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Mississippi Delta | Yes and Yes.
First, by treating you as an independent contractor, he has escaped federal and state unemployment taxes and half of your social security and medicare taxes.
Secondly, treating you as an IC is much easier from an administrative standpoint. He doesn't have to file futa/suta, income/ss/medicare tax withholding forms, etc. It is common for farmers to treat "employees" as an IC and gross up their wages for the difference in taxes. In the farmer's mind they have essentially paid the employee's share of taxes through a higher wage, however, this is not the correct way to do it under the tax code. | |
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Employee Compensation
