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Payroll Taxes and withholdings????

Discussion in 'Employment' started by mark140389, Sep 10, 2009.

  1. mark140389

    mark140389 LawnSite Member
    Messages: 2

    In our industy what is legal as far as payroll is concerned?? Can we 1099 crew members or do we have to withhold taxes and provide W2's??:
  2. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Messages: 3,465

    Pay the taxes. Get yoursef a payroll company for a small fee and you can sleep better.
  3. old oak lawn

    old oak lawn LawnSite Senior Member
    Messages: 703

    1099 Crew members= No Withhold taxes and provide W2's= yes. You should be withholding tax from day one. -Fed tax- state tax- medicare and FICA. Medicare and FICA you have to match your employees payment. Our industry in no different then any other, this is a business and tax is a part of any business. You need to find a accountant to help you through this because the IRS does not play around, they want their $$ and NOW.:waving:
  4. White Gardens

    White Gardens LawnSite Fanatic
    Messages: 6,776

    I've always heard that you can only 1099 sub-contractors or employees that are part time.

    If you 1099 them, they must carry their own liability insurance as a sub, as you are not covering them.

    I was handed a 1099 one year after working for an LCO. Needless to say, after doing the research, the IRS could of had a field day with them.
  5. old oak lawn

    old oak lawn LawnSite Senior Member
    Messages: 703

    Part time and full time are the same, they are both your employees and you have to withhold tax. I would not play any 1099 games with the IRS. You cant clam a - subcontractor just because you want to, there are rules.:waving:
  6. White Gardens

    White Gardens LawnSite Fanatic
    Messages: 6,776

    I see, I thought you were saying to give them a 1099.
  7. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Messages: 4,891

    1099 is for a business

    W-2 is for an employee

    There is no grey area. it is what it is.
  8. Surecut Lawncare LLC

    Surecut Lawncare LLC LawnSite Member
    from SE,MI
    Messages: 28

    Not entirely true. You can work for a business and still get a 1099.

    ADVANCEDOHIO LawnSite Member
    Messages: 92

    1099's are given to a person or business that you have "do work" for you. Not people that " work for you". You would have to provide an invoice copy from that person or business if you get audited. Any person or business that you pay over $600 is required to get a 1099. It was put to me like this at a business seminar - If it looks like an employee, walks like an employee, smells like an employee.... Its an employee!!! There was no "gray area" according to them.

    I hope this helps and maybe dif states have dif rules within the state itself, but I think the IRS sees it just like this. I hope this helps... GOOD LUCK.
  10. kemco

    kemco LawnSite Bronze Member
    Messages: 1,116

    Well put. There are very certain "rules" that spell out whether or not a person is a 1099 contractor. I remember a few requirements for 1099 "employees" include the "employee" doing all their own advertising and securing their own jobs/contracts, and essentially paying all of their own expenses of doing business. Highly unlikely that the workers refered to in the OP do this. Therefore they are not 1099. The burden of proof would be on the business owner, not the employee, to prove to the IRS that they did the above in order to qualify for 1099 status.

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