John Kizewski
New member
Does anyone have a link to the pdf that was enclosed with license renewals this year? Heard about if from a coworker but wife threw it away. Would like to view the letter myself.
DLEG letter regarding 1099 employees
- Thread starter John Kizewski
- Start date
- Status
- Location
- Lockport, IL
- Occupation
- Semi-Retired Electrical Engineer
To save the membership a few moments of time, the person posting this thread is from Michigan.
John: we are not all going to understand the question, since we do not all share the same licensing department. Welcome to the forum.
John: we are not all going to understand the question, since we do not all share the same licensing department. Welcome to the forum.
K8MHZ
Senior Member
- Occupation
- Electrician
No, that's not it.
I am in Michigan and I know what letter he is talking about. I got one as well.
I didn't know there was a pdf for it, but in a nutshell it states that electricians can't be paid 1099 wages due to the licensing structure. They must be in the employ of, and be paid by, a licensed electrical contractor for any electrical work done here.
Mgraw
Senior Member
- Location
- Opelousas, Louisiana
- Occupation
- Electrician
Sierrasparky
Senior Member
- Location
- USA
- Occupation
- Electrician ,contractor
I would think that goes for any type of trade or activity where a license is required to act as a sole proprieter.
K8MHZ
Senior Member
- Occupation
- Electrician
I think that's it. The 1099 thing is on the 2nd page.
The title of this thread is the point they are making. You can NOT be an employee and receive a 1099. Employers are trying to treat employees like subcontractors to avoid some taxes and workers compensation. According to my lawyer it's illegal, and if a "subcontractor" is injured at work without workers comp the employer better be able to prove that he is subcontractor and not an employee.
kwired
Electron manager
- Location
- NE Nebraska
It has always been my understanding that if you hire subcontractors you need to have them provide you proof of their insurance otherwise you may need to include them under your insurance if they don't have any which essentially makes them an employee and not a subcontractor.
ceb58
Senior Member
- Location
- Raeford, NC
This is true. The IRS has a definition for a "bonafide" employee. It states that if you direct the work to be preformed, time to show up for work and how the work is preformed then that person is an employee and cannot be 1099'ed.
Not necessarily an employee. One of the contractors I do work for explained it like this. When he is audited for his workers comp. he has to produce all payments to sub contractors along with their WC info. So if he pays out $100,000.00 to subs and only has WC info for $80,000.00 worth of sub work then he must pay X# of $ per $100.00. So he would be on the hook for X # of $ for the $20,000.00. On top of what he has to pay for his true employees.
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