Thursday, September 10, 2009

What To Do, What To Do.............

1. The IRS has ruled that Independent Contractors of CTG are actually employees.

2. You won't "roll over" and accept that IRS ruling based on the fact that you "modeled" CTG after another company who found favor with the IRS YEARS ago. I've read that ruling. I'm very sure that there are far less than 30% of this industry paying by 1099 in 2009.

3. You signed under penalty of perjury that you paid me 50% of the base of every job I did, plus 100% of the gratuity, yet the pay records show that you paid me $17.00 per job, plus gratuity (it was a couple dollars higher if it was a farm-in) - but those companies that farmed-in charged MUCH higher, and 50% of THAT base is substantially higher than what you paid me.

4. If I received 50% of the base of every as-directed, plus gratuity, you owe me a heck of a bit o'change. I was paid $10.00 per hour for as-directeds, plus gratuity.

Look at it this way:

Client J is billed for 6 hours at a cost of $300.00 for the base.

I am paid $60.00 instead of $150.00, leaving a balance according to your agreement with me of $90.00.

How many of those as-directeds are we talking about?

5. The issue becomes do you fight the IRS ruling or pay the taxes to the tune of God knows what? If you're going to stick to your guns that we were Independent Contractors, get out your calculator and figure out the base of every job I did and pay me what you owe me.

And have a great day!

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