employee pay

tint_audiopros · February 20, 2009

just wanted to talk to my fellow business owners about payroll & tax paying vs. 1099. I've been doing 1099's for the last 4 years on my employess. Recently I looked into putting my main installer on payroll due to the amount of tax she owed for 08. :beer I don't see any advantage for myself doing this. What are your thoughts and why the helll do I have to match ss & medi ? I'm blown away.

TTS · February 20, 2009

It's really pretty simple.... if they are employee's then it is !llegal for you to just 1099 them.

tint_audiopros · February 20, 2009

It's really pretty simple.... if they are employee's then it is !llegal for you to just 1099 them.

Their whatever I want to call them, saying their one thing & filing a different is totally fine in my book. I'll call my subs employees if their here everyday & thats how I choose to refer to them.

TTS · February 21, 2009

:beer

I would suggest IRS.gov

There you will find answers to all your questions. If that is the way you have been operating.. you should say an extra prayer tonight that you or your employees don't get audited.

Texastintchick · February 21, 2009

It's really pretty simple.... if they are employee's then it is !llegal for you to just 1099 them.

Their whatever I want to call them, saying their one thing & filing a different is totally fine in my book. I'll call my subs employees if their here everyday & thats how I choose to refer to them.

That is not true. I am a CPP and can tell you if one of your employees ever got smart you would be on a world of hurt!

The IRS states if you have an employee you must not only withhold taxes but pay your portion of payroll taxes. You are cheating the IRS, FUTA, and SUI. You are breaking the law and this can not only shut you down but put in you jepordy of losing your home and having all of your accounts frozen by the IRS.

Do the people have to be at work at a certain time? If so they are employees. Do they get a 1hr lunch break? If so they are employees. Do you negotiate every job as far as pay or do they get an hourly wage or salary? If they get an hourly wage or salary, then they are employees.

The list goes on and on, but you have been warned you are playing with fire!

TTS · February 21, 2009

Thank You! :bingo

Texastintchick · February 21, 2009

4 yrs my friend. 4 yrs.... wow that is a lot of cash. :bingo

tint_audiopros · February 21, 2009

It's really pretty simple.... if they are employee's then it is !llegal for you to just 1099 them.

Their whatever I want to call them, saying their one thing & filing a different is totally fine in my book. I'll call my subs employees if their here everyday & thats how I choose to refer to them.

That is not true. I am a CPP and can tell you if one of employees ever got smart you would be on a world of hurt!

The IRS states if you have an employee you must not only withhold taxes but pay your portion of payroll taxes. You are cheating the IRS, FUTA, and SUI. You are breaking the law and this can not only shut you down but put in you jepordy of losing your home and having all of your accounts frozen by the IRS.

Do the people have to be at work at a certain time? If so they are employees. Do they get a 1hr lunch break? If so they are employees. Do you negotiate every job as far as pay or do they get an hourly wage or salary? If they get an hourly wage or salary, then they are employees.

The list goes on and on, but you have been warned you are playing with fire!

Their here as needed (sub-contract.) & yes pay is negotiable. I have one in particular who shows up every morning but can also leave whenever, It's totally legal & legit, they pay their taxes I pay mine. I'm saving on having to pay ss & medi. The reason I started this thread was to seek benefits as an employer on putting someone on payroll vs. 1099. My accountant is a 50 year old vet. I'm sure he knows what he's doing & wouldn't file anything to throw up a red flag. :gasp

tint_audiopros · February 21, 2009

it's totally legal to use sub contractors in a business on a daily basis if it wasn't it wouldn't be an option. Also, if you need them to be at the job at a certain time everyday there is work and pay them whatever you choose even if its a set amount thats legal too.