If a company reclassifies my employment status am I then entitled to lost benefits?

Question Details:

Worked for 2.5 years as "independent contractor". Let go. Then company reclassified me as employee when IRS got involved. I worked full time for 2.5 years as a manager for a magazine. They refused to bring me on-staff. I received no health benefits, paid vacation time or sick days; no 401k. When questioned about me by the IRS, 2 years after I was let go, they abruptly reclassified me as employee. Since I left job in '07 is it possible to recoup any of the benefits I lost?

Asked 11/2/2009 under Employment and Labor | 136 View(s) | More Legal Topics

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Employment and Labor Law Answers

It's quite possible that the company might have to compensate you for those benefits.  What I think is much more likely, is that you may be able to get back the taxes you paid for them.

If you were obeying the law while an "independent contractor," you were getting a Form 1099 (instead of an employee's W-2) each year, and filing your federal income taxes as self-employed, using Schedule C.  You had to pay the "self-employment tax," which is mostly what the employer's contribution for Social Security and Medicaid taxes would have been if you were being paid as an employee.

Please don't assume this is the case, unless you have gotten "amended" W-2's from the company for those years already.  You will need those, to file amended income tax returns for your refund.  I think having a CPA or other tax expert's help would be a very good idea on this, to avoid a costly mistake.

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