I quit the restoration shop.

Not exactly thrilled, but it had to be done.

Just in case anyone else is in a similar boat, if you've been working under a 1099 on a single source of taxable income, the IRS isn't gonna hit your employer, the Department of Labor will, to the tune of fines that can easily exceed a home mortgage.

http://www.dol.gov/whd/workers/misclassification/

$5,000 to $25,000 max penalty per employee, per year for having an employee on a 1099 when they only qualify for a W2.

After talking with a group of tax preparers and the IRS, I found out that it's $5,000 the first time and it multiplies, across the board, with each reported 1099 form.

1 employee @ 1 year = $5k
1 employee @ 2 years = $10k per, $20k total in fines
2 emloyees @ 2 years $20k per, $80k total in fines

It adds up quick.

At the rate I've been there, along with friends who worked there, the penalties for my employer exceed $250k.

So, if you've been at the same job, with only one source of income, beware. They aren't screwing around with this. I'm not at risk, but I'd put my employer at risk if I continue working there. Even if I were put on a W2, it would still raise a red flag with the IRS and the DOL would get the misclassification task force involved.

If you are an actual independent contractor with multiple sources of income, you can be on a 1099. If you have been punching a clock at one place, you should be on a W2.

Just a heads-up. This **** cost me my job, so I thought I'd pay it forward to the automotive industry folks, here.

Dave