Has anyone experienced firms that cycle through new employees*?
I recently worked at a small firm consisting of the principal, myself, and another intern. I worked there for a year and a few months before being let go due to my "slipping performance". Initially, I was hired part-time for peanuts with the idea that after 3-6 months I would be brought up with better pay and benefits. Part-time status turned to full-time (40 hours) after a week.
For the first six months I worked very hard. I frequently worked over forty hours a week; even coming in on weekends if necessary. There was never any overtime pay. I was given a slight raise, but no benefits. Soon after, another intern was brought on board. They too began on a part-time basis, but unlike myself, did not begin working full time for about a month. This person had a B.S. Arch and started out as a strong employee. Within a few months however, this employee began calling out sick. It was an almost frequent occasion as they would conveniently feel sick around deadlines. In the short time they were there, they managed to miss more than a week's worth of days, often left early due to feeling ill, and rendered themselves useless for a couple days when they accidentally disabled their computer. Needless to say, this person was not the easiest to work with.
At my year review, I was informed my main issues were tardiness (I admit I came frequently came in 5-10 minutes late) and that my performance had dropped in recent months. Since it was small, the principal was out of the office, on average, 3 days a week for meetings, site visits, etc. I was required to work independently; often having to create relevant work for myself as the principal could not always inform me of specific tasks. This worked sometimes, specifically when it came to producing objective work - construction documents, schedules, spec. sheets, etc. Other times, when given an open ended design problem, or drawings to do with no given parameters, I tended to take more time and produced little by the end of the day, often due to lack of direction. Despite the negative comments, the overall review was good. I was praised for my reliability, composure during pressure situations, and ability to consistently meet deadlines. At the end of the review, I was given a slight raise and the conversation briefly touched on the placement of benefits. I left the review feeling positive that I was given constructive feedback and that my career was finally getting started.
Two months later, I was no longer tardy, still working as hard as I could. However, I was still failing to design as efficiently independently as my boss expected of me. And so, on the basis of my declining performance, I was released from the firm. My now former employer citing that we should "take a break". The principal assured I was a smart, hard working, and "one of the most reliable people to ever work" for them. They even offered career counseling and aid in my future job search. I was gracious and calm in my exit. Deep down, I was bewildered, confused, upset, and angry. Was my performance THAT bad? If so, then why was the other employee not let go too?
I have since come to see this as a blessing in disguise. I did learn a lot in my time there, as the principal took time to teach me about construction and architecture as a business. However, I am very pleased to no longer be working with that coworker and feel I have a matured and refreshed outlook on my career.
Recently though, through the power of Facebook, I found that a person I have a mutual friend with, is now *employed* at my former firm. This person is two years younger than myself and with less experience. It is important to note that when I came in for my interview, there was another intern there. I was excited to see that I would be working with young, growing office. However, when I began working, I was told that the former intern was let go.
Does this firm squeeze the juice out of young employees* and then hire new ones? Is this common among architecture firms/small businesses? Excuse my naivete, but I hope this practice is not common. If so, all I can do is hope that I don't work for another firm like it.
* I note employee because I have recently discovered that I was a misclassified 1099 when I filed for unemployment. I'm sure the others who work there are also misclassified. Again, please excuse my naivete, but I thought it was common for businesses to pay employees on 1099 until they became "full-time" employees. I am unsure as to what will happen now. Last I spoke with the unemployment office, they said they were investigating the situation. It seems like the government is on my side. Anyone have experience with this?
Thanks for taking the time to read this long rant. Archinect has always been a supportive and constructive community for me.
Ooooh, boy. You were "misclassified" 1099? No, that was not a mistake - this employer is a douche who abuses young interns. This *does* happen all the time and thank god there are forums like this where people can talk to others and come to realize how they were mistreated.
Contact your friend who works there and tell them to be aware they are probably going to owe a lot in taxes, so either get out now (the smartest thing) or at least start setting aside money to pay the taxes they right now assume are being paid by the employer. Report the employer to the unemployment office and the Secretary of State for misrepresenting the terms of your employment - if you were not clearly made aware that you were working as a contractor not an actual employee, that means this person was either pocketing your unemployment and SS or not paying it at all. Reporting them probably won't do you any good, but at least will put the employer on notice that they are doing something illegal and they can't keep doing it.
Sorry you had to learn this the hard way - but at least you DID learn a lot while there, that hopefully will help you avoid this kind of shitty situation later.
When oh when will our profession start teaching ethical behaviour along with decent business practice?!? This kind of employer in our field is SO common.
Jan 13, 12 7:17 am ·
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OneLostArchitect
I was an abused 1099 worker getting paid minimum wage after graduating with my masters. $7.50 an hour and getting hit with a 1099. I was making more at Starbucks! I was desperate to get my IDP done so yea there was that. Now with minimum wage increasing almost every year, I don’t see my salary increasing... Soon the kids at Tim Hortons will be making more than me!
While the IRS probably won't care, the state very well might. You could complain that you were in reality a full time employee and that your employer did not pay the required withholding taxes and unemployment and compensation insurance that is required by law.
This would put the SOB on the hot seat with legal authorities that have the power to seize assets.
Jan 13, 12 11:28 am ·
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archanonymous
Been there, done that.
Dec 4, 18 9:28 am ·
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Yep, sounds pretty normal to me. Architecture sucks, yo!
Is it my moral responsibility to warn the other interns working there? A part of me feels like I should. But at the same time, I honestly don't want anything to do with that firm anymore.
Are there any steps I need to take in order to inform the IRS of my misclassification. I immediately filed an unemployment claim the week I was let go. They soon followed up with an examination of my claim and determined I was misclassified. I was then told that I needed to present them with the my gross quarterly earnings and the firm's tax ID (for which there is none). It has been a few weeks since then, and they are still investigating the tax ID situation. I'm sure it's simply a bureaucratic nightmare down there, but does anyone have insight as to what is going on? Do I need to fill out/file/apply for anything in particular?
In NY the worker's compensation board is extremely aggressive. I'd go after them as well as the state and federal tax authorities. Failure to pay withholding tax is a crime.
9.01 STATUTORY LANGUAGE: 26 U.S.C. § 7202
§7202. Willful failure to collect or pay over tax
Any person required under this title to collect, account for, and pay over any tax imposed by this title who willfully fails to collect or truthfully account for and pay over such tax shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, be fined* not more than $10,000, or imprisoned not more than five years, or both, together with the costs of prosecution.
In these days of low tax revenue, collection agencies are even more aggressive than usual.
When you started work, did you sign any kind of "contract" that would have made you an independent contractor instead of a salaried employee? Seems to me if you were there full time for over a year, the authorities are going to deem you an employee and not a subcontractor. He has a problem.
Were you paid with company payroll type checks with pay stubs? I hope you kept them. What do they show? If they show that he was witholding Social Security and state and federal income tax, that indicates the 1099 is improper. If so, I presume your state required him to pay unemployment on your behalf. If this guy has failed to send in required witholding, he could have some real trouble on his hands. I believe the term is "fraud". If he did that to you, he probably has done the same to others. Taxing authorities usually are not amused.
As for informing the other employees, I wouldn't do it at this time (except if that friend-of-a-friend is also a friend of yours). Your ex-employer is still in a position to hurt you since he will be on your resume and presumably someone may call him for a reference. Don't make this look like a vendetta. You are best off if he thinks that you only inadvertently ratted him out, not necessarily intentionally.
You may want to consider getting legal advice regarding your tax situation. There should be some pro bono legal service that might help, or you might even contact one of those radio ask-a-lawyer shows. This isn't the first time in history for this sort of thing.
