Re: in - house contractor
Member #: 1435
Registered: 1996-2001
Posted:
240
Name:
jerry edgar
Name:
Jerry Edgar
Company:
Maine-Line Inc
Occupation:
Owner
Location:
midwest
now trey, i have to disagree with you, i don't believe they can do both as zss stated, however, if you are what you guys are calling " employee contractors ", they can 1099 you for vehicle and/or equipment usage but they have to legally W2 you for your services rendered. Actually, i guess you could drop your contractor status for part of the year and work as an employee, but an employee can not drop his in-house status and become a contractor without meeting all the necessary requirements, ie. all your insurances and being registered with the federal government with either your social security # or your federal id # to show that you are a sole-proprietor of LCC or partnership or corp of some kind... Been through this a number of times. Think about it, i would much rather pay all my in house guys a higher rate and 1099 them, i profit more money that way, that is until audit time rolls around, noe since they are not true subs i get hit paying any and all taxes they neglected to pay, including un-employment taxes and not to mention insurance on their wages because they are truely classified as in-house under the federal laws, ask any corp / contract lawyer, they will all tell you the same thing.
There are 2 replies to this message
