"1099 employees" Legal or Illegal? - LawnSite.com™

LGL · #1 08-20-2012, 06:37 PM

Can it be done legally?

DEPENDABLE LANDSCAPING · #2 08-20-2012, 06:41 PM

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

JB1 · #3 08-20-2012, 07:13 PM

bump, this gonna be good.

zturncutter · #4 08-20-2012, 07:46 PM

Quote:

Originally Posted by DEPENDABLE LANDSCAPING

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.

Duekster · #5 08-20-2012, 07:48 PM

There is no such thing as a 1099 employee.

cgaengineer · #6 08-20-2012, 07:54 PM

Quote:

Originally Posted by Duekster

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.
Posted via Mobile Device

Duekster · #7 08-20-2012, 08:01 PM

Quote:

Originally Posted by cgaengineer

Just a sub contractor. If he uses your equipment, your trucks and on your schedule he is an employee.
Posted via Mobile Device

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

grandview (2006) · #8 08-20-2012, 08:07 PM

Quote:

Originally Posted by zturncutter

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.

tjlco · #9 08-20-2012, 08:28 PM

No no no and more no. Unless they have their own equipment & insurance & trucks ect....and subcontract work from you. Sure you can do it, I know guys that have been for a couple years. I'd hate to see the IRS penalties when they get caught