You should be glad to receive a larger paycheck of... $12/hour?!  ha ha ha.  Yeah he's really covering your overhead/healthcare costs with that hefty wage.

Working as a contractor, as you know, is governed by very specific guidelines set by the IRS... among which: they can't require you to simply come to the office for set hours to do whatever work they hand you during that time.  The idea is that you are a self-employed contractor contracted for a specific piece of work that you conduct on your own and deliver to them upon completion.  If they are making you simply be present for regular office hours, without a set, pre-determined contracted chunk of work, and if they are overseeing your execution of that work, then they are not lawfully employing you as a contractor and they are skirting their required payroll taxes.  

If they are in compliance with the IRS regulations governing contract work, then at that point it's up to you to decide if the amount of money is worth it for you.  Given that self-employment taxes are higher than income taxes, and you can estimate a good 35% gone to pay your self-employment taxes at the end of the year, that would leave you with about $7.80/hour.  AKA barely minimum wage, depending on what state you're in.  Is that worth it to you?  It wouldn't be to me.  You'll get much more waiting tables.  (However, my guess is that this job is NOT in compliance with self-employment regulations, and therefore the business owner is simply a shyster trying to pull the wool over both your eyes and the IRS', and get away without paying payroll tax while simultaneously trying to make you feel grateful for the crappy way he's treating you.  Good riddance, in my opinion.)

The guy was right, it is a very common arrangement.  I wouldn't have complained.  They probably figured that if you were complaining about being offered a job, you probably complain a lot regardless and might be one of those kinds of people that feels entitled to everything.  You've now brought your complaining to the internet!

side note... There is so much emotional manipulation in this industry, it's disgusting.  When I worked in another industry, run by actual business professionals, I was shocked at how up-and-up they are compared to architects.  And these were unashamed rampant utilitarian capitalists!  But at least they treated each other with honesty and fairness, instead of playing these kinds of emotionally manipulative games that you find all over the arch. industry.  Ugh.

they probably should have posted the gig as a 1099. regardless, you can't go indepedent and somehow suddenly cost less / lower your fees - not at the levels you're talking - you'll just dig a hole for yourself. Starving yourself by your bootstraps, so to speak. are you complaining and a complainer? - seems more like you're unsure about some finacials aspects of your decision and need to keep doing some research on that end - though that will probably be like pulling teeth with architects.

The owner said this is a common arrangement that most people prefer, which doesn't make sense to me.

as manta stated, this arrangement is illegal (office admin as IC?  wtf?).  anyway - next time someone pulls that shit on you, just say the rate is double (or some absurd amount) so you can cover your expenses - and that before you start work you'll need a signed contract outlining the scope of work (which you get to draft).  oh - make sure you mention in passing that it'll include some "travel expenses" and "extra service provisions."

the IC thing crops up a lot - I wish this was covered in everyone's pro-practice course.  people don't know their rights.

No such thing as an independent contractor admin worker. I say you dodged a bullet there. IRS would love to know about this "employer". I'd turn him in.

I've been fed the same line about 1099 being a better situation—it's bull, and the guy feeding it to you knows that. Right now this feels like it sucked, but in all likelihood it would've ended badly, whether that be this week, next week, or next year. The guy was trying to take advantage of you, you asked the right questions that signaled you weren't a sucker, and he went for someone else who was. Bullet dodged.

thanks, i feel better about this.  

looks like the fine for falsely classifying employees as contractors is $15,000

forgot to mention i work as a contractor for my old firm, still underpaid, but 3 times the offered rate

Yes independent contractor  is supposed to pay a higher rate - because you are taking the tax load, the overhead, and the health care costs onto your own head rather than the employer's.  In exchange they get to skip paperwork hassle & not worry about having to officially hire/fire someone.  It can be a good deal when it's fairly executed and appropriately (read: highly) compensated, but given that it is generally a less stable arrangement than regular employment (and that it is much harder to get health ins on one's own than it is as part of a company) I wouldn't ever say that most people prefer it.

btw in other industries typical contractor compensation is 3x accepted wage rate for the work.

And yes, this needs to be covered more in pro practice courses.  My very first arch. job illegally listed me as a 1099, without ever discussing this with me (and definitely without complying with IRS regulations) and as a result I found myself audited on my tax return at age 18.  Luckily I confronted the firm & they agreed to pay the cost of the tax to me but it was still a pretty shitty situation.

In addition to reporting them to the IRS, you should also notify your state dept. of labor and industry (or whatever it is where you live). L&I tends to take a very dim view of this practice.

I would take a 1099 any day. That means you own your own business. Woohoo!!! At $12 an hour, however, you would need to charge +/-$35 an hour for 1099 work. This guy is a douche bag for not disclosing. Better to not be there. Go find some real clients and forgot about looking for a job. Make your own!

"The #1 guideline to success is you must be in business for yourself. When you work for someone else, you sell your time at wholesale to your employer, who then re-sells it at retail to the customer."
-- J. Paul Getty

 I think I should be happy not to be involved with this guy, but I'm still pissed to have lost a job.

Am I wrong on this?

I'll respond just to this bit.  You're right to be happy.  You should be happy.  You should not be pissed.  Shit happens, and there are evil people in the world.  It's best that you don't have this guy in your life or near you on a daily basis.  I wish you the best of luck in your future endeavors.

Wow, this thread is enough to turn me Republican. He applied to a part-time ad on Craigslist. This screams IC to me. Yes, he should have explicitly stated that in the ad, but anytime you see part-time, it's a pretty good sign that it will be contract, particularly for this type of work. (It was also posted on Craigslist; what were you expecting?)

