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To: Lizzie Tudor who wrote (53966)5/5/2003 6:42:04 AM
From: JDN  Respond to of 64865
 
Dear Lizzie: As you know I have been retired for some time but my recollection is that the IRS was concerned that companies were "calling" people independent contractors when "in fact" they were nothing more then employees in an attempt to avoid the SOCIAL SECURITY TAX not income taxes. Perhaps that is what you are referring too? jdn



To: Lizzie Tudor who wrote (53966)5/5/2003 7:34:25 AM
From: John Carragher  Respond to of 64865
 
"Apparently somebody somewhere said taxes weren't being paid"

I would expect this in the IRS who are advising the corp. people. I ran across this back in sixties, and eighties. We had people who would act as per diem or contractors and want to be billed directly... The IRS sent out letters to corporations during those times as to not put per diem or small outside jobs, software.. as a bill direct to contractor. In other words put them on the payroll and collect soc, sec, retirement. fica? fed and state taxes. etc. or make sure they have an employer id number.
I did taxes for a low income person this year and was quite surprised to see she was treated as an outside contractor working for handicap.. She ended up paying the corp part of soc sec tax.. What an outfit.. I got forms from irs to protest status but the person didn't want to file the form.
overall gross income was $9000. I wonder how many people they are contracting with to avoid paying the soc sec. etc.