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Old 02-22-2005, 02:48 PM
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Clapper&Company Clapper&Company is offline
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10-99

Dose any of you guys, 10-99 your employees? It would save you money in the long run. I just wanted to know how many guys do this. What are the pros & Cons?
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Old 02-22-2005, 03:21 PM
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your right it will save you a lot of money , TILL they do an audit and bye bye money/
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Old 02-22-2005, 04:00 PM
dsaldivar dsaldivar is offline
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Yeah, I've heard the law is real clear on this. I'm sure others of tried to get around the law, including me.

I plan on talking with a lawyer on this aspect of using contracted labor. I know one of the tests requirements in determining between employee or contractor status is "using their own tools". But I was going to approach a lawyer about the possiblility of setting up a tool lease agreement to satisfy this requirement.

In other words, in the agreement I would state a price for leasing various pieces of equipment and tools. This of course would be added to the laborer's rate of pay so that in essence he is not paying anything and I'm not collecting anything.

Oooh I know this is going to open a can of worms.

Just thinking outside the box.

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Old 02-22-2005, 04:24 PM
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Mueller Landscape Inc Mueller Landscape Inc is offline
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Illegal to 1099 and employee for the work that employee is employed to do.
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Old 02-22-2005, 09:14 PM
dforbes dforbes is offline
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Quote:
Originally Posted by dsaldivar
Yeah, I've heard the law is real clear on this. I'm sure others of tried to get around the law, including me.

I plan on talking with a lawyer on this aspect of using contracted labor. I know one of the tests requirements in determining between employee or contractor status is "using their own tools". But I was going to approach a lawyer about the possiblility of setting up a tool lease agreement to satisfy this requirement.

In other words, in the agreement I would state a price for leasing various pieces of equipment and tools. This of course would be added to the laborer's rate of pay so that in essence he is not paying anything and I'm not collecting anything.

Oooh I know this is going to open a can of worms.

Just thinking outside the box.

Danny
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This is just one requirment. you would not be able to set the start time, finish time, how many hours a week they work, who they mow on what day, how they dress, and on and on. Are you going to have 1 truck, 1trailer, mower and other equipment for each man because it will be hard to explain 2 contract laborers working in the same truck. Also you would have to show the money they pay you to lease as income. If they are leasing your equiptment I doubt that you insurance company is going to cover them, they will want them to have their own policys. If I put some thought into it I'm sure I could think of other things. I don't mean to sound negative but it seems like a paperwork nightmare. I would think it would be easier to pay the taxes with no worries about it coming back to haunt you
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Old 02-22-2005, 09:37 PM
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I use "contract labor" for my sod jobs, since they bring their own tools...and set their own hours. If they don't show up when I need them, I don't use them again. The one big problem with contract labor is the whole insurance issue.
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Old 02-22-2005, 09:55 PM
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If you look at the IRS web site you can find the rules for subcontract labor. It is very clear. The only thing you can furnish them is the work, and the standards that it has to meet. You cannot "legally" furnish them a pencil to fill out there paper work.
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Old 02-22-2005, 04:52 PM
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Carolina Cutter Carolina Cutter is offline
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1099 is for NON-EMPLOYEE COMPENSATION!!!!!! You cannot do this for an employee of yours only a subcontractor.
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Old 02-22-2005, 06:46 PM
dsaldivar dsaldivar is offline
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Ok let me clarify..

I'm aware that a 1099 is for a Non-employee. The idea is get people to become 1099 workers not employees. Many in this industry try to do just this for purposes of not being responsible to pay employer taxes. But there are criteria and requirements in the law statute that must be met in order to determine whether a person can be deemed with a status of a 1099 contractor. One of those requirements that's hard to meet with most LCOs is the requirement for the 1099 to have their own tools. This is the requirement I was addressing in my earlier comments.
Make sense?
Thanks,
Danny
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Old 02-22-2005, 07:07 PM
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SodKing SodKing is offline
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Quote:
Originally Posted by dsaldivar
Ok let me clarify..

I'm aware that a 1099 is for a Non-employee. The idea is get people to become 1099 workers not employees. Many in this industry try to do just this for purposes of not being responsible to pay employer taxes. But there are criteria and requirements in the law statute that must be met in order to determine whether a person can be deemed with a status of a 1099 contractor. One of those requirements that's hard to meet with most LCOs is the requirement for the 1099 to have their own tools. This is the requirement I was addressing in my earlier comments.
Make sense?
Thanks,
Danny

Lets see these 8$ per hour people you want to hire should bring their own tools??? like the lawnmower, rakes, shovels???

This horse has been beaten dead. Do a search and find the 15,000 reasons why you can't do this.
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