Re: 1099 Contracting

Subject: Re: 1099 Contracting
From: Sue Heim <SUE -at- RIS -dot- RISINC -dot- COM>
Date: Wed, 3 May 1995 13:49:54 PST

Doug wrote:

> While I'm not a CPA, I did work on the procedures dealing with detasseling
> crew leaders, who can be engaged on either a 1099 or W-2 basis. Our
> legal beagles expressed *lots* of interest, because of the *company's*
> exposure when using 1099 workers. Although a 1099 worker is responsible
> for paying his or her own taxes, it definitely appears to be the *employer*
> who is responsible for making the correct determination of the worker's
> status.

Speaking from one who is currently wrangling with the IRS, there are
certain limitations on who can be classified as a 1099 employee. If
the employer:

a) provides a place to work
b) requires that you be present during specific hours of the day
c) provides the tools with which you work

then you are not eligible to be an independent contractor and are
considered to legally be an employee. There are a couple of other
requirements, but those are the three key ones.

The moral of the story: Beware if you are working for someone and they want you
to file
1099's. They may be trying to avoid paying additional taxes and you
will end up spending lots of time talking to the IRS!! <ick!>

...sue
---------------------
Sue Heim
Research Information Systems
Email: Sue -at- ris -dot- risinc -dot- com


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