Ask Experts Questions for FREE Help !
    nmc9264's Avatar
    nmc9264 Posts: 1, Reputation: 1
    New Member

    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: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man

    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

    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.

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

I am a W- 2 employee and make a small amount as a 1099 employee. [ 3 Answers ]

I am currently a W- 2 employee and also make a small amount as a 1099 employee. If I get laid off from my w-2 job will I be able to collect any unemployment? I am located in Maryland. I made less than 3,000 at my 1099 job last year.

Employee with W-2 and 1099? [ 3 Answers ]

Owner of a company received the money for the office rent. Does he have to received 1099?

Working as a w-2 employee and a 1099 employee at the same time [ 2 Answers ]

Can you work for the same employer at the same time as a w-2 employee and a 1099 employee at the same time. Example selling insurance at an agency getting paid on w-2 for the clerical work and 1099 as for the commission on sales of the insurance from the same desk?

View more questions Search