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.
Answers (1)
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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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