I have been working for a friend/company for the past 18 months. He issued me a 1099 for 2008 and is trying to do it again to me and numerous other employees.
He has all these other guys convinced that it's totally legit and he doesn't have to pull taxes even though we are all paid hourly. He furnishes all the materials, most of the tools, etc., etc. supposedly pays workman's comp for all of us.
I estimate and execute 90 percent of all the proposals and contracts. I also provide all the site supervision, material take offs and deliveries and collect customer balances. He juggles a checkbook and works full time in the mill.
He is just holding the fact that the economy stinks over everyone's head and if they raise a stink they will never see any more work. Our agreement was verbal that he and I would split profits on a job by job basis. Of course that has never happened.
I have complete documentation of all the jobs I wrote, sold and collected balances on. He is running this business as a DBA/sole proprietor. When I questioned him, he fired me and kept a couple thousand dollars worth of my tools.
I know of numerous cash jobs he's done. He's cheating on his insurance (comp) not disclosing the true dollar amounts. I just don't know if there's anything I can do about all this, besides walk away, lick my wounds and eat the 40K plus in back wages/profit sharing he owes me? I need some advice. DLP