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    nmc9264's Avatar
    nmc9264 Posts: 1, Reputation: 1
    New Member
     
    #1

    Aug 21, 2013, 09:49 PM
    1099 vs. Employee Fines?
    What are the fines, imposed, when it's determined that an employee is legally an employee and not a 1099 contractor in the state of Michigan?
    ScottGem's Avatar
    ScottGem Posts: 64,970, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #2

    Aug 22, 2013, 03:22 AM
    Since this is a federal issue, its not governed by state law:

    What Can Happen If a Worker is Improperly Classified?

    If you improperly classify an employee as an independent contractor, you can be liable for:

    additional state and federal income taxes
    unemployment insurance penalties
    workers compensation penalties
    lawsuits by workers for unpaid wages
    criminal fraud

    Frankfurt Kurnit Klein & Selz PC

    There are no set fines, its handled on a case by case basis.
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
    current pert
     
    #3

    Aug 22, 2013, 04:29 AM
    If you are the employer, your best bet is to hire an ex-IRS agent to help you out of the mess without paying whopping penalties. There are many of them who specialize in this subject.

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