Sometimes you have to do a little work to get your foot in the door (and quite honestly this doesn't seem like the type of work you would want to do full-time anyway). All of the complaints in this thread and threat of legal action screams entitlement. You can complain all you want, but somebody else will gladly take the job.

Um, When discussing compensation, the worker needs to know what is being negotiated, doncha think won don?

won and done

I have been on the same IC 1099 gig for 2.5 years - at least I am working - in this economy you get you can get/earn - people need to be more self reliant - People need to to do what it takes to get the work they want - sometimes 1099 type stuff is ether going to be step in that direction(it's experience) or it's going to be permanent - I know way too many people who turn their noses up at this type of work(waiting for the economy to improve) and end up being unemployed for 2 years or more - the recession is permanent for those who won't tkate the initiative to do what it takes. 

entitlement? not in this economy

So whats unfair?

fairness needs to be earned - Ya know I got thrown to the end of the line in 2009 and am just making do with what I got - nobody owes anyone anything

I agree that 1099 status should have been explicit in the ad (I stated that above), but I think in general the person posting the ad was transparent about the terms of the contract upon follow-up. I also think there is a certain expectation around job postings on craigslist and implicit meanings associated with terms like "part-time" that job applicants should be aware of. If you are looking for work on craigslist, it ain't gonna be SOM.
 

Won, I have a used car I'd like to sell you...

If you are looking for work on craigslist, it ain't gonna be SOM.

that's for sure - I went from SOM to craigslist - 

the OP clearly did not know that the job being offered was under contract like that.  The position, which included showing up to the office and doing administrative tasks, is not consistent with IC work for a draftsperson as advertised.  There might be some assumptions here, but the problem is that the guy is intentionally misleading his applicants and trying to manipulate them.  it's not healthy to work with people that try to lie and deceive their employees for their own gain.  it's a good thing that there are labor laws to protect people who may not understand what they're being sold (since it's packaged in a lie) from vultures like this. 

again, that's based on some assumptions and maybe the guy is actually a saint and I misread the intent of the post.  The $12/hr and "most people prefer 1099 status" would suggest that he is not a saint.

there isn't anything wrong with IC work if it's fair and honest.  also, i know nothing about job postings on craigslist so maybe there should be an assumption that the guy is out to hurt you.

I know way too many people who turn their noses up at this type of work(waiting for the economy to improve) and end up being unemployed for 2 years or more

that is my biggest fear with this.  I agree that great jobs aren't posted on craigslist, but I hope that honesty isn't too much to ask. 

An old superintendent used to tell me, "If they're not lying to you, they're lying to you."  

In this day and age I would not believe that anyone has your best interests in mind... and why should they. You should take care of that.

(ok. ok... maybe your parents?)

As my father always says "you need to wipe your own goddamn ass"

Amen.

This thread is becoming an amazing source for inspirational quotes. So far:

"You've now brought your complaining to the internet!" -- Due89

"The #1 guideline to success is you must be in business for yourself. When you work for someone else, you sell your time at wholesale to your employer, who then re-sells it at retail to the customer." -- J. Paul Getty

"You can complain all you want, but somebody else will gladly take the job." -- won and done williams

"If you are looking for work on craigslist, it ain't gonna be SOM. -- won and done williams

"If they're not lying to you, they're lying to you." -- Wurdan Freo's old superintendent

"you need to wipe your own goddamn ass" -- Xenakis' father

Anyone have a link to a place where you can actually report unfair labor practices?

I never knew how bad some of my past jobs were until reading through things like this, because as Xenakis points out, many of us just wanted whatever we could get, or were so "un-entitled" that we compromised when it was innapropriate. Of course we didn't realize that taking these types of exploitative jobs hurts everyone in the profession.

i like that idea 

yo!

that way i continue to receive full unemployment too.  otherwise i get a % based on how much i earn.

Nicholas

Yes I do regret having to lo ball the profession - in hindsight I really should have left rather than trying to buy my way back in. I paid a dreadful price one I don't wish on anyone.

shuellmi - Now you're just as bad as the potential employer. Trying to rip someone off in this case, the taxpayers...  while paying no taxes. From high and mighty... to the truth.

Who do I report you to?

Good thing there's laws for people like shuellmi. Don't ya think curtkram?

sounds to me like shuellmi hasn't actually done anything wrong and is just venting because (s)he wants the opportunity to work for a living.  you may have noticed in this thread that shuellmi was not able to accept the job.  i can certainly see how you would be upset with someone making $24,960/year before taxes, insurance, or sick leave trying to screw over us tax payers though.

i think it's best if people act as honest as they can.  this would include both the employer and employee in the hypothetical scenario you're talking about.  keep in mind people with positions of authority tend to be held more responsible than those subordinate to them.  in the hypothetical situation of an employer offering an employee an under-the-table cash job as suggested by handsum, it would be the employer that would be held responsible.  it might be the employee's fault if they tried to force or coerce the employer, but that situation is unlikely as the employer pretty much always has the authoritative position.  in my opinion, the kitchen re modeler that wants to screw over their employees is not too big to fail.

right now those working are scared shitless to even mention that they once upon a time had to do a job search online let alone looking for a gig on craigslist.

don't worry, i won't be working under the table, and as it stands, I won't be working at all.  

I'm just pissed that I lost out on a crappy job.

I pay quarterly taxes for my other contract position