Can my boss switch me from subcontractor to payroll employee at any time?

Yes and no. In most jobs you're an employee at will. This means that the company can change the terms of your employment and even let you go at their whim. As far as employee vs contractor, there are some specifics. The IRS actually has several tests to determine if you're a contractor (paid flat rate, no benefits, no overtime) or if you are a direct employee. But if you boss tells you you're changing from one to the other....you would need to sue the company for benefits (or go to the attorney general). Not likely you'll WANT to continue working there at that point.

The tests:
-If your boss sets your schedule and gives direct supervision for your job, then you are an employee. If you are _required_ to be at your work location on a specific schedule (like shift work) then you are an employee.
-If you only work for that one employee (no other customers for your contracting business) then you are an employee.
-If your boss provides tools & materials for your job then you are an employee.

Contractors are generally hired on a job basis, they are free to pursue other opportunities, and they are responsible for managing their own time to get their work done.

Things are further complicated if you work for a personnel service...they can be a subcontractor that HIRES you as an employee. Thus YOU are the service's employee....and the service is the company's subcontractor.

There is a lot of grey area, but if the IRS finds out that an employer has been mis-classifying people then the IRS will go after the company for withholding, penalties, and interest. There have been several high-profile cases of mis-classification (I think Home Depot was involved in a recent case where full time employees were being denied benefits because they were being called "contractors.")

Yes they can.

your boss can kick you in the asss and tell you to get lost at any time.

he can if he wants to,but its gonna cost him with the extra taxes and workman comp,but its totally up to you if you still want to work for him

The determination as to whether you are a sub contractor or an employee is not his to make. The IRS has rules to determine that. So if he switched you it could be becuse he figured out he was in violation of thsoe rules. They can be found at IRS.gov.

See this link for more on what the IRS has to say about it.

http://www.irs.gov/businesses/small/arti...

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