Originally Posted by jsslawncare
You know how the FBI are on the internet looking for sex offender's? I think Greg is an IRS agent looking for cheater's. I'm just a grass cutter with an accountant. I'm not even a landscaper!
With all due respect to you and your accountant, you are BOTH wrong. Very, very wrong. I was a full time insurance agent for 20 years and I still work part time when I feel like it. With that being said, I have had many clients get busted for using 1099's when they should have been using a W2. Their accountants also told them it is OK to do so. To them, it makes sense. They don't understand insurance. Why should they?, nor do they understand labor laws. Here again, why should they? They are accountants. That's all they do.
What you are doing Sir is the same thing as asking your Doctor to give you advice on how to fix your mower. He may be able to tell you that gas fumes and grease and oil on your hands may cause cancer, but that's about as far as it goes. I am NOT
trying to insult you or make you angry. I am simply trying to save you a LOT of $$ because if you get caught? it will cost you a lot.
When you 1099 a worker, then that worker is considered a sub-contractor. A true sub is a person or business that gets 70% or more of their income from another source in the same field of work that you do. IE, if you had a large mulching job that you had to get done in a short amount of time, you may hire another local landscaper to help you. You then 1099 him/her at the end of the year for whatever amount you paid them.
If you hire someone to help you do mulch or cut grass on a regular basis and you tell them what time to show up, what time to leave and you provide all of the needed materials to complete the job, they are your employee and you must give them a W2. You must also provide WC (workmans comp. insurance) and withhold taxes from their check. What I have just posted is only the tip of the iceberg and some of the links already proved by other posters will give you more information. I highly suggest you read them.
You may never get caught? as I know many LCO's who do this all the time, even though they know it is wrong because it is easier and cheaper than doing it the right way. The $hit will hit the fan when one of your 1099'ers you have working for you get hurt or try to claim unemployment compensation. That's when the guys I had as clients got nailed. While I hope you never do get caught, the clock may be ticking?.....................................
Originally Posted by Greg78
Darn you figured me out..... Just don't want to see anybody led down the wrong path.
You might want to look into a new accountant.
I noticed you didn't answer my question though.
Greg, I do agree with you on the accountant thing!