Employer dumping the taxes on employees.

hello mel,
My mom used to work for a nail salon that is a franchise of many. when she started working there about 5-6 years ago, she had received a W2, what ever she made 40% goes to the shop, a year or so back they made here start claiming 1099 tax form, and still had to give the shop 40% of her earnings, recently they requested her to obtain a license to "rent a booth" in their shop; meaning that she's her own boss. the shop still wants her to cut them 40%, i was just wondering if that is violating any labor or tax laws, i believe that it is unfair treatment of employees. i believe that this employer is tax evading, and trying to dump the load on the employees.

1 answer  |  asked Apr 29, 2008 10:47 PM [EST]  |  applies to California

Answers (1)

George Allen
Independent Contractor

If your mother is truly an employee, rather than an independent contractor, her employer is violating the law. Catergorization as an employee or ind. cont. is very fact-specific. Your mother should review her situation with an attorney who has experience in this particular area.

posted by George Allen  |  Apr 30, 2008 12:32 PM [EST]

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