Employees as Independant Contractors

Discussion in 'Business Operations' started by ZEKE, Feb 29, 2004.

  1. ZEKE

    ZEKE LawnSite Member
    Posts: 23

    Anybody have any input on your employees being independant contractors. My wife used to work for a house cleaning business and the owner of the business had all the employees become independant contractors so they would have to take care of all the taxes on their own. The owner of the company wouldn't have to worry about it. Is this something that would work in our business? :confused: Z
     
  2. leadarrows

    leadarrows LawnSite Senior Member
    from N/A
    Posts: 925

    A lot of info has been posted on this recently. If you do a search on this and don't find what you want to know we will be glad to help. Start with this thread. http://www.lawnsite.com/showthread.php?s=&threadid=62833
    I could repost it for you and I wouldn't mind but it would save time and server space for you to look at whats already been posted.
     
  3. ZEKE

    ZEKE LawnSite Member
    Posts: 23

    Did a quick search. Thanks for the link. Looks like a huge can of WORMS!! Z
     
  4. ipm

    ipm LawnSite Senior Member
    Posts: 264

    All you need to do is give them a 1099. We have never had a problem. They have to carry their own insurance, etc. I believe
     
  5. Hawkeye5

    Hawkeye5 LawnSite Senior Member
    Posts: 295

    I hate to rain on your parade, ipm, but if they are employees, there is no way to make them into independent contractors. I don't care how many 1099s you give out. You mess with both the IR$ and your $tate dept. of labor, not to mention your insurance carrier if you carry workers compensation. The dollar signs are intentional because such a foolish move can cost you big money! If you control the "manner, method and means" by which an individual does their work then they are an employee, no matter what you try to call them. Check with your CPA, he will set you straight
     
  6. ipm

    ipm LawnSite Senior Member
    Posts: 264

    Who said anything about them being employees?? We have employees that are sent their w2s and then we have independent contractors that are sent 1099. The 1099 contractors will have to provide their own ins., etc.

    If you have an employee that receives a w2 you cannot also send him a 1099.. I am a little bit confused here...... please comment.

    It's kinda like being pregnant, either you are or you aren't....
     
  7. Hawkeye5

    Hawkeye5 LawnSite Senior Member
    Posts: 295

    From your original comment I understood you felt all that was necessary was to issue 1099s to everyone and the suggestion was that everyone was an independent contractor. That was the initial question. If such is not the case and you issue 1099s only to true independent contractors and W2s to employees then you have no problems.
     
  8. ipm

    ipm LawnSite Senior Member
    Posts: 264

    I think the cog in his question is "become" You are miscontruing the question as using employees as I.C.s I think he is asking if you can make an employee an I.C. The I.C. would have to provide his own equipment, ins., etc.

    I obviously am not understanding the question here......... please clarfiy...
     
  9. ipm

    ipm LawnSite Senior Member
    Posts: 264

    10/4.................:D
     
  10. Hawkeye5

    Hawkeye5 LawnSite Senior Member
    Posts: 295

    I didn't communicate well. Seems we are on the same page.
     

Share This Page