1099 or employee?

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bth0mas20

Senior Member
Location
Maryland
I have been working an electrician for 2 years as needed becuase he had a full time job else where so the few hours a week he helped me I paid cash. I have been using him full time latley and need to make him an employee of follow the 1099 path.

Does anyone else 1099 their workers in the electrical business? How does this work?
 
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satcom

Senior Member
bth0mas20 said:
I have been working an electrician for 2 years as needed becuase he had a full time job else where so the few hours a week he helped me I paid cash. I have been using him full time latley and need to make him an employee of follow the 1099 path.

Does anyone else 1099 their workers in the electrical business? How does this work?
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Many states with licensing laws require them to be an employee not a 1099 contractor, in my state them must be under our direct supervision as an employee
If a 1099 contractor is injured on the job who pays and who ends up with all the problems?
 
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petersonra

Senior Member
Location
Northern illinois
Occupation
engineer
bth0mas20 said:
I have been working an electrician for 2 years as needed becuase he had a full time job else where so the few hours a week he helped me I paid cash. I have been using him full time latley and need to make him an employee of follow the 1099 path.

Does anyone else 1099 their workers in the electrical business? How does this work?
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It is possible you could legally do this if he is a legitimate subcontractor and all the T's were crossed and I's dotted. It's not all that easy to make work legally though and there is always the issue of insurance problems. Your liability carrier may not be happy if he is not a legit subcontractor and you may have some WC liability if it is not handled just right and he gets hurt.

It is usually safest to just hire him as a PT employee. And really, it does not save anyone any money unless you are paying under the table to avoid taxes.
 
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bth0mas20

Senior Member
Location
Maryland
petersonra said:
It is possible you could legally do this if he is a legitimate subcontractor and all the T's were crossed and I's dotted. It's not all that easy to make work legally though and there is always the issue of insurance problems. Your liability carrier may not be happy if he is not a legit subcontractor and you may have some WC liability if it is not handled just right and he gets hurt.

It is usually safest to just hire him as a PT employee. And really, it does not save anyone any money unless you are paying under the table to avoid taxes.
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What is the difference between hiring him as a part time versus full time?
 
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mkgrady

Senior Member
Location
Massachusetts
bth0mas20 said:
I have been working an electrician for 2 years as needed becuase he had a full time job else where so the few hours a week he helped me I paid cash. I have been using him full time latley and need to make him an employee of follow the 1099 path.

Does anyone else 1099 their workers in the electrical business? How does this work?
Click to expand...

Paying him as a sub (giving him a 1099) is not legit unless he gets to decide when to do the work, how to do the work and whether or not he wants to do the work. When you pay him as a sub but he is acting like an employee you are exposing yourself to workers comp costs and social security payments. Unlike an employee that is covered by workers comp, if he gets hurt on the job he can sue you. He can also sue your customer.
 
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petersonra

Senior Member
Location
Northern illinois
Occupation
engineer
bth0mas20 said:
What is the difference between hiring him as a part time versus full time?
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PT employees have a tougher time collecting against your unemployment contributions. There are some income tax issues associated with health insurance and retirement plans as well.

It is best to avoid hiring someone on a FT basis unless you really need them to be FT.

OTOH, there is no reason someone who is a PT employee can't work 60 hours a week now and then.
 
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