re: Question about defining an employee as a "independent contractor"

Might want to make sure your nephew wasn't partaking in the "benefits" of filing as self-employed. I.e. deducting mileage to work, tools that he may of mostly bought for home use, ect. If he sues claiming he was an employee then his previous tax returns may be looked into by the IRS.




A lot of small companies do what this company did. As long as your neph knew what his pay was and that he was considered a contract then I honestly don't have a problem with company. And I assume he was aware of the situation since he worked for them for 10 years. Maybe he's mad and wants some sort of revenge against the co.