I work for a small business and I file taxes as a subcontractor. I've worked for them for almost a year. I've been told that what they are doing taxes and business wise is illegal. Is this true? How long can they keep me as a subcontractor before they have to put me on payroll? I sell parts for them from there shop and I answer the business telephone and take orders over the phone. Can someone help me?:confused:

It is not the matter of time to determine you are an employee or an independent contractor.

In order to be treated as an independent contractor, you work on a project bases. You need to provide your own tools, make you own daily decisions, provide your own materials, make products and services.

Sounds like you are working as an employee but your boss wants to treat you like a contractor. If so, then it's illegal. The state Dept. of Employment Security is one of the agencies that in charge of these matters.

If you are a commission or contract employee you can do so forever, In that you are not a employee. You can work either for a contracted amount for providing certain services, for example companies contract out the janitorial services of most larger business, Almost all sales people in insurance companies are all 1099 workers on commission

If you punch a time clock, and paid hourly and have a boss who schedules your work and time, then you well may not be.

Part of the independent contractor, you should be receiving a much higher amount of money than ahourly worker since you have to pay your own taxes, including all for yourself employment taxes ( social secuirty) and you have to provide all ofyour own insurance and you are not covered by their workers comp insurance and you are not covered for unemployment either.