Quote:
Originally Posted by stomachmonkey
You have to be careful there.
Make sure your 1099 employee really is one as far as the IRS is concerned.
They frown upon this tactic and will pick it up on a payroll audit.
Do you supply all the tools / resources needed for them to perform their function.
Do you / did you train them for their role.
Do they set their own hours.
Do they invoice you or are they paid from payroll.
Do they work for other companies.
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Absolutely. The IRS ultimately determines if an employee is actually 1099 and if they say no, you are on the hook big-time. It isn't just a matter of you declaring they are independent contractors. From some articles I have read recently, there is a lot of this going on and the IRS is aware of it.