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Old 07-21-2012, 05:27 PM   #1  
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Joined APC: Jun 2012
Posts: 161
Default Payroll Misclassification Tax Dodge Part 135

I think it's become painfully obvious, as a part of the destruction of the middle-class in the USA, that lots of Part 135 light charter companies these days are in direct violation of IRS law when issuing 1099's to pilot employees that are supposed to be issued W-2.

Every Part 135 pilot is living by the schedule put together by the certificate holder, using the company equipment provided by the company and being told how to dress. That's an EMPLOYEE, not a contractor.

Well, the IRS is now cracking down on blood-sucking companies that make lives, already hard, even harder on pilots.

If you're a Part 135 op owner, it's time to play it by the book and stop screwing over your employees. You aught to be ashamed of yourselves! The pendulum is starting to swing back to the favor of labor.

IRS and DOL Worker Misclassification Enforcement Steps Up

To anonymously report intentional payroll misclassification at a Part 135 Operation, follow this link.

Government Contacts « No Misclassification!

I posted the same links over in the Flight Schools forum.

Here's more IRS info. More specifically, go to page 7.

You are an employee when told:

· When and where to do the work.
· What tools or equipment to use.
· What workers to hire or to assist with the work.
· Where to purchase supplies and services.
· What work must be performed by a specified individual.
· What order or sequence to follow.
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Old 08-01-2012, 06:04 PM   #2  
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Joined APC: Jan 2009
Posts: 379

Be prepared for that 135 job to disappear.

W2 means purchasing workmen’s comp insurance so perhaps your 1099 employer will fold the operation because the insurance premiums will make his/her operation uncompetitive.

Even Fred Smith was paying people on 1099's until he got caught.
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Old 08-01-2012, 06:20 PM   #3  
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Joined APC: Aug 2008
Posts: 193

Piloting is one of the top 3 or 5 riskisest occupations.
So expect workmans comp premiums to be high.

I have even heard of CFI's on 1099's.

A marginable operator may go out of business if faced with workmens comp premiums. I have heard of roofer employers paying a 100% rate of pay as workems comp.

Heck - for a $90,000 Piper Seneca a 135 ops is paying $14,000 /yr just for hull and liability.
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