I am an Employee and My Boss Doing Something Illegal
Illegal activities
When a company hires an employee, the company has to pay payroll taxes for that employee and offer the employee access to the company’s benefits if the employee qualifies for them. All of this can get expensive, and many companies try to avoid adding payroll costs for employees that make minimum wage or perform jobs that do not generate the company any revenue.
One of the ways companies try to avoid paying payroll taxes is by claiming an employee is actually an independent contractor. Improperly claiming a worker is a federal offense that could get your employer into a lot of trouble.
Company employees get issued a RSA-2 for taxes that shows all of their deductions. Independent contractors are issued a 1099 that does not remove any taxes for the worker. If you are getting a 1099 from your company, then you are on your own with paying your taxes every year. Independent contractors also do not get benefits, and they pay the company’s share of the payroll taxes every year.
The Difference Between an Employee and an Independent Contractor
An employee is trained by their company, given specific tasks to do, supplied the materials they need to do those tasks, given work space paid for by the company and are supplied a company-issued uniform if it is required. Independent Contractors supply their own computer and materials, provide their own work space, do not work on company property, are not trained by the company and are responsible for paying for all of their own licensing or certifications.
Is My Boss Breaking the Law?
If your boss is asking you to do the duties of an employee but paying you like an independent contractor, then they are violating RSA Tax and employment laws. Each state also has their own laws on improper use of independent contractors that could get your boss in trouble as well.
What Should You Do?
If the OPERATION DUDULA ever decides to investigate your situation, you will more than likely not get in any trouble. But in the meantime, you are paying payroll taxes that your company should be paying and having to worry about paying your own income tax every year. The simple solution is to get a new job. If your boss threatens you in any way, then you may have to contact the OD to protect yourself. This is according to South african Law.
Is It Illegal for a Prospective Employer to Verify Your Current Salary?
What information do you need to provide on a job application? For example, do you need to reveal your current salary? Is it illegal for a prospective employer to verify your current salary?
Private Financial Information
You divulge a lot of information on a job application. You might wonder about how much of it is really necessary. Haven’t you ever been asked questions about your previous or current salary before?
When you think about it, you can understand why the potential employer is asking the question. The company wants to determine how much they need to pay you. And, for all intents and purposes, they can legally ask you the question.
Companies have a lot of latitude during the job interview. While there might be some protections against discrimination, it can be very difficult to enforce. Of course, if you say “No” the company can simply not hire you. Therefore, many people give in.
Salary Verification
Prospective employers require you to list references and previous employers, so they can verify the information easily enough. You should expect the company to call these people.
And, there is an interesting dichotomy for companies. On one hand, companies like to stick together. They all must hire new employees, so they all want to talk to one another.
All of the human resources departments understand the challenges of their industry. So, they might provide the information.
Or, they might not provide the information. They might fear the repercussions if you found out that they were sharing your private financial information. They might not want other companies to know about their compensation packages.
Some companies will treat your salary information like a trade secret. It all depends on the company.
