My fiancee has been working at the same job for over three years, which is a "side hustle" where she works 2-5 hours a week depending on the week. This is not her main job, but she enjoys it, loves her clients, and it helps keep her sane. Additionally, though some people might think it's not worth acting on if it's merely a side hustle, she has friends that work here full-time and are in the same exact situation she is. Additionally, in a normal scenario my fiancee would be worried about retaliation, however she's considering leaving the business and I think she might as well correct all these issues on the way out; at the same time, I will admit that my dislike towards the business may be biasing me, which is part of the reason I'm asking for your opinions.
For her first year with the company, she was paid (and taxed) as an independent contractor. Then the business owner sold the business, and the new owner paid her as an employee. Recently the original owner purchased the company back, and now she is being paid as an independent contractor again. Her job duties and her day-to-day activities have never changed. Obviously one of the business owners was wrong. Additionally, I think it may be important that she was considered an employee for two years.
I have checked this IRS website (Understanding Employee vs. Contractor Designation), and I believe she's an employee. I was hoping r/PF could held me decide if she is an employee, and if so what to do.
Without giving too many details, she teaches fitness classes at a gym in Louisiana. The following are all true:
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She is told what her schedule will be for teaching classes, and does not pick her schedule/classes. If another teacher is sick or calls out, she can choose to teach that class as a substitute.
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She is told what type of class she will teach (i.e., kickboxing). She is only told to teach classes that she's certified to teach, of course, but the business owner controls what type of class she teaches without my fiancee getting input into the types of classes she prefers to teach.
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There is no official evaluation system; if people don't complain, the business owner just assumes things are good. That being said, the business owner will occasionally take my fiancee's classes "for fun" however I have a hard time believing she's not being evaluated in those scenarios.
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My fiancee has received all of her training/certifications elsewhere, though the business does offer training and certifications and nearly all other teachers have received their certs from the business.
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All of the equipment used in the classes is equipment purchased and owned by the business, and my fiancee doesn't need to purchase or provide any equipment.
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She has no expenses, reimbursed or unreimbursed. Well, she has to purchase her own gym clothing and shoes, which she tax deducts, but no expenses explicitly for the business.
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She has no opportunity for profit or loss.
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She also teaches the same class at a different gym in the same city, so in a way she's competing with this business. The business owner has made it clear that she doesn't like this, but there are no explicit rules against it and most teachers teach at multiple gyms as a way of increasing their overall pay.
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She is paid per the class, not per the hour. One class typically involves about 20 minutes of planning the class in advance, getting to the gym 10 minutes early to prepare the room, the 75 minute class time, and then about 10 minutes of hanging out afterward talking to students.
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There is no contract, and she receives no benefits (health insurance, etc.).
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This is considered a permanent relationship. We live in a town with a university, so the business owner re-evaluates the schedule every semester and may tell my fiancee that for the next four months she'll teach a different class or on a different day. Despite these changes, it is assumed that my fiancee will continue teaching at the gym without an end date.
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The classes taught by my fiancee and other teachers are a core part of the business. Unlike some gyms that have floors of weights and cardio machines, this gym is exclusively three specially customized classrooms and a shop. If my fiancee and other teachers like her were not performing their services, the business would have nothing to offer customers.
Thank you reading this far. If the business owner is correct and my fiancee is an independent contractor, I appreciate you telling me. If I'm correct and she's an employee, please direct me what to do.
I have found IRS form SS-8 (Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding). Should she fill this out? We also have an IRS office in our city; is this the type of thing that she can just go in to the office and talk to them about?
Additionally, at a state level, I found this Misclassified Employee Assessment from the Louisiana Workforce Commission, and based on the assessment (which clearly isn't binding) the website believes she is misclassified and encourages her to fill out a form on the Louisiana Workforce Commission Fraud Reporting page. Can she fill out the fraud form even if she doesn't know all the information and has to leave some of it blank?
Finally, two last questions:
1) Can I do any of these forms or processes for her, or does she have to do them herself?
2) If my beliefs are correct, should she do these forms and processes on her own, or is she better off trying to get more of the teachers to all do the forms together?
3) Does it matter whether she does the state or federal forms in a particular order, or at the same time?
And finally, if applicable: 4) What exactly is the business owner cheating? Is she cheating my fiancee? Is the cheating the federal/state government? I think this is wrong, but I don't exactly understand what she's doing.
Thank you very much!
Submitted December 09, 2017 at 09:19AM by ThrillingChase http://ift.tt/2yaywgp
