Ask Experts Questions for FREE Help !
Ask
    62fender's Avatar
    62fender Posts: 5, Reputation: 1
    New Member
     
    #1

    Jan 28, 2009, 08:06 AM
    Hourly employee deductions withheld, no pay stubs, 1099?
    Hi,
    I was employed at a small shop in New Jersey for the last 4 years. My co-workers and I were all hourly employees being paid by check through a payroll company (ADP).
    Tax, SSI, UED, Med, IRA, dedections were all recorded on our pay stubs.

    In March 2008, our employer stopped using the payroll company and started paying us with his own company checks. These checks were written out for our net amount (after deductions), but pay stubs were not provided despite repeated requests by several of us employees.

    In July 2008, the company went back to using the payroll company, and stubs showing our deductions were once again provided. The year to date earnings on our stubs however are now missing 4 months of earnings. Anonymous calls were made to the Dept. of Labor, and they came in to investigate. They were not shown these company checks.

    Our employment has now ended, and I applied to collect unemployment. We apparently are not entitled to the full benefit because of these missing wages. I recently called my former employer to confront him about not reporting our wages, and he told me we're all getting a 1099.

    I filed an appeal with N.J. Unemployment, as well as a formal complaint to Department of Labor.

    My question is...

    Can he do this? Is it legal?
    Thank you in advance,
    62fender
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
     
    #2

    Jan 28, 2009, 08:16 AM

    Are you saying that he changed you from employee status (W2) to independent contractor (1099) without your knowledge but the checks remained in the same amount with a deduction for SS?

    If he subtracts SS you're an employee, not an independent contractor so I'm confused.
    62fender's Avatar
    62fender Posts: 5, Reputation: 1
    New Member
     
    #3

    Jan 28, 2009, 09:59 AM
    Quote Originally Posted by JudyKayTee View Post
    Are you saying that he changed you from employee status (W2) to independent contractor (1099) without your knowledge but the checks remained in the same amount with a deduction for SS?

    If he subtracts SS you're an employee, not an independent contractor so I'm confused.
    Thank you for your quick reply! :)
    In a word, Yes.

    The hand written checks for that 4 month period (March, April, May, June), were for the net amount, as they would be with after all deductions withheld (including SS).
    The problem is that we were not provided with stubs showing these deductions for that 4 month period.
    Also, he never paid these "withheld" deductions for that 4 month period in to the proper places: SS, Unemployment, IRS, STATE, or FED.

    He did not report any of our earnings from this 4 month period at all. My year to date earnings are missing approximately $20,000.00 for 2008. I found this out when I went to collect unemployment. I haven't received a W2 or 1099 yet.

    I was an hourly employee the entire time I was employed there, and was never approached about becoming an "independent contractor". In fact, every time we asked about the "missing" year to date earnings on our paystubs (after we went back to the ADP checks), we were told, "oh yeah, I gotta have them updated".

    Now I'm told by this clown, that he's 1099'ing all of us. We were all permanantly laid off due to business closing.

    Thanks again
    62fender
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
     
    #4

    Jan 28, 2009, 10:58 AM
    Quote Originally Posted by 62fender View Post
    Thank you for your quick reply! :)
    In a word, Yes.

    The hand written checks for that 4 month period (March, April, May, June), were for the net amount, as they would be with after all deductions withheld (including SS).
    The problem is that we were not provided with stubs showing these deductions for that 4 month period.
    Also, he never paid these "withheld" deductions for that 4 month period in to the proper places: SS, Unemployment, IRS, STATE, or FED.

    He did not report any of our earnings from this 4 month period at all. My year to date earnings are missing approximately $20,000.00 for 2008. I found this out when I went to collect unemployment. I haven't received a W2 or 1099 yet.

    I was an hourly employee the entire time I was employed there, and was never approached about becoming an "independent contractor". In fact, everytime we asked about the "missing" year to date earnings on our paystubs (after we went back to the ADP checks), we were told, "oh yeah, I gotta have them updated".

    Now I'm told by this clown, that he's 1099'ing all of us. We were all permanantly layed off due to business closing.

    Thanks again
    62fender


    Three words - Wage and Hour. Maybe a fourth word - Complaint. :D
    62fender's Avatar
    62fender Posts: 5, Reputation: 1
    New Member
     
    #5

    Jan 28, 2009, 11:30 AM
    I cannot thank you enough!!

    I feel so much better now, knowing this sounds to be something he cannot do legally, and get away with.

    I did contact the Department of labor, and have filed a formal complaint.

    I included copies of some of the hand written pay checks I deposited I was able to get from my bank. I couldn't get them all because the ones that "bounced", I had to give back to him and receive the cash equivalent of the check in return (also net amount). These checks when compared to the ADP checks, should prove the amount was net pay.

    I also included:
    Copies of my W2's from 2006, and 2007
    Paystubs from my ADP checks
    A copy of a signed and dated letter my former employer had faxed to my mortgage co. showing my "correct" year to date amount as of September 2008.

    I hope it's enough. I'll let you know the outcome.
    A huge thanks again,

    62fender
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
     
    #6

    Jan 28, 2009, 11:36 AM
    Quote Originally Posted by 62fender View Post
    I cannot thank you enough!!!

    I feel so much better now, knowing this sounds to be something he cannot do legally, and get away with.

    I did contact the Department of labor, and have filed a formal complaint.

    I included copies of some of the hand written pay checks I deposited I was able to get from my bank. I couldn't get them all because the ones that "bounced", I had to give back to him and recieve the cash equivelent of the check in return (also net amount). These checks when compared to the ADP checks, should prove the amount was net pay.

    I also included:
    copies of my W2's from 2006, and 2007
    Paystubs from my ADP checks
    A copy of a signed and dated letter my former employer had faxed to my mortgage co., showing my "correct" year to date amount as of September 2008.

    I hope it's enough. I'll let you know the outcome.
    A huge thanks again,

    62fender


    Come back and let us know how this works out - I'm always amazed by employers who think they're above the Law.

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!

Salary hours vs hourly employee [ 6 Answers ]

Is there a difference between the hours that a salary employee works? Hourly is from 8-9 and salary is 40 hours (does not matter what time frame)?

Hourly employee loses hours [ 1 Answers ]

If an hourly employee is required to attend a training session and the session ends earlier than their normal work day hours, what is normal pay practice; pay them for their normal work day hours or only the hours they attended the training session?

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?

Can I Take An Employee from Salary to only Hourly [ 1 Answers ]

We have an employee who exhausts her salary pay by only getting less than lets say 32 hours or more sometimes a week. She is nonexempt and gets overtime for anything over 40 hours. She has assistance on the overtime and never does it alone. Can we change an employee from salary to hourly only.


View more questions Search