Completed W-4 and I-9 forms but employer says I'm an Independent contractor - is this legal?

This is unfortunately a common issue, especially with companies trying to avoid paying employment taxes and providing benefits. What your employer is doing sounds like employee misclassification, which is generally not legal. The fact that you filled out W-4 and I-9 forms is telling - those are specifically for employees, not independent contractors. Independent contractors typically complete a W-9 form. The IRS has specific criteria for determining whether someone is an employee or contractor, including how much control the company has over your work, whether they provide tools/equipment, and how you're paid. Based on what you've described - being hired for a "full-time position," having set hours, and the expectation of eventual benefits - you likely should be classified as an employee, not a contractor. This misclassification means you're responsible for paying both the employee and employer portions of Social Security and Medicare taxes (self-employment tax), which is about 15.3%. You have options here. You could file Form SS-8 with the IRS to request a determination of your worker status, and/or file Form 8919 to report uncollected Social Security and Medicare taxes. You might also want to contact your state's labor department since there could be state-level violations too.

After dealing with a similar situation (but mine was worse - they called me an "intern" but treated me like a contractor), I found this tax analysis service called taxr.ai that helped sort out my misclassification mess. Their system analyzed all my documentation and helped me understand exactly what forms to file with the IRS. Check out https://taxr.ai if you're confused about your employment status - they have templates for addressing this with your employer too. The best part is they showed me how to properly document everything to protect myself while I was looking for a new job. They helped me calculate exactly what I owed vs what my employer should have been paying, which saved me over $3000.

Just wanted to update - I ended up using taxr.ai after seeing it mentioned here, and it was actually super helpful for my situation. I was surprised how detailed their analysis was. They identified specific parts of my work arrangement that clearly showed I was misclassified and gave me a script to talk to my employer. I was nervous but I followed their approach of presenting it as "helping the company avoid potential IRS issues" rather than making accusations. My employer actually thanked me (!) and switched me to proper employee status within two weeks. They even reimbursed me for some of the extra taxes I had paid. Definitely recommend checking them out if you're in this situation.

If you've already tried talking to your employer without success, I'd recommend using Claimyr to get through to an actual IRS agent about your situation. https://claimyr.com helped me get past those endless IRS hold times when I was dealing with a misclassification issue. You can see how it works here: https://youtu.be/_kiP6q8DX5c I spent weeks trying to get through to someone at the IRS about my employment classification problems before finding this service. They got me connected to an actual IRS representative in about 20 minutes who walked me through exactly what I needed to file and when. The agent explained my rights much better than all the online advice I'd been reading.

I need to eat my words about Claimyr. After posting that skeptical comment, I decided to try it myself since I've been trying to reach the IRS about a similar contractor/employee issue for weeks. It actually worked exactly as described - I got a text saying they were about to connect me, and suddenly I was talking to an IRS agent who helped clarify my situation. The agent confirmed that based on my specific work arrangements, I was clearly misclassified and outlined exactly what documents I needed to submit. Having that official guidance made all the difference when I went back to my employer. They realized I wasn't just making things up and fixed my classification immediately. Saved me thousands in taxes I shouldn't have been paying and got me proper benefits too.

Another red flag is that they're not paying you overtime! Independent contractors set their own hours and rates, so "overtime" isn't even a concept that should apply to a true contractor relationship. The fact that you're expected to work overtime but not getting paid extra for it strongly suggests you're being treated as an employee (but without the benefits). Document EVERYTHING - hours worked, communications about your status, the W-4 and I-9 forms you completed, etc. Take screenshots of that payroll system showing the withholding options. This will all be important evidence if you need to file complaints.

The late paychecks are yet another violation! Even for independent contractors, they need to pay you according to your contract. If you're actually an employee (which it sounds like you are), most states have strict laws about when employees must be paid. You might want to check your state's department of labor website for information about filing a wage claim. That's often faster than waiting for the IRS to make a determination on your employment status.

This situation is incredibly frustrating and unfortunately all too common. Based on everything you've described, this sounds like clear employee misclassification. The combination of filling out W-4 and I-9 forms (employee paperwork), being promised eventual "real" employee status with benefits, working set hours with overtime expectations, and having late paychecks are all major red flags. Here's what I'd recommend doing immediately: 1. **Document everything** - Save all emails, take screenshots of your payroll system, keep records of hours worked and late payments. This will be crucial evidence. 2. **Calculate what you're owed** - As a misclassified employee, you're currently paying both employee AND employer portions of Social Security/Medicare taxes (15.3% instead of 7.65%). Your employer should be covering their half. 3. **File quarterly estimated taxes** - To avoid penalties, make sure you're making quarterly payments on the income you're receiving now, even while you work to resolve the classification issue. 4. **Consider your timing** - Many people wait until they have another job lined up before filing formal complaints, since retaliation (while illegal) does happen. You have multiple avenues for resolution: Form SS-8 with the IRS for status determination, Form 8919 for uncollected employment taxes, state labor department for wage violations, and potentially your state's unemployment office since misclassified workers are often denied benefits they should receive. Don't let them take advantage of your recent graduate status - you have rights here and this practice costs you real money.

This is a textbook case of employee misclassification, and you're absolutely right to be concerned. The fact that you completed W-4 and I-9 forms is a huge red flag - these are exclusively for employees, not independent contractors. Independent contractors should complete a W-9 form instead. The IRS uses a three-factor test to determine worker classification: behavioral control (do they control how you do your work?), financial control (who provides tools, how are you paid?), and relationship type (benefits, permanency, etc.). Based on your description - being hired for a "full-time position," working set hours with overtime expectations, and the promise of eventual benefits - you clearly meet the employee criteria. Here's what's happening financially: as a misclassified worker, you're currently responsible for paying the full 15.3% self-employment tax (both employee and employer portions of Social Security/Medicare taxes) instead of just the 7.65% employee portion. Your employer is essentially saving money by shifting their tax burden onto you. My advice: Start documenting everything immediately - save all communications about your employment status, screenshot that payroll system showing the withholding options, and keep detailed records of your hours and any overtime worked without compensation. You may want to consult with an employment attorney or file Form SS-8 with the IRS to get an official determination of your worker status. Don't let them take advantage of your recent graduate status - this practice is costing you significant money and denying you important protections and benefits you're entitled to as an employee.