Home: Message List - When Hiring a 1099?

Re: When Hiring a 1099?

HumanArrow — Wed, 23 Jul 2008 13:01:29 GMT

Thank you Luckiest

Re: When Hiring a 1099?

HumanArrow — Wed, 23 Jul 2008 13:01:00 GMT

Thank you Lighthouse 24

Re: When Hiring a 1099?

HumanArrow — Wed, 23 Jul 2008 12:59:54 GMT

Thank you Bean Counter.

Re: When Hiring a 1099?

Bean Counter — Tue, 22 Jul 2008 21:12:10 GMT

Thanks!

Re: When Hiring a 1099?

LUCKIEST — Tue, 22 Jul 2008 21:01:03 GMT

When Hiring a 1099?? Welcome Wendy,

We need all the bean Counters we can get. Great background and a good answer.

Best of luck, LUCKIEST

Re: When Hiring a 1099?

Lighthouse24 — Tue, 22 Jul 2008 20:38:39 GMT

I was in a hurry and used the term "employee" loosely. BeanCounter provides a much better and more thorough answer. Welcome to the community, BC -- and thanks for the great contribution!

Re: When Hiring a 1099?

Bean Counter — Tue, 22 Jul 2008 19:39:41 GMT

First lets get the terminology correct. When you issue someone a 1099, that person is an independent contractor. Definitely not to be confused with an employee. An employee has social security and medicare withheld from their checks. Hopefully you have taken into consideration the duties of the contractors and they really are contractors. If not, you can email me back.

In regrds to you questions regarding taking online application. Go ahead and take the application online. Choose the people you are interested in and proceed through the hiring process of this contract position. Once you have decided to hire someone, then you request they complete a W-9. The W-9 requests their name, address, social or EIN number. This is standard practice to request. you can also request this information during the background checks if you plan on doing that as well. When I was the tax director, my rule is that I cannot issue that first check out until I have a signed W-9 on file. That will motivate them to get the W-9 back to you in a timely manner.

Being 1099 employees means they are independent contractors that have their own business. In my tax practice I always recommend that they apply for an EIN number and use it in lieu of their social security number to prevent identity theft. So would encourage them to apply for a EIN number at www.irs.gov . You can also find a free copy of the W-9 there as well.

Make sure you take care of this as the IRS is forgiving later if you get auditited.

you are welcome to call me (817) 481-3784. I am the owner of a tax practice and lecture across the country on tax issues. Would be glad to assist if you need help. My email is dawezell@verizon.net. website is www.wendyezellcpa.com .

It is always good to have a professional that can answer questions.

Thanks and happy hunting!

Re: When Hiring a 1099?

LUCKIEST — Tue, 22 Jul 2008 19:01:36 GMT

When Hiring a 1099??

Yes I replied to one of your prior posts. We love Chicago.

The I R S and most States do not like the word "1099". You can NOT have employees who are 1099.
Look up the definition of an employee. It is some one who works for you or your company.
A 1099 is a freelance person who is self employed. Big Difference.

Many times the IRS or the State Wage and Hour Board will come along during an Audit
and disallow all expenses relating to 1099's. Plus you and your company will be heavily fined
for not deducting Social Security and other withholding.

Talk to an Accountant, Be Careful, LUCKIEST

Re: When Hiring a 1099?

Lighthouse24 — Tue, 22 Jul 2008 18:03:10 GMT

I'd provide a .pdf form field version of the W-9 (you can download it) for the applicant to complete and submit. But why would you need this from an +applicant+? Why not wait until you offer a person the job, then have the person complete and sign the W-9 (along with anything else you need). I think almost everyone would understand the requirement to provide a valid SSN to their employer -- but you're not their employer until you actually hire them. Does that make sense?

When Hiring a 1099?

HumanArrow — Tue, 22 Jul 2008 15:58:36 GMT

Hello,

I am with Human Arrow. Human Arrows offers an alternative form of advertising that draws attention to your business. We provide a unique proactive process through which a client can promote their business by directing customers to where that product or service can be found. Human Arrow proactively delivers its clients' promotional messages in a manner that results in immediate customer action.

Our company will serve Chicago and Milwaukee. Our employees will be 1099's and our applications for employment will only be done online. A lot of potential candidates are not comfortable giving their social security number and I understand.

What can I do to ease this while not breaking any laws?
Do I need their social if they are going to be 1099's?

Human Arrow
Directing Traffic To Your Business!

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