Quote:
Originally Posted by speeder
That's the question I'm really after. Who needs to be 1099'ed? When a plumber comes and does a $900 job at your house, you certainly don't 1099 him.  |
As a general rule of thumb, if YOU'RE going to deduct it as a business expense you need to 1099-MISC as non-employee compensation if its over $600. If you hire a cleaning lady for you're home and she's making more than $600/year and you exert control over her work (who, when, hours, methods, supervise her work, etc) she's actually an employee and you should be giving her a W-2 and withold FICA, etc. However, if you contract with Mighty Maids or a Pest control Service and they control who performs the work they are independent contractors.
They common law control test that determines the status of someone performing service for you is a bit of a moving target.
Give us some examples of what you're dealing with and you'll get some opinions.