1099 Fun Fact











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11 Responses to “1099 Fun Fact”

  1. Jing says:

    We signed a contract with a labor company and they provide labor for our maintenance depth. We pay the labor company hourly rate weekly and overtime wages. And it is stipulated that the labor company is in charge of their benefits and insurance and we can not hire these people.Are these employees 1099 and do we need to verify whether we need to verify whether they are eligible to work?

    • 10 til 2 says:

      Jing: It probably all boils down to the contract that you have with the labor company; but our guess is that these people are employees of the labor company doing contract work at your business. If this is the case (and we can’t say with certainty that it is, as we are not employment attorneys… but the fact that you pay the company and not the individuals says a lot) you likely have no responsibility to verify their status. The entire onus of managing and paying employment tax and expenses is likely on the labor company; a cost that they certainly pass on to you in the hourly rate you pay. Again, we are not attorneys, so we suggest you speak to one or contact the Department of Labor in your state for expertise on the topic. Good luck.

  2. Ralph says:

    I have been a 1099 EE after I quit my job and was hired back as a 1099 EE. Last contract has a clause that basically says if it can be proved I am not a 1009 EE, I have no recourse. It also states that this applies to my previous contractual agreement. Is that really legal?

  3. Lora H says:

    I am a licensed real estate broker but do assistant work for a commercial agent. He guarantees me a fixed amount per year working for him, gives me a 1099 but wants to dictate the hours I work. I work from home. He randomly calls all day long to ask if I am in front of a computer to handle something for him. If he is out showing property he demands I be in front of a computer in case he has a questions about a property.
    Is this truly 1099 or should it be W-2. I pay almost all of my expenses and all of my taxes. He pays my desk fees with the company.

  4. doug huet says:

    I work as a tow truck driver they have me on a 1099, im not sure why I drive a company truck use a company gas card use company computer. Im just not sure how a 1099 works.

    • 10 til 2 Central says:

      Doug: As a 1099 contractor, you are responsible for your entire income tax burden, while employees have a large chunk of that expense (including FICA, workers comp, etc.) paid for by their employer. Contractors are also generally not covered by workers comp, which can be an issue in job such as tow truck driving, which likely carries some substantial inherent risks. You might want to check out this page on the IRS website or perhaps contact the Department of Labor in your state for further clarification. Best of luck to you and keep us posted.

  5. Ashley says:

    I’ve been working for a billing company since June 29, 2015 and it was not until January of the new year that we got switched to w2 because the boss’ said legally they didn’t have to because they had less than 10 employees. However we work in their office, use their computers, have a company email and also have a dress code. Am I being misclassified? I started wondering because I am moving on from the company but they are not trying to give me my sick time so I need to calculate it myself. My search on rules and reg have led me here. Thanks

    • 10 til 2 Central says:

      Ashley: The fact that the company even offered you sick time at any point in your tenure is a strong sign that you were not a contractor. Many businesses seem to think that employee classification is an arbitrary decision determined solely by what is most convenient to them and their wallets. This is simply not the case. We speculate (with great big red flares) that you would be considered an employee in the eyes of Uncle Sam. We are not employment attorneys; for expert advice we suggest you speak with one or contact the Department of Labor in your state. Good luck on your new job!

  6. Donald says:

    i work as a 1099 but i drive a company truck that they pay the gas and insurance and am told what time i have to work and when i can take lunch and am told how to do my job should i be w2 or am i suppose to be 1099?

  7. Brandon S says:

    Hello, I am a tiny e-commerse business and have not hired anyone, or paid wages to anyone (not even myself) (this business is just an attempt to earn a few dollars selling coins, and learn some about entrupurnership) do I still need to file a 1099 of any form (1099, 1099 misc, 1099 k) any advice will be greatly appreciated. Thank you!

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