Yes, the guy is a sleaze. Not the last one you'll ever encounter. Some firms eat their young and justify it by the fact that they are in turn being eaten by their sleazy clients. The minnow is eaten by the bigger fish, which in turn is eaten by a bigger fish, which in turn.............. Architecture does, indeed, suck.
I agree with you. In my recent jobs, the biggest lesson I've learned from the profession deals not with design or construction, but with business. Unfortunately, I've been an unpaid intern, which thankfully, I got out of quickly. And now, I am a misclassified employee. Hopefully, the IRS will catch enough shady businesses out there to make a statement that will make it fair for the honest firms. I hope students learn about the business side in school. I can only say that from my personal experiences, I will not continue the trend of mistreating employees - no matter what age or experience level.
Miles Jaffe:
Thanks for the realistic view and information. It makes me feel a little better about my situation.
geezertect:
I signed no contract. In my interview, I was told I would start on a part-time, "consultant" basis. However, I reported to work from 9-6. Many times I came in as early as 7 and left late, 7PM or later.
I was paid with a company check. It looked exactly like a personal check, only it had the firm's name on it. It did not have a stub and I had no taxes withheld. After every deposit, I printed a receipt with a check image and saved and filed it at home. Although naive, I was not dumb and realized I would probably have to pay taxes and pretty much saved everything I made. I wasn't expecting to be let go though. I figured I had nothing to lose and filed an unemployment claim.
I decided against informing the other employees. I do not know the friend-of-a-friend personally and do not trust the other intern there. I had a strong suspicion that the other intern would talk bad behind my back to the principal.
I completely agree with your point regarding my ex-employer's position as a reference. I left the firm upset, but not angry with the principal personally. Unfortunately, I think they were inexperienced with firing people and offered to help me find a new job. I think they did this to try and make me feel better. The 1099 issue did not arise until I attempted to file for unemployment and they informed me that I was misclassified. Anything coming his way was completely inadvertent on my part.
Looking back, there were signs that I should have gotten out a while ago. But, I convinced myself that it was only a matter of time before it would get better. The principal frequently discussed the position of the firm in terms of growth and constantly told me it would only be a matter of time before I would be brought up. This made it very hard to discuss salary or benefits.
You know let him know they usually start off pretty soft on someone....you know like popping the lock of cars and pissing on car seats...but they don't take nutten..usually just ole school messing with you... but ya don't want to take them to the next level of being pissed off...cause than it can get real nasty.
snook may write screen plays as a side job, but i break knee caps. yo, JERSEY in da hizz-house. <--------the last part is shit white guys say to black people - only in the safety of their homes. you feel me, yo.
Get some legal advice. You probably should also contact (I would do it in person) the IRS and your state revenue office and explain situation. You could be hit with penalties since you were supposed to make quarterly estimated payments if he wasn't witholding on your behalf and you knew it. Unemployment comp may be the least of your problems.
That said, the guy would be in serious trouble if he is a repeat offender (almost a certainty) and they went against him. If you were working full time hours, at his place of business, doing work at his direction, etc., you were an employee, not a "consultant". He was REQUIRED to withold taxes, pay into unemployment, etc. The idea of an experienced "kid" (no offense intended) being a "consultant" to an older experienced licensed professional (term used loosely) is laughable and the authorities aint that stupid.
It has become extremely common these days for firms to adopt a "turn and burn" attitude towards their employees, and places that were notorious for that before the recession are even worse now.
I'd say my last job was the architectural equivalent of working at Waffle House- the employee turnover was terrible amongst other gripes.
It's this mercenary attitude that has taken over the profession that has rendered IDP almost impossible.
This is common practice, at least in New York. It is really awful, and I sympathize with you because I have been in similar situations. In addition to going through the unemployment office, there is a federal tax form where you can file a complaint about being misclassfied as an independent contractor. Getting no unemployment sucks, but also having to pay an extra helping of taxes sucks.
My first summer internship in the city involved me being classified as an IC, which I didn't think was an issue until I had to file taxes at the end of the year. My wages basically shook out to minimum wage. Bleh! And when you are misclassfied, you really can't take that many deductions. You are working in an office at a workstation provided to you, so that really leaves transit, health insurance (which you probably didn't have), meals, and minor supplies. After this yucky experience, I learned to ask upfront how I would be classified in the interview. Because that really affects how much you should ask for because you are taking on a larger tax burden as an IC. I guess it was a sucky learning experience, and is one of the primary reasons I go on the AIA should advocate for young architects rant.
sahar, Were you registered as an Architect in New York when this happened. If you were not registered it might give you a leg up on, "Da Man." I'm not sure how New York works but alot of States will not allow you to work in a firm as an Independant Contractor unless your registered if your working in a Professional Field. I would certainly check into it when considering all future jobs.
snook_dude, my "research" aka using google to find an answer, didn't lead me to a provision like that for New York state. They do have a section of the labor board website talking about how to verify if you are being misclassfied, and you would answer yes to all of them. Some where do you perform work outside of what the office's normal work? Are you directed and managed within the office? Is the equipment provided to you by the office? Are you paid hourly or on a project basis? etc.
In my case, it was a few years ago, so it is more like a lesson learned experience. I just steer clear of any jobs that try to offer me a IC position. In no case have I experienced the salary bump that should come with being an IC, when being offered a job as an IC. I just think most of the companies that do it are usually greedy and/or care little about their employees so you probably wouldn't want to work there in the long run anyway. The only legit IC positions in architecture offices that are related to our field are probably rendering, graphic design, code expertise, everything else probably falls under some sort of consultant position that is officially tied to a project and contract.
Incidentally, one's status as an employee or independent contractor is not governed by how you are hired, what your hire agreement says, or anything that your employer might tell you. The IRS has a classification test for independent contractors which is the only legitimate way to determine your status. If you...
are using someone else's equipment,
sitting at a desk that someone else owns, work regular hours,
and submit to supervision by another on how you complete your job
...you are very likely going to be considered an employee by the IRS, for whom the employer needs to be paying unemployment insurance and withholding tax. Employees also gain family leave benefits and vacation depending on your state.
If you believe you were misclassified as an independent contractor, worry about closely reading and interpreting websites - just call your state labor office.
As a side note on this, if this guy is an independent contractor, doesn't he control the copyright to all work he produced while at the office? That's more of a thought exercise rather than practical.
I worked as a GRA in college, and had to use my own equipment and software and time, create my own schedules, etc. to make 3d models and some other stuff for a professor, so I looked into this from the other perspective. They said I was an employee, but I'm pretty sure I should have been classified as a contractor, in which case I think I could have challenged some of my professors rights to use the work I created.
curtkram, Did they pay you on a W-2? In the end, correct classification always comes down to who pays taxes.
Taxes are one thing, but employers classifying their employees to avoid giving them benefits is just crooked. Coming from my own experience, it's difficult to stay motivated and keep working hard when you don't basic health insurance or even sick hours to use.
I work at a small architectural & design firm in Chile. During the first 5 months (October 2010 - February 2011), I was paid about $800 USD monthly. On March I demanded a salary raise or to start working part-time. They accepted part-time. I worked like that until September, when I demanded to work fulltime again and have a salary around $1800 USD.
I work like 50 - 55 hours a week, If have had to spend whole nights at my office, I hav had to work on weekends, and lots of stuff like that. I am also expected to be really efficient in lots of tasks, and also extremely independent and proactive using freetime to create things from scratch. Also, lots of times entiry projects rely exclusively on me, from its early stages to their construction supervision. Basacillay, I'm a boss without the boss privileges.
