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  #1  
Old 08-20-2012, 06:37 PM
LGL LGL is offline
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"1099 employees" Legal or Illegal?

Can it be done legally?
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  #2  
Old 08-20-2012, 06:41 PM
DEPENDABLE LANDSCAPING DEPENDABLE LANDSCAPING is offline
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I am not an accountant, but i do believe it is illegal to 1099 your employees. To pirposely not pay an employees taxes and comp insurance is against the law.
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Old 08-20-2012, 07:46 PM
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zturncutter zturncutter is offline
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Quote:
Originally Posted by DEPENDABLE LANDSCAPING View Post
I am not an accountant, but i do believe it is illegal to 1099 your employees. To pirposely not pay an employees taxes and comp insurance is against the law.
Posted via Mobile Device
This is what my CPA has always told me, but I have to say my wife worked for a real estate mag for over 20 years in the office handling calls and in the field taking photos using his equipment on his schedule and got a 1099 every year. When the economy crapped out she was laid off, filed for unemployment and was told no go, she was a subcontractor. My CPA has no answer for this.
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Old 08-20-2012, 08:07 PM
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grandview (2006) grandview (2006) is offline
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Quote:
Originally Posted by zturncutter View Post
This is what my CPA has always told me, but I have to say my wife worked for a real estate mag for over 20 years in the office handling calls and in the field taking photos using his equipment on his schedule and got a 1099 every year. When the economy crapped out she was laid off, filed for unemployment and was told no go, she was a subcontractor. My CPA has no answer for this.
Might of been claiming her as a freelancer.
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Old 08-21-2012, 01:46 PM
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fl-landscapes fl-landscapes is offline
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Quote:
Originally Posted by zturncutter View Post
This is what my CPA has always told me, but I have to say my wife worked for a real estate mag for over 20 years in the office handling calls and in the field taking photos using his equipment on his schedule and got a 1099 every year. When the economy crapped out she was laid off, filed for unemployment and was told no go, she was a subcontractor. My CPA has no answer for this.
He was probably breaking the law. Even a true 1099 sub contractor must have workers comp otherwise YOU are responsible for the fine.
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Old 08-21-2012, 04:09 PM
Duekster Duekster is offline
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Originally Posted by fl-landscapes View Post
He was probably breaking the law. Even a true 1099 sub contractor must have workers comp otherwise YOU are responsible for the fine.
In Texas you can get a waiver for WC from a sub contractor.
On commercial jobs a smart commercial owner will not allow that by contract.

My WC Carrier audits me and ask for copies of their coverage or they just increase my rates.
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Old 08-20-2012, 07:13 PM
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bump, this gonna be good.
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  #8  
Old 08-20-2012, 07:48 PM
Duekster Duekster is offline
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There is no such thing as a 1099 employee.
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  #9  
Old 08-20-2012, 07:54 PM
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cgaengineer cgaengineer is offline
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Originally Posted by Duekster View Post
There is no such thing as a 1099 employee.
Just a sub contractor. If he uses your equipment, your trucks and on your schedule he is an employee.
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Old 08-20-2012, 08:01 PM
Duekster Duekster is offline
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Just a sub contractor. If he uses your equipment, your trucks and on your schedule he is an employee.
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Exactly. While it is done often... it is not legal.

The two terms do not combine in the tax code. 1099 / employee does not exist

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