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Old 05-14-2004, 01:48 AM
Glen Hughes
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Default Re: Subcontractors: W-9 or 1099-MISC?

"Amy Flemming" <flemmingfarms[at]yahoo.com> wrote:

- quote -

> If a company has people doing work for them at different job
> sites (like a roofing company, for example), using the
> company's tools, being at a job (on the job site) when the
> company says they need to be there, then is that an employee
> or a subcontractor? If they are a subcontractor, then what
> form are they to fill out upon getting paid by the company
> if they are a "1099"?


Based on the limited information they appear to be an
employee

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  #2  
Old 05-12-2004, 02:43 AM
Phil Marti
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Default Re: Subcontractors: W-9 or 1099-MISC?

- quote -

> If a company has people doing work for them at different job
> sites (like a roofing company, for example), using the
> company's tools, being at a job (on the job site) when the
> company says they need to be there, then is that an employee
> or a subcontractor?


They sound like employees to me.

- quote -

> If they are a subcontractor, then what
> form are they to fill out upon getting paid by the company
> if they are a "1099"?


BEFORE paying them the payor needs to get a W-9. The
instructions for the W-9 tell the payor what to do if the
payee refuses to provide a TIN. The TIN is then used on the
1099-MISC that the payor issues to the payee at the end of
the year. See the instructions for the 1099 series.

Phil Marti
Topeka, KS

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  #1  
Old 05-12-2004, 02:43 AM
CLJ1219
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Posts: n/a
Default Re: Subcontractors: W-9 or 1099-MISC?

- quote -

> If a company has people doing work for them at different job
> sites (like a roofing company, for example), using the
> company's tools, being at a job (on the job site) when the
> company says they need to be there, then is that an employee
> or a subcontractor?


Sounds like employee to me.

Carol
What can one expect of a day that begins with getting out of bed.

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Old 05-12-2004, 02:24 AM
Dick Adams
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Posts: n/a
Default Re: Subcontractors: W-9 or 1099-MISC?

- quote -

> If a company has people doing work for them at different
> job sites (like a roofing company, for example), using the
> company's tools, being at a job (on the job site) when the
> company says they need to be there, then is that an employee
> or a subcontractor?


I say "employee", but as almost always "it depends".

Here is the problem:
The IRS would like to make everyone an employee. But,
to avoid massive litigation, there is an exception for
"trade practice." Trade practice means "this is how it
is done in this trade or profession." It does not mean
"this is how we want it to be done."

Unfortunately "trade practice" is an area of abuse.
Employers can avoid FICA, Medicare, unemployment costs,
and workman's compensation costs as well as some
recordkeeping costs by classifying individuals as
subcontractors. The general rule is if you were classified
as a subcontractor and you later argue that you were an
employee, you don't work here no more. <g

There is

In the case of roofing companies, there are substantial
insurance requirements (as in workers fall off of roofs).



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  #-1  
Old 05-09-2004, 10:06 PM
Amy Flemming
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Posts: n/a
Default Subcontractors: W-9 or 1099-MISC?

If a company has people doing work for them at different job
sites (like a roofing company, for example), using the
company's tools, being at a job (on the job site) when the
company says they need to be there, then is that an employee
or a subcontractor? If they are a subcontractor, then what
form are they to fill out upon getting paid by the company
if they are a "1099"?

Thanks . . . and confused,

Amy Flemming

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1099misc, subcontractors
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