However I'm happy (for now), I've learned a lot of things (non about architecture though, but about leadership, negociating skills, etc.) besides I've deepen a lot my technnical knowledge. That being said, I still consider I'm underpaid; think I should earn at least $2000 USD per month, considering I'm highly specialized in 3d modeling, rendering and parametric design; I am highly proficient in maaaaaaaaany architectural related software (Photohop, InDesign, Adobe Premiere, ArcGis Desktop, Ecotect + Radiance, 3dsMax, Autocad, Rhino, Grasshopper, Processing), I've strong graphic and layouting capabilities, I have an upper-intermediate english level (the best of my co-workers, including my bosses)...
I think I will start finding a new job if I don't get accepted in the grad programs I applied on December.
Honestly I think flagging the IRS and getting them involved is going to burn down bridges for you in the future. I rather be able to have a positive reference that I can use and move on forward with my career. I've burned bridges in the past... not worth it. The industry is small, and word of mouth travels fast, even in large cities. You dont want your name to have a bad rap. Do what you have to do, and get the fuck out! Im in the same exact position as the original poster, however I am toughing it out right now for these darn IDP hours. Once I am done, and NCARB approved for the exams.... I'M GONE!
oneLOST, it is indeed a small profession, and word of mouth can kill reputations, but…that goes both ways. If this firm owner really is a total douche (cheating employees out of taxes and churning purposefully through them to keep his own costs down, etc.) then he's probably got a bad rep himself in the community already (has potentially cheated contractors, consultants, etc.). In which case it's a bridge well-burned, because potential employers may know that this guy is Bad News.
You want to be polite and not bad mouth someone needlessly, but saying you were employed there and felt uncomfortable with how he ran his business and are glad to be out is nothing more than honest. If the guy has a bad rep already, anyone you interview with will likely already know it, and you DON'T want to be seen as complicit in anything you weren't.
oneLOSTarchitect, I am not trying to burn bridges. I want to remind everyone that I did not flag the IRS and tell them I was misclassified. After being let go last month, I immediately filed for unemployment. It was the department of labor that determined I was misclassified upon examining my claim. I have not done anything aside from file a claim.
When I was let go, I wanted to maintain a good rapport with the principal. Despite being blind-sided by my firing, I wrote a thank you letter to my former boss. The principal told me AGAIN, that they would talk with me about helping with my career. They set the time to meet. When I tried to confirm our meeting the night before, they asked if they could change it to a call. After a few attempts at calling, they finally picked up only to say they'd "call back in a few minutes." No call. I sent an email later in the week saying that I figured they were busy and to let me know when a good time to call would be. No reply. The pattern continued it. I would call or email, and they would tell me they'd get back. And they never would. I've since lost a lot of respect for this individual. My relationship with them exists only on my resume and portfolio. My only hope now is that they don't feel I'm attacking them. I was fired only last month and any future employers may get in contact with them. I used to trust this principal. Now I fear they could damage my career.
I agree with Donna, there's a difference between burning bridges and reporting an ADULT who is clearly doing something unscrupulous and being irresponsible. Sometimes you have to look out for yourself and your own well being and if you don't stand up for yourself now it will do nothing to help the problem within the community in general. Unless people are called out on doing things like this others will assume they can still get away with it. There are plenty of reputable firms out there that won't screw you over and probably won't know or care if you followed up on this problem by filing a report with the state, IRS or whatever path you choose. In fact, I'd say it shows that you have a level of integrity that your previous employer obviously does not have. Please don't let this one slide but be tactful about it in the process.
pdigi ... as I read through your threads and, in particular, your description of your former employer's behavior subsequent to your departure, I'm inclined to think that your former employer did, in fact, have some issues with your performance. While I don't necessarily expect you to embrace that assessment, it's only human nature to tell people what they want to hear in order to avoid an uncomfortable conversation. Moreover, once you were out the door, it was even easier to avoid the conversation. Architects are notorious for avoiding confrontation -- and, giving an employee negative feedback seems to top the list of conversations to be avoided.
I think you have to ask yourself this -- what are you really preserving by trying to protect the relationship? As you describe the situation, I would be very surprised if your former employer would give you a good reference -- whether you turn him in or not. If I were in your shoes, I think I'd be concentrating my attention on how to apply for a new job without having to use the former employer as a reference. Whether you report this guy is a decision that you alone can make.
Seen plenty of kids in the past 2 years get fired (in a similar firm described above) when they are fully capable and talented in performing good design and daily tasks. Sometimes you rub off someone the wrong way. So don't take it personally. Fortunately I've haven't gotten the "talk" from my boss. However, every time I witnessed a fire, it was always the same thing... the principal would avoid confrontation. He would give some feel good speech to you, and then how things are slowing down and he isnt able to hold onto staff and pay. He never tells them they are fired, but keeps their hopes alive by stating that he will keep in contact with them, and get back in touch with them in a week. All empty promises... as he never does... he is looking for someone else to replace their shoes the next week.
My advice is... if there was nothing benifitial for you... and the only thing I am thinking here is accomplishing your IDP hours... just move on... and find something that is worth your time... and knows how to treat an employee with respect. Don't lower yourself to those standards again. I know I wont. I think these principals need a wake up call that we wont tolerate this crap.
pdigi: A moment of truth is coming April 15. If YOU pay the entire amount of taxes due based on the 1099, the IRS and state computers may red-flag your return and call you in for an explanation. That plus your unemployment claim may drag in your former employer in. It's out of your hands. You need to figure out what you're going to do April 15. Let the wheels of justice (if any) do their own thing regarding him.
If he's going to be vindictive, that is also out of your hands. If he lies about your performance, there are laws on that too. It's not risk-free for him.
Get another job and get your tax situation in hand ASAP and move on. It's all you can do at this juncture.
BTW, do you know any of the people who used to work for him? If he's a repeat offender, how did they handle things?
you are ALL right. I needed to hear those things. I can only move on and keep on trucking along. I'm young and I don't think he can really tarnish my image. As for my tax situation, I'm glad this all happened early in the year so there are no big surprises come April 15th. Unfortunately, I don't know anyone who has worked for this firm before so I can't get a feel for how they handled things. I can only be a resource for any interns that may experience this in the future.
Talk to IRS and state in person and file your return and pay your money as soon as you can. That way, you establish that you are acting in good faith and not trying to pull a fast one yourself. That, plus your youth and inexperience, will put you in a better light in contrast with your ex-employer.
As you can guess, I was denied unemployment. I filed an appeal, but I'm not optimistic.
I spoke with the IRS and filed form SS-8 to get a determination that I really was an employee. I am still waiting to hear back. They told me to file form 8919 along with my taxes anyway to recalculate how much I really owe. However, I have yet to receive my 1099 from my previous employer. He has not responded to any of my emails. I know people will say that 1099's do not need the actual form, as they should be keeping track of what they earn and paying quarterly. However, I feel I need it to file considering my misclassification case.
Don't know if this has been mentioned yet, but in many states you are considered an employee if you get more than 60% of your compensation from a single employer during a year. Not sure if this applies in your state, but that might be another avenue of attack. A friend of mine here in Seattle faced a similar situation to yours and was able to go back at his employer on these grounds. The employer wound up having to pay all the back taxes plus penalties, and my friend got qualification for unemployment payments as part of that.
Thanks for the update pdigi! It's a bad situation but it's generous of you to share it here - hopefully some other young architects will learn from it too.
My very limited understanding is that 1099s go to anyone a company pays that is NOT a corporate entity. So I hope your former employer can get it together to give you one.
I know I'm supposed to get one because I got one from my ex-boss last year. Although, he did give me my 1099 just a few days before the deadline. Is there anything I can do about this? He isn't responding to my emails and I really don't think he wants me coming to the office (he wouldn't let me come back to the office to pick up belongings I left behind before). All I want is to pay my taxes and be done with this firm!
