When a cheap craigslist guy becomes a 1099 guy?

Discussion in 'Employment' started by rclawn, Jan 29, 2019.

  1. rclawn

    rclawn LawnSite Senior Member
    Messages: 707

    So recently I have found a guy on craigslist that will haul off my tree limbs. He charges $50 for a 5x12 trailer load and even does the loading himself. So, I will stack the limbs at curb then he comes by and picks them up. He has a full time job, just does this in evenings and uses the municipal dump where they don’t charge him. So he thinks he is making $50 an hour.

    I have only used him 5 times so far (total under $300) so I know at this point I don’t need to 1099 him. However, I am keeping track of amounts paid and imagine I will keep using him past the $600 threshold. I plan to warn him that I will need to give him a 1099 form, but how do you educate a craigslist fellow on this? I don’t want him to think I am screwing him but also ethically need to make sure he understands what it is. He isn’t the brightest so maybe there is some other way?- especially since he has another job. Not looking to break any laws, just need best option.
     
  2. tdoeizreal

    tdoeizreal LawnSite Senior Member
    Male, from Midwest
    Messages: 537

    Can you guess who's going to stop picking up your limbs when you ask him to fill out a w9?
     
    Mdirrigation, zlandman and Mark Stark like this.
  3. BigJlittleC

    BigJlittleC LawnSite Gold Member
    from Chicago
    Messages: 3,839

    See if you can pay him with a credit card or with some third party service like PayPal. You would then be exempt from the filling 1099. Of course run this by you accountant as tax laws change and I'm just a lawn guy.
     
    rclawn and Myers Lawn Care like this.
  4. sjessen

    sjessen LawnSite Fanatic
    Male, from Knoxville, Tn
    Messages: 5,906

    Offer to pay him 20 per cent more when he fills out the w9.
     
    Walker56 likes this.
  5. starry night

    starry night LawnSite Gold Member
    Messages: 3,660

    I have always done all my business transactions strictly by law. BUT, what do you think you would find if you surveyed all the Lawnsite guys as to whether they would just pay him cash with no record.
     
    AlohaMowing likes this.
  6. sjessen

    sjessen LawnSite Fanatic
    Male, from Knoxville, Tn
    Messages: 5,906

    How are they reporting cash expenses?
     
    Walker56 likes this.
  7. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 14,887

    i'd just shove him really hard and take his milk money.
     
  8. starry night

    starry night LawnSite Gold Member
    Messages: 3,660

    Putting aside my snarky answer, I agree with sjessen.
     
    sjessen likes this.
  9. tdoeizreal

    tdoeizreal LawnSite Senior Member
    Male, from Midwest
    Messages: 537

    Is this for your residence, or as a sub for work? In which case, do you think he has the insurance he would need? Are you 1099ing him for your taxes and insurance, or just because he should be paying taxes on it?
     
    Last edited: Jan 29, 2019
  10. eggy

    eggy LawnSite Bronze Member
    Messages: 1,155

    So he is a business providing you a service picking up your limbs...not a employee...and my next question is why don’t you just haul the limbs to the free dump?
     

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