My son is currently employed by a used car dealer here in Columbia, SC. He is a paint and body tech and works in the shop repairing and painting cars which the dealer sells. He was hired about 3 months ago, and they told him that his pay would be $350.00 a week for a 40 hour work week, and no taxes would be withheld. He gets paid every week and on his paycheck it is noted as "Casual Labor". So I guess he is considered a contract worker, even though there is no contract and he just follows instructions each day as what work to do. My question is: can they pay him this way indefinitely, or is there some time limit? He is concerned that he will get a 1099 and have a bunch of tax to pay. It just doesn't seem right that they can work him indefinitely and not be required to withhold taxes from his paycheck.

He will definitely get the 1099 at the end of the year and he will be responsible for his taxes as none has been taken out of his paycheck by the party hiring him to do the work. And yes, they can keep paying him as "casual labor" indefinitely. He is not an employee. He is basically an independent contractor. Tell him about the taxes NOW before he owes a bundle at tax time next April.

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Originally Posted by twinkiedooter

He will definitely get the 1099 at the end of the year and he will be responsible for his taxes as none has been taken out of his paycheck by the party hiring him to do the work. And yes, they can keep paying him as "casual labor" indefinitely. He is not an employee. He is basically an independent contractor. Tell him about the taxes NOW before he owes a bundle at tax time next April.

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Thanks for your input. Then if they can continue to call him an independent contractor indefinitely, what would it take for him to be classed as an employee? Would it be worthwhile to file a SS-8 with the IRS?