I would look at this as a business transaction in which you got screwed, there is no benefit to thanking this ass for the screwing. Make sure you aren't paying an extra 15% in taxes and don't let this guy take advanage of you or those who come after you
I worked years ago at an environmental graphics design firm in Manhattan. During my first week, people in the elevator started cautioning me, saying "we've seen a lot of people go through that place" or "be careful" but being all young and naive and invincible, I just thought that the firm hadn't found the right person yet, and that would be me.
One day before the 3 month mark, I was called to the conference room and given the usual bullshit, and let go. At that moment I realized that the firm was dong this purely to avoid paying benefits. Crazy!!!
I later realized that the firm principals are just nasty people. They wouldn't let me use anything I'd worked on there on my website, and threatened me with a lawsuit for doing so.
I've been a W-2 employee exactly ONCE, and only stayed at that office for about 4 months. Since then (20+ years) I've ALWAYS been an independent contractor, and get 1099'd.
My advice to young guys is as follows, and not necessarily in this order:
1) You are a consultant (or contractor, if you like). You are NOT an employee. At least not around here, and not in residential work, for sure. Work for firms on a JOB-BY-JOB basis, with a clear image of your responsibilities and schedules.
2) You better learn some cash management. You need to save money continuously to pay your income taxes, on a quarterly basis. You can pay quarterlies late, but should only do that if you hate money... because the IRS will ask for more in penalties.
3) If you get a refund from the IRS at the end of the year, you're doing it WRONG. They pay 0% interest on the money you've 'loaned' them. You should always have to kick in a small, additional amount with the last quarterly... Then you're doing it right! ALWAYS tell the TRUTH to the IRS... never lie!!!! You are at a high level of audit risk sheerly by your occupation code. If you work for somebody, and they don't send you a 1099 at the end of the year you should claim it as 'other income' on your Schedule C and annotate it with the job name. Very important.
4) If you want health insurance, get a phone book or hit the net and find an insurance agent to help you out. I've never had that provided by anyone I've worked for.. It was always bought on my own.
5) Pension??? Forgetaboutit. That's up to YOU. You need to SAVE. If you really fancy yourself a 'professional planner' and are capable of managing multi-million dollar construction budgets, then it should be no problem managing your personal finances and maintaining a rainy day fund... I can guarantee you it WILL rain.. and hard... at least at some point in your career.
6) NEVER, EVER, EVER leave a 'job' or a project on bad terms if you can possibly help it. Bad press spreads like wildfire.
7) Get used to having zero job security. I become 'unemployed' on a regular basis;. Every time a job is finished! Granted, I've got projects coming and going in and out of my shop on a continuous basis, so I'm never truly 'unemployed' for long, if at all. Even if I were unemployed (for real), I've got absolutely ZERO chance of getting anything from the government. Forget about that.
I had six months of only 50% capacity in 2010 and even cut my fees for a while just to keep the jobs that were still alive in my shop. It worked, too.. Now I'm working all I want and fees are back to the original levels. My customers and I worked together to get through a tough spell.
8) If you do a good job and make the principal's professional life easier, he'll come back to you again and again and again.... IF he has work to do.
9) Never let any principal 'own' you. It needs to be understood that as a free agent, you can work for whoever you like whenever you like. That said, it's incumbent upon you to have good time / schedule management. Don't take on a project unless you're sure you can handle it from both the technical AND schedule perspectives.
10) Get ready for 60 hour weeks bracketed with 10 hour weeks. My work load is almost always 'lumpy' and always unpredictable. Has never been otherwise.
11) Develop relationships with everyone you can.. especialy contractors and suppliers. You'd be amazed how many doors it can open. If your principals are avaricious and you're any good, they'll do everything in their power to keep you a secret. It's vital to be sure you don't get stuffed into a flat file drawer. This requires very careful political maneuvering. Has always been part of the game and always will be.
12) Constantly broaden and sharpen your skills. This means less time on the surfboard and more time reading / studying / researching / qualifying. Absolutely crucial - especialy these days.
That's the first dozen. There's more, but I'll spare you, for now. The guy you're working for owes you only one thing - prompt payment at the agreed rate for work performed in the correct time frame - period. If you screw up the negotiation on the first day, you're stuck until that project is done... unless the principal is a good guy / gal and gives you a bump for your obvious extra effort (happened to me a few times when I was a kid).
There are lots of personalities out there. Some of my regular principals are challenging (they know who they are! <g>) and some are really easy. I've got 6 firms I work for pretty regularly, and two of them have had me around since I started in the biz. You'll gradually build up a diversified client base which will give you at least some 'job security'. It takes time, patience and diplomacy.
I've always thought draftsmen / aspiring Architects / production people should think of their careers more like building contractors than like office workers. In the old days, we were indeed the contractors! <vlg>
Don't be in this business if you don't Love it.
I Love this work. I'd do it for free if I didn't have to feed my family and enjoy some small comforts. It's the greatest vocation in the Universe.
Marry wisely. An Architect's wife is a very special creature. Mine is a Rock. I'm keeping her for another 25 years, for sure.
Good deal! - Hope I've made my first friend at Archinect.
Working at home, I get 'community challenged', so it was a real delight to find this site with folks talking about things specific to our trade. See you 'round the forum!
DMS-USA, great advice. That list can be expanded, of course, but top 12 should include a few words on "art of fee negotiation".
It requires letting go of salary mentality. Instead of asking 'how much am I worth?' the question is 'how much is the task at hand worth?'. Once you do that, you quickly become skilled at gaging the potential contracts and can offer flexible rates. I usually offer a range of hourly fees to the client (depending on each task), and offering project flat fee takes the out the guesswork on certain projects.
Rusty - Yes.. Setting your price takes some practice! But it only takes a few projects to get your sea legs for that. I do about half the jobs hourly and half flat-rate. Depends on the type of job.. and often the customer's preference.
One Lost - She's a helluva good catch. We're old fashioned... what can i tell ya'? <g>
very informative post. However I think the problem in this case is that the "contractor" was treated exactly the same as an employee, yet denied the benefits which are legally required in that situation.
My understanding of contract work, and please correct me if I'm wrong, is that the firm is due only a specific product at a specific time and cost.
Meaning that it is up to the contractor to set their own schedule. They should be able to work from home or come and go as they please. Tardiness is not something that should ever be an issue.
true - there are a lot of benefits to being an independent contractor and it's good practice for running your own shop (and that you really need to understand your legal rights), but no one should EVER be forced/coerced/deceived into this arrangement if they aren't looking for it - and it's good that the government has finally started cracking down on what is essentially exploitation of inexperience just to avoid paying taxes. This is absolutely unethical (and illegal) behavior and I think there should be far more severe punishments aside from the monetary penalties from the IRS if you get caught.
if you want to hire an independent contractor - advertise the position as a contract position - be upfront about it - don't go around tricking recent grads. I do think people should know about this option and that it is something worthwhile pursuing during lean economic times, but for those in positions to hire people, trying to figure out how much you can get away with is reprehensible.
Shady Business?
Has anyone experienced firms that cycle through new employees*?
I recently worked at a small firm consisting of the principal, myself, and another intern. I worked there for a year and a few months before being let go due to my "slipping performance". Initially, I was hired part-time for peanuts with the idea that after 3-6 months I would be brought up with better pay and benefits. Part-time status turned to full-time (40 hours) after a week.
