nor should they be relied upon as "legal advice", which can only be obtained by personal consultation with a retained attorney; at which time the specific facts and circumstances of your case can be thoroughly evaluated. This reply is provided for general informational and educational purposes only, and does not create an attorney-client relationship with the responding attorney.]

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Answered on 9/14/04, 6:23 pm


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