Temporary Employee Questions

Discussion in 'Starting a Lawn Care Business' started by HDLLandscaping, Apr 17, 2013.

  1. HDLLandscaping

    HDLLandscaping LawnSite Member
    Posts: 138

    I have a job that I would like to be able to bring in a friend to help, and since he may be used for other jobs throughout the year how can I make him a "temp" type employee. Will I be able to give him a 1099 Form that i have heard of? and how does that work. Thanks in advance.
     
  2. Smallaxe

    Smallaxe LawnSite Fanatic
    Posts: 10,081

    I bring on various people ONLY when they are able to help,,, and generally we have to schedule around their available times,,, as they are doing other things...
    This would be Sub-Contracting and giving them a 1099-MISC when they recieve more than $800/year from you is your responsibility and their tax burden is their responsibility, including SS tax...

    When they work exclusively for you then the IRS may be pushing the idea that they are Employees and will require w/holding and W-2s... If in question read the relevant IRS pubs...
     
  3. Crimson Lawn

    Crimson Lawn LawnSite Senior Member
    Posts: 319

    Agree with Smallaxe. Also, as a 1099 sub, they must have their own tools. I know, its hard to prove whichever way but a lot of other companies here have got audited the last few years running 1099 employees(subs).
     
  4. HDLLandscaping

    HDLLandscaping LawnSite Member
    Posts: 138

    He would be driving his own vehicle to and from sites as well as bringing any tools that are not already on site if me or my partner is there working. Also has own trailer/mower that may be used. I believe here it is $600 a year for some reason, but if he dosnt make $600 I don't have to worry? Or is it better to issue the 1099 just in case. Thanks for the help
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  5. Smallaxe

    Smallaxe LawnSite Fanatic
    Posts: 10,081

    What does your friend do for a living???
    He would be considered a sole proprietor same as you and your partner, if he is working for himself along with you,,, RATHER than for you...

    You are required to send out 1099-MISC for any moneys over $600 and no requirement for $599 or less... extra paperwork for the IRS is NOT a good thing... :)
     
  6. HDLLandscaping

    HDLLandscaping LawnSite Member
    Posts: 138

    He's in high school but has all te equipment to mow his house and his beach house so they just trailer the mower since its a ztr. I was hoping to be able to use him to get mulch to and from jobs with his trailer or to help with some labor if needed. Since he has all the equipment would he be able to be 1099? He is not a DBA or LLC or anything
    Posted via Mobile Device
     
  7. Crimson Lawn

    Crimson Lawn LawnSite Senior Member
    Posts: 319

    HD, you can 1099 him regardless if he is a Sole Prop, DBA or LLC. Anything over $600, 1099 him, if you use him to haul anything or just labor and his own tools. Let him carry the tax burden instead of you paying tax on the income off the jobs you sub to him or use him on.
     
  8. HDLLandscaping

    HDLLandscaping LawnSite Member
    Posts: 138

    Ok. Thanks for the help guys.
    Posted via Mobile Device
     
  9. grandview (2006)

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

    Look in this empty hand,not the one with cash in it.
     
  10. Smallaxe

    Smallaxe LawnSite Fanatic
    Posts: 10,081

    I can't see how there would be any problem with paying him the full amount agreed upon and him paying his own taxes... he will file a Schedule C on his own tax return and pay the taxes for everything once he reach $400 and you will send the IRS a copy of all 1009-MISC for everyone you sub out too...
     

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