For the first six months I worked very hard. I frequently worked over forty hours a week; even coming in on weekends if necessary. There was never any overtime pay. I was given a slight raise, but no benefits. Soon after, another intern was brought on board. They too began on a part-time basis, but unlike myself, did not begin working full time for about a month. This person had a B.S. Arch and started out as a strong employee. Within a few months however, this employee began calling out sick. It was an almost frequent occasion as they would conveniently feel sick around deadlines. In the short time they were there, they managed to miss more than a week's worth of days, often left early due to feeling ill, and rendered themselves useless for a couple days when they accidentally disabled their computer. Needless to say, this person was not the easiest to work with.
At my year review, I was informed my main issues were tardiness (I admit I came frequently came in 5-10 minutes late) and that my performance had dropped in recent months. Since it was small, the principal was out of the office, on average, 3 days a week for meetings, site visits, etc. I was required to work independently; often having to create relevant work for myself as the principal could not always inform me of specific tasks. This worked sometimes, specifically when it came to producing objective work - construction documents, schedules, spec. sheets, etc. Other times, when given an open ended design problem, or drawings to do with no given parameters, I tended to take more time and produced little by the end of the day, often due to lack of direction. Despite the negative comments, the overall review was good. I was praised for my reliability, composure during pressure situations, and ability to consistently meet deadlines. At the end of the review, I was given a slight raise and the conversation briefly touched on the placement of benefits. I left the review feeling positive that I was given constructive feedback and that my career was finally getting started.
Two months later, I was no longer tardy, still working as hard as I could. However, I was still failing to design as efficiently independently as my boss expected of me. And so, on the basis of my declining performance, I was released from the firm. My now former employer citing that we should "take a break". The principal assured I was a smart, hard working, and "one of the most reliable people to ever work" for them. They even offered career counseling and aid in my future job search. I was gracious and calm in my exit. Deep down, I was bewildered, confused, upset, and angry. Was my performance THAT bad? If so, then why was the other employee not let go too?
I have since come to see this as a blessing in disguise. I did learn a lot in my time there, as the principal took time to teach me about construction and architecture as a business. However, I am very pleased to no longer be working with that coworker and feel I have a matured and refreshed outlook on my career.
Recently though, through the power of Facebook, I found that a person I have a mutual friend with, is now *employed* at my former firm. This person is two years younger than myself and with less experience. It is important to note that when I came in for my interview, there was another intern there. I was excited to see that I would be working with young, growing office. However, when I began working, I was told that the former intern was let go.
Does this firm squeeze the juice out of young employees* and then hire new ones? Is this common among architecture firms/small businesses? Excuse my naivete, but I hope this practice is not common. If so, all I can do is hope that I don't work for another firm like it.
* I note employee because I have recently discovered that I was a misclassified 1099 when I filed for unemployment. I'm sure the others who work there are also misclassified. Again, please excuse my naivete, but I thought it was common for businesses to pay employees on 1099 until they became "full-time" employees. I am unsure as to what will happen now. Last I spoke with the unemployment office, they said they were investigating the situation. It seems like the government is on my side. Anyone have experience with this?
Thanks for taking the time to read this long rant. Archinect has always been a supportive and constructive community for me.
Ooooh, boy. You were "misclassified" 1099? No, that was not a mistake - this employer is a douche who abuses young interns. This *does* happen all the time and thank god there are forums like this where people can talk to others and come to realize how they were mistreated.
Contact your friend who works there and tell them to be aware they are probably going to owe a lot in taxes, so either get out now (the smartest thing) or at least start setting aside money to pay the taxes they right now assume are being paid by the employer. Report the employer to the unemployment office and the Secretary of State for misrepresenting the terms of your employment - if you were not clearly made aware that you were working as a contractor not an actual employee, that means this person was either pocketing your unemployment and SS or not paying it at all. Reporting them probably won't do you any good, but at least will put the employer on notice that they are doing something illegal and they can't keep doing it.
Sorry you had to learn this the hard way - but at least you DID learn a lot while there, that hopefully will help you avoid this kind of shitty situation later.
When oh when will our profession start teaching ethical behaviour along with decent business practice?!? This kind of employer in our field is SO common.
I was an abused 1099 worker getting paid minimum wage after graduating with my masters. $7.50 an hour and getting hit with a 1099. I was making more at Starbucks! I was desperate to get my IDP done so yea there was that. Now with minimum wage increasing almost every year, I don’t see my salary increasing... Soon the kids at Tim Hortons will be making more than me!
While the IRS probably won't care, the state very well might. You could complain that you were in reality a full time employee and that your employer did not pay the required withholding taxes and unemployment and compensation insurance that is required by law.
This would put the SOB on the hot seat with legal authorities that have the power to seize assets.
Been there, done that.
Yep, sounds pretty normal to me. Architecture sucks, yo!
Is it my moral responsibility to warn the other interns working there? A part of me feels like I should. But at the same time, I honestly don't want anything to do with that firm anymore.
Are there any steps I need to take in order to inform the IRS of my misclassification. I immediately filed an unemployment claim the week I was let go. They soon followed up with an examination of my claim and determined I was misclassified. I was then told that I needed to present them with the my gross quarterly earnings and the firm's tax ID (for which there is none). It has been a few weeks since then, and they are still investigating the tax ID situation. I'm sure it's simply a bureaucratic nightmare down there, but does anyone have insight as to what is going on? Do I need to fill out/file/apply for anything in particular?
In NY the worker's compensation board is extremely aggressive. I'd go after them as well as the state and federal tax authorities. Failure to pay withholding tax is a crime.
9.01 STATUTORY LANGUAGE: 26 U.S.C. § 7202
§7202. Willful failure to collect or pay over tax
Any person required under this title to collect, account for, and pay over any tax imposed by this title who willfully fails to collect or truthfully account for and pay over such tax shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, be fined* not more than $10,000, or imprisoned not more than five years, or both, together with the costs of prosecution.
In these days of low tax revenue, collection agencies are even more aggressive than usual.
When you started work, did you sign any kind of "contract" that would have made you an independent contractor instead of a salaried employee? Seems to me if you were there full time for over a year, the authorities are going to deem you an employee and not a subcontractor. He has a problem.
Were you paid with company payroll type checks with pay stubs? I hope you kept them. What do they show? If they show that he was witholding Social Security and state and federal income tax, that indicates the 1099 is improper. If so, I presume your state required him to pay unemployment on your behalf. If this guy has failed to send in required witholding, he could have some real trouble on his hands. I believe the term is "fraud". If he did that to you, he probably has done the same to others. Taxing authorities usually are not amused.
As for informing the other employees, I wouldn't do it at this time (except if that friend-of-a-friend is also a friend of yours). Your ex-employer is still in a position to hurt you since he will be on your resume and presumably someone may call him for a reference. Don't make this look like a vendetta. You are best off if he thinks that you only inadvertently ratted him out, not necessarily intentionally.
You may want to consider getting legal advice regarding your tax situation. There should be some pro bono legal service that might help, or you might even contact one of those radio ask-a-lawyer shows. This isn't the first time in history for this sort of thing.
Yes, the guy is a sleaze. Not the last one you'll ever encounter. Some firms eat their young and justify it by the fact that they are in turn being eaten by their sleazy clients. The minnow is eaten by the bigger fish, which in turn is eaten by a bigger fish, which in turn.............. Architecture does, indeed, suck.
Keep us posted.
Donna Sink:
I agree with you. In my recent jobs, the biggest lesson I've learned from the profession deals not with design or construction, but with business. Unfortunately, I've been an unpaid intern, which thankfully, I got out of quickly. And now, I am a misclassified employee. Hopefully, the IRS will catch enough shady businesses out there to make a statement that will make it fair for the honest firms. I hope students learn about the business side in school. I can only say that from my personal experiences, I will not continue the trend of mistreating employees - no matter what age or experience level.
