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payroll yes or no

Discussion in 'Business Operations' started by smarino21, Dec 19, 2006.

  1. smarino21

    smarino21 LawnSite Senior Member
    Messages: 345

    I am an llc i havent talked with my accountant yet but i was wondering is there any way to not pay emplyees with payroll. I got 3 guys working for me is that possible? Still paying them a check but 1099 them not underthe table of nothing .
  2. Husky05

    Husky05 LawnSite Senior Member
    Messages: 307

    There is a fine line between having employees and having them do a 1099. If you are telling them when to start working when to be at work, and they are using your trucks and equipment. You have employees and should really be doing payroll. If they were working on there own pace using there own equipment then you can 1099 them. You better be careful some people are going to say its ok and other are going to disagree. Personally, I was in a very similar situation, I would pay the payroll taxes and book them. Its not worth the problems that could arise. Insurances and workers comp mainly.
  3. Runner

    Runner LawnSite Fanatic
    Messages: 13,497

    Also, and what is becoming so much more common, is more and more people are using these personnel services. For many, they are finding that it is really cost comparative, but without all the headache. I have a friend that is an lco, and he employs 26 employees full time, besides him and his secretary. It works out well for him.
  4. MarcSmith

    MarcSmith LawnSite Fanatic
    Messages: 7,157

    I used Paychex. a payroll service, they wrapped my payroll and workers comp into one. they got a % of the payroll. I had checks at my door every other thursday for friday distribution. They filed all the tax paperwork. it was real easy.
  5. Matt k

    Matt k LawnSite Member
    Messages: 60

    Husky is right on. If you are supplying tools, transportation, and have a start and stop time they are employees. Do they have liability insurance? All subs you pay over $600 per year need to have insurance. You are playing with fire, just hope you don't get audited or have a guy get hurt!
  6. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Messages: 5,407

    That is what I use... no hassle at all. I am also on payroll to get some of the taxes out of the way.
  7. Grass-Masters

    Grass-Masters LawnSite Senior Member
    Messages: 424

    Paychex- They do a good job.
  8. smarino21

    smarino21 LawnSite Senior Member
    Messages: 345

    i have my guys on payroll currently with paychex and i have workers comp and liability and auto. I was tlaking about next year to see if you could save some money someone was telling me about that, who is the best person to talk to CPA?

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