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View Full Version : Part time employees 1099?


hustler king
03-26-2009, 10:27 PM
I'm going to have 6 or 7 guys that are going to work one days week for maybe 10-12 hours a day, how do you guys do your 1099's because i've been hearing several different things.

ryansbob
03-26-2009, 10:32 PM
If they don't bring their own tools, get to the jobsite on their own, and carry their own liability insurance they aren't a sub-contractor so you'd better not be 1099ing them. If you do and the irs would find out (all it takes is an angry customer to report you) you are responsible to pay their taxes, because the irs will consider them an employee and you are responsible to take out and pay employee taxes. Use a payroll service and do the right thing. Only other option is to hire illegals because if they get hurt they will run, the white guys will sue your pants off if they are a sub and get hurt on the job.

DuallyVette
03-26-2009, 11:49 PM
All true..except I think that illegals now feel entitled to freebee's. Also when the IRS asks the worker to pay his taxes, he'll get that puzzled look, and then the lCO gets to pay the taxes. A disgruntled worker will also turn you in

TMlawncare
03-27-2009, 12:47 AM
If they don't bring their own tools, get to the jobsite on their own, and carry their own liability insurance they aren't a sub-contractor so you'd better not be 1099ing them. If you do and the irs would find out (all it takes is an angry customer to report you) you are responsible to pay their taxes, because the irs will consider them an employee and you are responsible to take out and pay employee taxes. Use a payroll service and do the right thing. Only other option is to hire illegals because if they get hurt they will run, the white guys will sue your pants off if they are a sub and get hurt on the job.

Your answer is right on the money.

grandview (2006)
03-27-2009, 06:27 AM
You maybe able to claim them as causal labor. Anything under 600.00 . But check with a bookkeeper or accountant.

Fvstringpicker
03-27-2009, 09:55 AM
You maybe able to claim them as causal labor. Anything under 600.00 . But check with a bookkeeper or accountant.

You may want to check this out. The $600 is the lower limit for meeting the 1099 filing requirement.

Roger
03-27-2009, 10:29 AM
The title of your thread speaks of the problem -- employee and 1099 don't go together. ryansbob spells out the issues as I understand them to be.

JB1
03-27-2009, 10:33 AM
Here it goes again

PROCUT1
03-27-2009, 12:01 PM
This topic has come up a million times before.

You cannot 1099 an employee.

grandview (2006)
03-27-2009, 12:38 PM
If your only going use then a couple of times try and go through a temp agency . This way everything is taken care of tax wise and comp. wise.

Littleriver1
03-27-2009, 04:32 PM
Every thing that is stated is true except one thing. You do not need to hire a payroll company to do your payroll. You can do it your self. it is easy to learn and easy to do. The main part is knowing how much to with hold and what forms to use and when and where to send it. If you get an accountant he will have you give him all the information he needs to fill out the forms. Then you get back the forms to sign and he will tell you to address the envelope and write a check and stamp it and mail it. Now you can learn how to do this on line and file and pay on line. Some states even let you complete the forms on line directly to their site.

DuallyVette
03-27-2009, 11:50 PM
You also don't need an accountant. You can probably get a tax number on the IRS web site...and follow the yellow brick road.

ChristianJ318
03-28-2009, 02:40 AM
FACT: IRS Form 1099MISC must be issued to each U.S. independent contractor that has received payments in the calendar year that total $600 or more for services (including parts and materials). Form 1099MISC must also be issued to U.S. individuals that receive awards, honorariums, and prizes in the calendar year that total $600 or more.

DuallyVette
03-28-2009, 05:18 PM
FACT: IRS Form 1099MISC must be issued to each U.S. independent contractor that has received payments in the calendar year that total $600 or more for services (including parts and materials). Form 1099MISC must also be issued to U.S. individuals that receive awards, honorariums, and prizes in the calendar year that total $600 or more.



That's all very nice...but everyone else's point here was that these workers were EMPLOYEES. You can call them contractors, but your lying and opening yourself for some problems...not worth it.

TexasFire221
03-28-2009, 08:06 PM
My CPA told me I could.

PROCUT1
03-28-2009, 11:30 PM
My CPA told me I could.

Your cpa is wrong

LouisianaLawnboy
03-28-2009, 11:32 PM
My CPA told me I could.

GET ANOTHER CPA NOW! A good CPA will save you money, this one sounds like it will cost you money.

Fvstringpicker
03-29-2009, 12:23 AM
To be an independent contract, they will have to meet the test for I.C.

ChristianJ318
03-29-2009, 11:05 PM
That's all very nice...but everyone else's point here was that these workers were EMPLOYEES. You can call them contractors, but your lying and opening yourself for some problems...not worth it.

I think some of you may have taken my post in the wrong context. I was only providing the correct information for 1099 requirements to the original poster of this thread.. I know the difference between an independant contractor and an employee very well.

DuallyVette
03-30-2009, 01:16 AM
I'm going to have 6 or 7 guys that are going to work one days week for maybe 10-12 hours a day, how do you guys do your 1099's because i've been hearing several different things.

SEE original poster.

He has 6 or 7 guys working part time. They appear to be part time employees. Unless: they have their own equipment, set their own schedule, and work for other contractors also.

A friend of mine was once a building contractor. He used the same "subs" full time. They had their own tools, set their own schedules, but only worked for him. When a framing contractor, didn't pay his taxes, the IRS decided that my friend should pay the $20k that the sub couldn't come up with. These guy's were real subs IMHO. IRS says "when in doubt , withhold 20%, send to IRS...let sub file to retrieve any that was over withheld.

How do you do your 1099's ??? - answer: You type the contractors name, address, tax ID number, and fees paid, in the appropriate boxes on a 1099 form. Send two copies to the contractor, one to SSA, and keep a couple for yourself (each copy has verbiage on it with directions)