Miles Jaffe:
Thanks for the realistic view and information. It makes me feel a little better about my situation.
geezertect:
I signed no contract. In my interview, I was told I would start on a part-time, "consultant" basis. However, I reported to work from 9-6. Many times I came in as early as 7 and left late, 7PM or later.
I was paid with a company check. It looked exactly like a personal check, only it had the firm's name on it. It did not have a stub and I had no taxes withheld. After every deposit, I printed a receipt with a check image and saved and filed it at home. Although naive, I was not dumb and realized I would probably have to pay taxes and pretty much saved everything I made. I wasn't expecting to be let go though. I figured I had nothing to lose and filed an unemployment claim.
I decided against informing the other employees. I do not know the friend-of-a-friend personally and do not trust the other intern there. I had a strong suspicion that the other intern would talk bad behind my back to the principal.
I completely agree with your point regarding my ex-employer's position as a reference. I left the firm upset, but not angry with the principal personally. Unfortunately, I think they were inexperienced with firing people and offered to help me find a new job. I think they did this to try and make me feel better. The 1099 issue did not arise until I attempted to file for unemployment and they informed me that I was misclassified. Anything coming his way was completely inadvertent on my part.
Looking back, there were signs that I should have gotten out a while ago. But, I convinced myself that it was only a matter of time before it would get better. The principal frequently discussed the position of the firm in terms of growth and constantly told me it would only be a matter of time before I would be brought up. This made it very hard to discuss salary or benefits.
Thank you all for the feedback!
It is time to Call in Uncle Vinny and Uncle Salvatore...to do a little collecting for you!
Just let the guy who jerked you around, they are not nice guys and you have no control
over what they might do...but they are really strong family men...and no on messes with the family.
You know let him know they usually start off pretty soft on someone....you know like popping the lock of cars and pissing on car seats...but they don't take nutten..usually just ole school messing with you... but ya don't want to take them to the next level of being pissed off...cause than it can get real nasty.
pdigi ...oh by the way I write screen plays as a side job..
snook may write screen plays as a side job, but i break knee caps. yo, JERSEY in da hizz-house. <--------the last part is shit white guys say to black people - only in the safety of their homes. you feel me, yo.
The problems with heavies is that once they finish the job for you, they do the job on you. It's a game that you do not want to play.
shhhh. [it's a secret.]
Get some legal advice. You probably should also contact (I would do it in person) the IRS and your state revenue office and explain situation. You could be hit with penalties since you were supposed to make quarterly estimated payments if he wasn't witholding on your behalf and you knew it. Unemployment comp may be the least of your problems.
That said, the guy would be in serious trouble if he is a repeat offender (almost a certainty) and they went against him. If you were working full time hours, at his place of business, doing work at his direction, etc., you were an employee, not a "consultant". He was REQUIRED to withold taxes, pay into unemployment, etc. The idea of an experienced "kid" (no offense intended) being a "consultant" to an older experienced licensed professional (term used loosely) is laughable and the authorities aint that stupid.
Welcome to the profession. Good luck.
It has become extremely common these days for firms to adopt a "turn and burn" attitude towards their employees, and places that were notorious for that before the recession are even worse now.
I'd say my last job was the architectural equivalent of working at Waffle House- the employee turnover was terrible amongst other gripes.
It's this mercenary attitude that has taken over the profession that has rendered IDP almost impossible.
This is common practice, at least in New York. It is really awful, and I sympathize with you because I have been in similar situations. In addition to going through the unemployment office, there is a federal tax form where you can file a complaint about being misclassfied as an independent contractor. Getting no unemployment sucks, but also having to pay an extra helping of taxes sucks.
My first summer internship in the city involved me being classified as an IC, which I didn't think was an issue until I had to file taxes at the end of the year. My wages basically shook out to minimum wage. Bleh! And when you are misclassfied, you really can't take that many deductions. You are working in an office at a workstation provided to you, so that really leaves transit, health insurance (which you probably didn't have), meals, and minor supplies. After this yucky experience, I learned to ask upfront how I would be classified in the interview. Because that really affects how much you should ask for because you are taking on a larger tax burden as an IC. I guess it was a sucky learning experience, and is one of the primary reasons I go on the AIA should advocate for young architects rant.
sahar, Were you registered as an Architect in New York when this happened. If you were not registered it might give you a leg up on, "Da Man." I'm not sure how New York works but alot of States will not allow you to work in a firm as an Independant Contractor unless your registered if your working in a Professional Field. I would certainly check into it when considering all future jobs.
snook_dude, my "research" aka using google to find an answer, didn't lead me to a provision like that for New York state. They do have a section of the labor board website talking about how to verify if you are being misclassfied, and you would answer yes to all of them. Some where do you perform work outside of what the office's normal work? Are you directed and managed within the office? Is the equipment provided to you by the office? Are you paid hourly or on a project basis? etc.
In my case, it was a few years ago, so it is more like a lesson learned experience. I just steer clear of any jobs that try to offer me a IC position. In no case have I experienced the salary bump that should come with being an IC, when being offered a job as an IC. I just think most of the companies that do it are usually greedy and/or care little about their employees so you probably wouldn't want to work there in the long run anyway. The only legit IC positions in architecture offices that are related to our field are probably rendering, graphic design, code expertise, everything else probably falls under some sort of consultant position that is officially tied to a project and contract.
Incidentally, one's status as an employee or independent contractor is not governed by how you are hired, what your hire agreement says, or anything that your employer might tell you. The IRS has a classification test for independent contractors which is the only legitimate way to determine your status. If you...
...you are very likely going to be considered an employee by the IRS, for whom the employer needs to be paying unemployment insurance and withholding tax. Employees also gain family leave benefits and vacation depending on your state.
If you believe you were misclassified as an independent contractor, worry about closely reading and interpreting websites - just call your state labor office.
As a side note on this, if this guy is an independent contractor, doesn't he control the copyright to all work he produced while at the office? That's more of a thought exercise rather than practical.
I worked as a GRA in college, and had to use my own equipment and software and time, create my own schedules, etc. to make 3d models and some other stuff for a professor, so I looked into this from the other perspective. They said I was an employee, but I'm pretty sure I should have been classified as a contractor, in which case I think I could have challenged some of my professors rights to use the work I created.
curtkram, Did they pay you on a W-2? In the end, correct classification always comes down to who pays taxes.
Taxes are one thing, but employers classifying their employees to avoid giving them benefits is just crooked. Coming from my own experience, it's difficult to stay motivated and keep working hard when you don't basic health insurance or even sick hours to use.
im on the same boat unfortunately.
It is worth y'all looking into this route. If you are no longer working for this person, you really have nothing to lose.
http://www.irs.gov/newsroom/article/0,,id=176666,00.html
I work at a small architectural & design firm in Chile. During the first 5 months (October 2010 - February 2011), I was paid about $800 USD monthly. On March I demanded a salary raise or to start working part-time. They accepted part-time. I worked like that until September, when I demanded to work fulltime again and have a salary around $1800 USD.
I work like 50 - 55 hours a week, If have had to spend whole nights at my office, I hav had to work on weekends, and lots of stuff like that. I am also expected to be really efficient in lots of tasks, and also extremely independent and proactive using freetime to create things from scratch. Also, lots of times entiry projects rely exclusively on me, from its early stages to their construction supervision. Basacillay, I'm a boss without the boss privileges.
However I'm happy (for now), I've learned a lot of things (non about architecture though, but about leadership, negociating skills, etc.) besides I've deepen a lot my technnical knowledge. That being said, I still consider I'm underpaid; think I should earn at least $2000 USD per month, considering I'm highly specialized in 3d modeling, rendering and parametric design; I am highly proficient in maaaaaaaaany architectural related software (Photohop, InDesign, Adobe Premiere, ArcGis Desktop, Ecotect + Radiance, 3dsMax, Autocad, Rhino, Grasshopper, Processing), I've strong graphic and layouting capabilities, I have an upper-intermediate english level (the best of my co-workers, including my bosses)...
