1099, Or Workmans Comp For 04.

Discussion in 'Business Operations' started by workaholic, Dec 26, 2003.

  1. workaholic

    workaholic LawnSite Senior Member
    Posts: 260

    WOULD LIKE TO KNOW IF ANY COMPANY HAS DONE A 1099 OR PAYS WORKMANS COMP FOR EMPLOYEES? WHAT DO YOU THINK IS BETTER?
     
  2. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    Well if they are employees, you should be taking taxes out all year, so the 1099 is irrelevant. They are either employees, or subcontractors, you dont get to choose.
     
  3. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900


    lawnman

    You can choose its just the IRS has the final choice:laugh:

    Mac
     
  4. SodKing

    SodKing LawnSite Bronze Member
    Posts: 1,648

    According to IRs rules your employees cannot be considered subcontractors if you give them a schedule to follow and a vehicle and equipment to use. 1099's are given to vendors, or subcontractors.
     
  5. zmowing

    zmowing LawnSite Member
    from York,PA
    Posts: 85

    Now I know how you mow a lawn for $16.00. You must pay them as employee if they used your equipment.you can lie but then you must have proof of insurance, for all your sub.All the money you made will now go to SAM THE TAX MAN
     
  6. tx_angler

    tx_angler LawnSite Senior Member
    Posts: 278

    The IRS has a 20 question test it uses to determine employee/contractor status. Use any search engine to search for "IRS 20 Questions" and you'll fing plenty of reading.

    Here's a link to one site: http://synergyservicescorp.com/1099Misclassification.doc

    BTW: Choose wisely when classifying contractors/employees, the IRS has absolutely no sense of humor on this issue!
     

Share This Page