"1099 employees" Legal or Illegal?

Discussion in 'Florida Lawn Care Forum' started by LGL, Aug 20, 2012.

  1. LGL

    LGL LawnSite Member
    Posts: 90

    Can it be done legally?

    Posts: 1,343

    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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  3. bump, this gonna be good.
  4. zturncutter

    zturncutter LawnSite Bronze Member
    Posts: 1,308

    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.
  5. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    There is no such thing as a 1099 employee.
  6. cgaengineer

    cgaengineer LawnSite Fanatic
    Posts: 15,782

    Just a sub contractor. If he uses your equipment, your trucks and on your schedule he is an employee.
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  7. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    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

  8. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    Might of been claiming her as a freelancer.
  9. tjlco

    tjlco LawnSite Senior Member
    Posts: 283

    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
  10. cgaengineer

    cgaengineer LawnSite Fanatic
    Posts: 15,782

    You could possibly lease your equipment to them...
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