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  #1  
Old 10-02-2009, 12:43 PM
Tulip Tulip is offline
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Sweat Shop Wages

I would like some information on being paid as an independent contractor.

When working for a work at home crafting company you are being paid as an independent contractor. After you earn six hundred dollars you start paying taxes.

When reading the web sites for the work at home craft companies you are seeing a referral to how much you can make an hour. The reality is you make around one to three dollars an hour.
I am wondering legally how the online company can pay you an hourly wage which is under minimum wage and say they are selling the craft themselves. They sell the craft online or at craft fairs and or outlets. Than the company pays you the crafter a sweat shop wage per hour and than of all things you end up paying taxes on your earnings.

How is this legal?


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  #2  
Old 10-02-2009, 01:33 PM
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moneymaker1008 moneymaker1008 is offline
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Re: Sweat Shop Wages

Most companies that offer at home assembly work are not legit. In fact, over 99% of them are scams. But if there are any legit companies that do that, they're able to because it's not a regular job. You don't work regular hours. If I'm correct, there's no way they would even know how long you really worked.

But, as I've said, most are not legit so you won't get paid at all. IMO, it's best to stay away from these types of programs.

-Danielle



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  #3  
Old 10-02-2009, 02:15 PM
Tulip Tulip is offline
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Re: Sweat Shop Wages

Well Moneymaker your reply does help.
You are not recording any hours. It is just how many crafts you send into them for payment. Even though the companies refer to hourly wage your wage is not paid to you by how many hours you worked. I guess when a real job pays you a salary wage they still have to be paying you at least the hourly minimum wage. I know some salary jobs end up with a person working far more than forty hours a week. I am now getting more mixed up.
This internet work at home stuff gets me confused. It seems illegal to me but I do not know the rules when it comes to the internet and salary for your job. Well where I am going with this is I have made over six hundred dollars this year working for a crafting company. But they did not ask for any information other than my name and address. Would I still have to pay taxes on what I made this year? Can I dodge paying taxes without getting caught. Can they just tell the IRS your name and address without your SS number?

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  #4  
Old 10-02-2009, 02:33 PM
Tulip Tulip is offline
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Re: Sweat Shop Wages

Well I did a bit of research to answer my own questions.

When you are an independent contractor there is no minimum wage law or overtime law. You do have to pay taxes over 600 dollars made in a year. Yes the company should get your SS number. If they do not report your earnings they are subject to fine and penalties. And even though they did not ask for my SS number I am responsible to report my earnings. It is called fraud if I should get caught.
Looks to me like the company I am working for is breaking the law.
Not a surprise.
Now I need to decide if I want to be a criminal or not.

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  #5  
Old 10-02-2009, 03:46 PM
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katiescorner katiescorner is offline
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Re: Sweat Shop Wages

The confusion is that you feel like you are working FOR them. The reality is that you are working for yourself as an independent contractor. You are not an employee.

It's like you saying you have a crafting business and I contract with you to make me 250 beaded necklaces but they have to be made to my specification or I won't accept them. Once I accept them I will pay you a flat fee of $500. Now if it takes you an hour to make each necklace.. you won't be making much money. But if you can make a necklace every 5 mins, it won't be that bad.

If you KNOW it's going to take you an hour per necklace and you still accept my contract.. well then.. that's bad business on your part.

Quote:
Originally Posted by Tulip View Post
Well I did a bit of research to answer my own questions.

When you are an independent contractor there is no minimum wage law or overtime law. You do have to pay taxes over 600 dollars made in a year. Yes the company should get your SS number. If they do not report your earnings they are subject to fine and penalties. And even though they did not ask for my SS number I am responsible to report my earnings. It is called fraud if I should get caught.
Looks to me like the company I am working for is breaking the law.
Not a surprise.
Now I need to decide if I want to be a criminal or not.

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  #6  
Old 10-03-2009, 06:52 AM
Tulip Tulip is offline
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Re: Sweat Shop Wages

Thanks Katiescorner. I think the reason my mind keeps going back to an hourly wage is because this way of thinking about payment is the way it has been discussed on message boards.
The way you worded being an independent contractor is totally the way it is and has to be looked at. With crafting they always indicate you will speed up after practice. So when you first purchase a kit you really have no idea how much time it will end up taking you to make one piece.
But in the end this is my decision and if I feel I am under paid because of the time it takes than I need to quit making the craft.
As far as taxes I again am totally responsible for paying that tax whether the company got my SS number or not.
I do think the crafting web sites can totally mislead you in how much money you can make with buying a kit and making their crafts. But in the end it still is your responsibility to research and realize how the payment works.
I really do not know how I was thinking in such a careless manner. Some how I got off track with my realizing I am an independent contractor. I do not think I ever really understood what being an independent contractor meant. Just crazy of me.
Thank you for opening my eyes. I have been a sleep. This has always seemed to me like a job and I was an employee.



Last edited by Tulip : 10-03-2009 at 07:04 AM.
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