Subcontractor Contracts

Discussion in 'Business Operations' started by mowinmoney, Jan 13, 2004.

  1. mowinmoney

    mowinmoney LawnSite Member
    from Midwest
    Posts: 70

    I have read a few threads discussing the use of sub-contractors for extra labor or such. Would appreciate any knowledge that can be passed on regarding this area ie. contracts, tax payments, etc.

    Thanks for all responses
  2. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

  3. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116


    I too am trying to figure out exactly what I'll be doing for help this spring. Everyone says that if the employee is following your orders and using your equipment, he's an employee, not a contractor. And as an employee, you have to with-hold income tax, ss tax, medicare tax, match ss tax, match med tax, pay unemployment tax, etc.

    The only problem is, there are tons of people paying their employees as contractors and just sending them a 1099 at the end of the year. I'd guess at least half of all LCO employees in the country are paid this way...just a wild azz guess on my part. I personally know several contractors, in the LCO business and outside of our industry, who pay their employees as contractors and use 1099's.

    I have never head any horror stories about small business people who have paid their employees as contractors. Not one.

    My guess is that the government really doesn't care how we do it.

    DFW Area Landscaper

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