I think I will start finding a new job if I don't get accepted in the grad programs I applied on December.
Honestly I think flagging the IRS and getting them involved is going to burn down bridges for you in the future. I rather be able to have a positive reference that I can use and move on forward with my career. I've burned bridges in the past... not worth it. The industry is small, and word of mouth travels fast, even in large cities. You dont want your name to have a bad rap. Do what you have to do, and get the fuck out! Im in the same exact position as the original poster, however I am toughing it out right now for these darn IDP hours. Once I am done, and NCARB approved for the exams.... I'M GONE!
oneLOST, it is indeed a small profession, and word of mouth can kill reputations, but…that goes both ways. If this firm owner really is a total douche (cheating employees out of taxes and churning purposefully through them to keep his own costs down, etc.) then he's probably got a bad rep himself in the community already (has potentially cheated contractors, consultants, etc.). In which case it's a bridge well-burned, because potential employers may know that this guy is Bad News.
You want to be polite and not bad mouth someone needlessly, but saying you were employed there and felt uncomfortable with how he ran his business and are glad to be out is nothing more than honest. If the guy has a bad rep already, anyone you interview with will likely already know it, and you DON'T want to be seen as complicit in anything you weren't.
oneLOSTarchitect, I am not trying to burn bridges. I want to remind everyone that I did not flag the IRS and tell them I was misclassified. After being let go last month, I immediately filed for unemployment. It was the department of labor that determined I was misclassified upon examining my claim. I have not done anything aside from file a claim.
When I was let go, I wanted to maintain a good rapport with the principal. Despite being blind-sided by my firing, I wrote a thank you letter to my former boss. The principal told me AGAIN, that they would talk with me about helping with my career. They set the time to meet. When I tried to confirm our meeting the night before, they asked if they could change it to a call. After a few attempts at calling, they finally picked up only to say they'd "call back in a few minutes." No call. I sent an email later in the week saying that I figured they were busy and to let me know when a good time to call would be. No reply. The pattern continued it. I would call or email, and they would tell me they'd get back. And they never would. I've since lost a lot of respect for this individual. My relationship with them exists only on my resume and portfolio. My only hope now is that they don't feel I'm attacking them. I was fired only last month and any future employers may get in contact with them. I used to trust this principal. Now I fear they could damage my career.
I agree with Donna, there's a difference between burning bridges and reporting an ADULT who is clearly doing something unscrupulous and being irresponsible. Sometimes you have to look out for yourself and your own well being and if you don't stand up for yourself now it will do nothing to help the problem within the community in general. Unless people are called out on doing things like this others will assume they can still get away with it. There are plenty of reputable firms out there that won't screw you over and probably won't know or care if you followed up on this problem by filing a report with the state, IRS or whatever path you choose. In fact, I'd say it shows that you have a level of integrity that your previous employer obviously does not have. Please don't let this one slide but be tactful about it in the process.
pdigi ... as I read through your threads and, in particular, your description of your former employer's behavior subsequent to your departure, I'm inclined to think that your former employer did, in fact, have some issues with your performance. While I don't necessarily expect you to embrace that assessment, it's only human nature to tell people what they want to hear in order to avoid an uncomfortable conversation. Moreover, once you were out the door, it was even easier to avoid the conversation. Architects are notorious for avoiding confrontation -- and, giving an employee negative feedback seems to top the list of conversations to be avoided.
I think you have to ask yourself this -- what are you really preserving by trying to protect the relationship? As you describe the situation, I would be very surprised if your former employer would give you a good reference -- whether you turn him in or not. If I were in your shoes, I think I'd be concentrating my attention on how to apply for a new job without having to use the former employer as a reference. Whether you report this guy is a decision that you alone can make.
Agreed with quizzical.
Seen plenty of kids in the past 2 years get fired (in a similar firm described above) when they are fully capable and talented in performing good design and daily tasks. Sometimes you rub off someone the wrong way. So don't take it personally. Fortunately I've haven't gotten the "talk" from my boss. However, every time I witnessed a fire, it was always the same thing... the principal would avoid confrontation. He would give some feel good speech to you, and then how things are slowing down and he isnt able to hold onto staff and pay. He never tells them they are fired, but keeps their hopes alive by stating that he will keep in contact with them, and get back in touch with them in a week. All empty promises... as he never does... he is looking for someone else to replace their shoes the next week.
My advice is... if there was nothing benifitial for you... and the only thing I am thinking here is accomplishing your IDP hours... just move on... and find something that is worth your time... and knows how to treat an employee with respect. Don't lower yourself to those standards again. I know I wont. I think these principals need a wake up call that we wont tolerate this crap.
pdigi: A moment of truth is coming April 15. If YOU pay the entire amount of taxes due based on the 1099, the IRS and state computers may red-flag your return and call you in for an explanation. That plus your unemployment claim may drag in your former employer in. It's out of your hands. You need to figure out what you're going to do April 15. Let the wheels of justice (if any) do their own thing regarding him.
If he's going to be vindictive, that is also out of your hands. If he lies about your performance, there are laws on that too. It's not risk-free for him.
Get another job and get your tax situation in hand ASAP and move on. It's all you can do at this juncture.
BTW, do you know any of the people who used to work for him? If he's a repeat offender, how did they handle things?
quizzical, oneLOSTarchitect, and geezertect
you are ALL right. I needed to hear those things. I can only move on and keep on trucking along. I'm young and I don't think he can really tarnish my image. As for my tax situation, I'm glad this all happened early in the year so there are no big surprises come April 15th. Unfortunately, I don't know anyone who has worked for this firm before so I can't get a feel for how they handled things. I can only be a resource for any interns that may experience this in the future.
Talk to IRS and state in person and file your return and pay your money as soon as you can. That way, you establish that you are acting in good faith and not trying to pull a fast one yourself. That, plus your youth and inexperience, will put you in a better light in contrast with your ex-employer.
Good luck
Update:
As you can guess, I was denied unemployment. I filed an appeal, but I'm not optimistic.
I spoke with the IRS and filed form SS-8 to get a determination that I really was an employee. I am still waiting to hear back. They told me to file form 8919 along with my taxes anyway to recalculate how much I really owe. However, I have yet to receive my 1099 from my previous employer. He has not responded to any of my emails. I know people will say that 1099's do not need the actual form, as they should be keeping track of what they earn and paying quarterly. However, I feel I need it to file considering my misclassification case.
Don't know if this has been mentioned yet, but in many states you are considered an employee if you get more than 60% of your compensation from a single employer during a year. Not sure if this applies in your state, but that might be another avenue of attack. A friend of mine here in Seattle faced a similar situation to yours and was able to go back at his employer on these grounds. The employer wound up having to pay all the back taxes plus penalties, and my friend got qualification for unemployment payments as part of that.
Thanks for the update pdigi! It's a bad situation but it's generous of you to share it here - hopefully some other young architects will learn from it too.
My very limited understanding is that 1099s go to anyone a company pays that is NOT a corporate entity. So I hope your former employer can get it together to give you one.
I know I'm supposed to get one because I got one from my ex-boss last year. Although, he did give me my 1099 just a few days before the deadline. Is there anything I can do about this? He isn't responding to my emails and I really don't think he wants me coming to the office (he wouldn't let me come back to the office to pick up belongings I left behind before). All I want is to pay my taxes and be done with this firm!
Isn't he required by law to give you a 1099? I don't think it's a "favor" he does for you at his option. Guy sounds like a real a**hole.
