 Independent contractors (by Angie [NJ]) Jul 29, 2012 4:36 AM
 Independent contractors (by Steve [MA]) Jul 29, 2012 4:58 AM
Independent contractors (by frank [NY]) Jul 29, 2012 5:13 AM
Independent contractors (by Robert J [CA]) Jul 29, 2012 7:13 AM
Independent contractors (by AllyM [NJ]) Jul 29, 2012 12:36 PM
Independent contractors (by Ellie [IL]) Jul 29, 2012 2:56 PM
Independent contractors (by BRAD 20,000 [IN]) Jul 29, 2012 11:05 PM
Independent contractors (by Angie [NJ]) Posted on: Jul 29, 2012 4:36 AM
Message:
State Specific Question About: NEW JERSEY (NJ)
Does anybody. Know how a
Full time handy person would. Be able to fall under
The independent contractor Laws
I have a full time handy man
And I want to 1099 him
Can I do that ?
--198.228.xxx.xxx |
Independent contractors (by Steve [MA]) Posted on: Jul 29, 2012 4:58 AM
Message:
Sure you can 1099 him if you want. However I doubt that your state & I know the IRS would classify him as an independent contractor.
I presume you are trying to avoid either paying your share of the employer's taxes or providing workmens compensation. IMO to protect yourself, you should either make him a legitimate employee or use some type of employee leasing firm to cover him. --72.85.xxx.xxx |
Independent contractors (by frank [NY]) Posted on: Jul 29, 2012 5:13 AM
Message:
If you don't want to pay comp or payroll taxes, don't issue an 1099 at all.
How much will you save on your income tax if you 1099 him? It may not be enough to cover the comp and payroll taxes but if it is close then it may be worth it to go full employee so that you and him are both protected.
However, now he will have to declare it on his taxes. His effective hourly rate will go down now. --72.80.xx.xxx |
Independent contractors (by Robert J [CA]) Posted on: Jul 29, 2012 7:13 AM
Message:
The Federal Laws have changed back and forth on this issue. Landlord were warned one way, then the law switched back -- some what. To protect yourself, you should 1099 everyone, sort of an over kill.
Since I am a licensed contractor, bonded, insured -- many of my clints want to 1099 me so they won't be liable if I don't pay taxes.
The requirement is when you pay someone more than $600 per year and they aren't a professional corporation, you then must file a 1099. --173.55.xx.xxx |
Independent contractors (by AllyM [NJ]) Posted on: Jul 29, 2012 12:36 PM
Message:
I used a handyman that had set up his own business and paid his own insurance and employment taxes. He charged up to $80 per hour depending on the job but I could call him or not and not have to find work to keep him busy. Unfortunately, in the afternoons he had too many beers for lunch and was not effective. Then a friend of mine lost his job and he did a lot of work for me. But he made did so many things in a stupid way, that I had to let him know that there was no more work. Now I am looking and found a guy in the parking lot at Home Depot. He gave me his card and I got in touch with him but he has not responded. Angies' List says he's OK but anyone can post to that so it's not really a great reference. --69.141.xxx.xxx |
Independent contractors (by Ellie [IL]) Posted on: Jul 29, 2012 2:56 PM
Message:
Neighbor tried that. IRS fined him hundreds of thousands of dollars. My handyman is an employee. --69.171.xxx.xxx |
Independent contractors (by BRAD 20,000 [IN]) Posted on: Jul 29, 2012 11:05 PM
Message:
Angie, Perhaps you double posted by accident. You got some great answers the first time this post hit. Be sure to check there.
NEVER pay under the table in cash!
ALWAYS provide the appropriate statement of earnings to the IRS.
The IRS criteria is your answer. Use THAT to examine your options.
We contract with multiple contractors and give them individual orders for work to be performed. We pay them when that work for that house is complete. --50.129.xxx.xxx |
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