My Sister Needs Advice...

[kellyg403]

He is what is called a Statutory Employee. It's quite common, and nice for contractors so they don't have to come up with ALL of their FICA. He would also not be covered under workman's comp. If the OP's BIL is a contractor or a Statutory Employee, it wouldn't matter if the injury happened at work or home, there is no work comp, LEGALLY, and his regular insurance would just pay. They will get the letter, the insurance company will investigate to see if it falls under work comp, and rightly so. They will find he is a contractor and they will pay the claim. Even in larger companies that are privately owned, the owner has work comp on his/her employees but owners are not covered under work comp.

Thank you! That is exactly what he is! He has done this for 24 years, long before I met him, so most aspects of his business I don't know the details to. I pay in taxes to fed/state. We pay quarterly and have not had any trouble, so I kinda lean in to the accountant and my dh. I trust dh because he is meticulous in his record keeping and he is not one to try and deduct anything. It took his accountant 3 years to convince him his cellphone is a work related expense and he could deduct it! Dh is very conservative when it comes to the IRS. I have no idea re: workman's comp for my dh. I do know that we have to a large insurance policy that covers only the 'business' in case someone gets injured in his truck or while he is working. We actually have to have the policy protection for him to work.

OP, maybe your sis DH is a statuatory employee and the taxes being taken out are for the FICA taxes. Even without a W2 his paycheck stubs should reflect where the money was taken. Hopefully this will all work out in the end and it doesn't seem as bad tomorrow!

Kelly

 

[LindaG4458]

No need to hire an attorney for the tax stuff. Just report the facts to DOL and IRS. They will do the rest

I know this because I do accounting for a small company who did this exact same thing. He got reported and he has to pay the back taxed with penalty and interest.

I didn't start working for him until after the mess occurred.

I also worked as an accountant for a company that had been (before I worked there) withholding taxes and not paying the IRS (they intended to pay it before the end of the year).

After having to pay the taxes and a substantial penalty they had to send the tax withholding directly to the local IRS every week for at least a year. They never tried that again, especially since I told them I wouldn't do it.

 

[happygirl]

Plenty of happily married people keep seperate bank accounts. It isn't always a red flag for trust issues. I've even heard that some wild and crazy women don't take their husband's name when they marry .

I don't agree about the seperate bank accounts at all. To me that shows a lack of trust.

 

[kellyg403]

I don't agree about the seperate bank accounts at all. To me that shows a lack of trust.

Dh and I have separate bank accounts but a combined one for household. I trust him, but because of life experience money is a an issue that we both have a tendency to disagree on. Separate accounts for us had nothing to do with trust, but more our view and outlook on spending was a little different. He likes to do things one way and can be pretty darn cheap. He thinks if you get something at Walmart on sale it will last forever. I prefer to buy things on sale, but better quality so that do last forever. He would practically have a seizure when he realized I paid 100.00 for a jacket for dd. She was 15 and 4 years later that coat like brand new. We tried the one account for 2 years and the stress of arguing of things that didn't really matter caused us to look at options that would keep us in a place where we appreciated each other's differences. Trust me, he had no problem buying things he liked, so we just had to go about things differently. I trust him to know what he likes and what he can afford. He trusts me to know what I can afford and like. We just think differently on what that is sometimes.

Kelly

 

[beaucoup]

I can't help with your sister's DH's problem, but boy does this remind me of my last employer. They were taking my retirement contributions out of my paycheck, but not depositing them to my retirement account. They were using the money because the company was having difficulties.

I caught it after 4 months of this going on. I was livid. Told all the employees. Called boss on it & demanded it get deposited. I sure kept an eye on him after that. And then I got out of there not that long after.

 

[TinkPirateMom]

Plenty of happily married people keep seperate bank accounts. It isn't always a red flag for trust issues. I've even heard that some wild and crazy women don't take their husband's name when they marry .

Agreed