Why does my employer say that its better for me to work as an independent contractor?

 

A:

If your boss tries to tell you that you are better off working as an independent contractor (IC) in Houston, even though you have been working as an employee of the company for years, you might want to investigate the motivation behind trying to get you to switch.

You may currently be working a number of overtime hours, which can accumulate into a lot of extra money since you should be paid one and a half times your normal hourly rate for the hours over 40 worked in one week, according to the Fair Labor Standards Act. As an employee, you have probably also noticed deductions on your paycheck, since your employer is required to withhold your federal, state, and Social Security taxes, among others. While it may not be so fun to look at now, at least you do not have to worry about paying a large sum at the end of the year or once a quarter.

However, that could change if you allow your boss to deem you an independent contractor. Tax withholdings could possibly be part of the motivation to try and get you to make the switch, since employers are not required to pay a payroll tax for ICs. Also, they are not required to pay overtime.

So who does it benefit more – you or your employer?

If you have been told by your Houston employer that you’re now considered an independent contractor, contact the fair wage lawyers at Kennedy Hodges immediately for a free case review at 888.449.2068.