I only read the first half of these posts...
the form you need is:
http://www.irs.gov/pub/irs-pdf/fss8.pdf
I would look at this as a business transaction in which you got screwed, there is no benefit to thanking this ass for the screwing. Make sure you aren't paying an extra 15% in taxes and don't let this guy take advanage of you or those who come after you
I worked years ago at an environmental graphics design firm in Manhattan. During my first week, people in the elevator started cautioning me, saying "we've seen a lot of people go through that place" or "be careful" but being all young and naive and invincible, I just thought that the firm hadn't found the right person yet, and that would be me.
One day before the 3 month mark, I was called to the conference room and given the usual bullshit, and let go. At that moment I realized that the firm was dong this purely to avoid paying benefits. Crazy!!!
I later realized that the firm principals are just nasty people. They wouldn't let me use anything I'd worked on there on my website, and threatened me with a lawsuit for doing so.
Wow!! I can't believe what I'm reading here!
I've been a W-2 employee exactly ONCE, and only stayed at that office for about 4 months. Since then (20+ years) I've ALWAYS been an independent contractor, and get 1099'd.
My advice to young guys is as follows, and not necessarily in this order:
1) You are a consultant (or contractor, if you like). You are NOT an employee. At least not around here, and not in residential work, for sure. Work for firms on a JOB-BY-JOB basis, with a clear image of your responsibilities and schedules.
2) You better learn some cash management. You need to save money continuously to pay your income taxes, on a quarterly basis. You can pay quarterlies late, but should only do that if you hate money... because the IRS will ask for more in penalties.
3) If you get a refund from the IRS at the end of the year, you're doing it WRONG. They pay 0% interest on the money you've 'loaned' them. You should always have to kick in a small, additional amount with the last quarterly... Then you're doing it right! ALWAYS tell the TRUTH to the IRS... never lie!!!! You are at a high level of audit risk sheerly by your occupation code. If you work for somebody, and they don't send you a 1099 at the end of the year you should claim it as 'other income' on your Schedule C and annotate it with the job name. Very important.
4) If you want health insurance, get a phone book or hit the net and find an insurance agent to help you out. I've never had that provided by anyone I've worked for.. It was always bought on my own.
5) Pension??? Forgetaboutit. That's up to YOU. You need to SAVE. If you really fancy yourself a 'professional planner' and are capable of managing multi-million dollar construction budgets, then it should be no problem managing your personal finances and maintaining a rainy day fund... I can guarantee you it WILL rain.. and hard... at least at some point in your career.
6) NEVER, EVER, EVER leave a 'job' or a project on bad terms if you can possibly help it. Bad press spreads like wildfire.
7) Get used to having zero job security. I become 'unemployed' on a regular basis;. Every time a job is finished! Granted, I've got projects coming and going in and out of my shop on a continuous basis, so I'm never truly 'unemployed' for long, if at all. Even if I were unemployed (for real), I've got absolutely ZERO chance of getting anything from the government. Forget about that.
I had six months of only 50% capacity in 2010 and even cut my fees for a while just to keep the jobs that were still alive in my shop. It worked, too.. Now I'm working all I want and fees are back to the original levels. My customers and I worked together to get through a tough spell.
8) If you do a good job and make the principal's professional life easier, he'll come back to you again and again and again.... IF he has work to do.
9) Never let any principal 'own' you. It needs to be understood that as a free agent, you can work for whoever you like whenever you like. That said, it's incumbent upon you to have good time / schedule management. Don't take on a project unless you're sure you can handle it from both the technical AND schedule perspectives.
10) Get ready for 60 hour weeks bracketed with 10 hour weeks. My work load is almost always 'lumpy' and always unpredictable. Has never been otherwise.
11) Develop relationships with everyone you can.. especialy contractors and suppliers. You'd be amazed how many doors it can open. If your principals are avaricious and you're any good, they'll do everything in their power to keep you a secret. It's vital to be sure you don't get stuffed into a flat file drawer. This requires very careful political maneuvering. Has always been part of the game and always will be.
12) Constantly broaden and sharpen your skills. This means less time on the surfboard and more time reading / studying / researching / qualifying. Absolutely crucial - especialy these days.
That's the first dozen. There's more, but I'll spare you, for now. The guy you're working for owes you only one thing - prompt payment at the agreed rate for work performed in the correct time frame - period. If you screw up the negotiation on the first day, you're stuck until that project is done... unless the principal is a good guy / gal and gives you a bump for your obvious extra effort (happened to me a few times when I was a kid).
There are lots of personalities out there. Some of my regular principals are challenging (they know who they are! <g>) and some are really easy. I've got 6 firms I work for pretty regularly, and two of them have had me around since I started in the biz. You'll gradually build up a diversified client base which will give you at least some 'job security'. It takes time, patience and diplomacy.
I've always thought draftsmen / aspiring Architects / production people should think of their careers more like building contractors than like office workers. In the old days, we were indeed the contractors! <vlg>
Don't be in this business if you don't Love it.
I Love this work. I'd do it for free if I didn't have to feed my family and enjoy some small comforts. It's the greatest vocation in the Universe.
Marry wisely. An Architect's wife is a very special creature. Mine is a Rock. I'm keeping her for another 25 years, for sure.
Long Live the Mother Art.
Make that "An architect's spouse…" please. Jeez, it's 2012.
Donna,
You're absolutely right - my apologies. Thanks for calling me on that. I actualy went gender neutral in one part, then slipped back into Redneck!
I'll mind myself on that.
Thx DMS. Just a touchy spot with me! Excellent advice for the self-employed, otherwise.
Donna,
Good deal! - Hope I've made my first friend at Archinect.
Working at home, I get 'community challenged', so it was a real delight to find this site with folks talking about things specific to our trade. See you 'round the forum!
DMS-USA, great advice. That list can be expanded, of course, but top 12 should include a few words on "art of fee negotiation".
It requires letting go of salary mentality. Instead of asking 'how much am I worth?' the question is 'how much is the task at hand worth?'. Once you do that, you quickly become skilled at gaging the potential contracts and can offer flexible rates. I usually offer a range of hourly fees to the client (depending on each task), and offering project flat fee takes the out the guesswork on certain projects.
This sub-discussion should be its own topic.
25 years? why get married.
Rusty - Yes.. Setting your price takes some practice! But it only takes a few projects to get your sea legs for that. I do about half the jobs hourly and half flat-rate. Depends on the type of job.. and often the customer's preference.
One Lost - She's a helluva good catch. We're old fashioned... what can i tell ya'? <g>
G'nite!
DMS,
very informative post. However I think the problem in this case is that the "contractor" was treated exactly the same as an employee, yet denied the benefits which are legally required in that situation.
My understanding of contract work, and please correct me if I'm wrong, is that the firm is due only a specific product at a specific time and cost.
Meaning that it is up to the contractor to set their own schedule. They should be able to work from home or come and go as they please. Tardiness is not something that should ever be an issue.
Again, if i'm wrong please correct me!
@DMS-USA
true - there are a lot of benefits to being an independent contractor and it's good practice for running your own shop (and that you really need to understand your legal rights), but no one should EVER be forced/coerced/deceived into this arrangement if they aren't looking for it - and it's good that the government has finally started cracking down on what is essentially exploitation of inexperience just to avoid paying taxes. This is absolutely unethical (and illegal) behavior and I think there should be far more severe punishments aside from the monetary penalties from the IRS if you get caught.
if you want to hire an independent contractor - advertise the position as a contract position - be upfront about it - don't go around tricking recent grads. I do think people should know about this option and that it is something worthwhile pursuing during lean economic times, but for those in positions to hire people, trying to figure out how much you can get away with is reprehensible.
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