Question for those of you with employees

[Detailed Josh]

Do you guys who have employees pay hourly and actually have them as an employee of your business or do you pay them per job performed and basically as a contractor where they report the income on their taxes (forgot the formal name)?

 

[allenk4]

Make sure you and the person(s) doing the work understand the differences and tax/legal implications

Employee Vs. Contractor: A Tax Distinction | Bankrate.com

 

[Rmd]

The determination of independent contractor vs. employee is ultimately made by the IRS, not you. There are significant responsibilities on your end when filing taxes for independent contractors and for employees and those requirements differ. When in doubt, the Service tends to fall on the side of characterizing "helpers" as employees. Here is the criteria that the Service uses.

Independent Contractor (Self-Employed) or Employee?

 

[Tanner Krabill]

If it's irregular - 1099 them.

 

[Detailed Josh]

I know we're sorting going into more of questions meant for a CPA/IRS expert, but could you make them "employees" and pay them per job (commission?) instead of hourly or how does that work would you still have to have a consistent pay/hours to have an actual employee?

 

[HD.Detailing]

I know we're sorting going into more of questions meant for a CPA/IRS expert, but could you make them "employees" and pay them per job (commission?) instead of hourly or how does that work would you still have to have a consistent pay/hours to have an actual employee?

Employees can be commission only.

Cheaper and better for you to have contractors, not employees.


Sent from my Alien ship

 

[ShaunD]

You need to be carefully trying to use employees as independent contractors/1099. They technically have to be their own business with all their own tools/equipment, and work at their convenience(basically); you are just there to provide the work essentially. I would discuss this with a tax professional and someone that does payroll, etc. There are a lot of costs/liability involved with an employee, especially if they don't workout for your business. I would say starting with someone on a part time basis will be the simplest way at first, since you don't have to file as much paper work for taxes, nor offer too many benefits. Otherwise, if you just need help from time to time, you can 1099 another detailer that you trust.

 

[Scott@IncrediblyDetailed]

You need to be carefully trying to use employees as independent contractors/1099. They technically have to be their own business with all their own tools/equipment, and work at their convenience(basically); you are just there to provide the work essentially. I would discuss this with a tax professional and someone that does payroll, etc. There are a lot of costs/liability involved with an employee, especially if they don't workout for your business. I would say starting with someone on a part time basis will be the simplest way at first, since you don't have to file as much paper work for taxes, nor offer too many benefits. Otherwise, if you just need help from time to time, you can 1099 another detailer that you trust.

:dblthumb2::dblthumb2::dblthumb2::dblthumb2:

 

[Kamakaz1961]

The determination of independent contractor vs. employee is ultimately made by the IRS, not you. There are significant responsibilities on your end when filing taxes for independent contractors and for employees and those requirements differ. When in doubt, the Service tends to fall on the side of characterizing "helpers" as employees. Here is the criteria that the Service uses.

Independent Contractor (Self-Employed) or Employee?

:iagree:My situation was a little easier to determine contractor or employee. Remember, the owner is responsible for payroll, hourly or salary wage, payroll taxes, employer and employee taxes, overtime, breaks and hours worked. Regardless if you have a job or not, they get paid; regardless!

An, IC gets paid per job they are responsible for their taxes and you have a IC contract. Mine is IC. It's real easy for me, they work in the same field at another place. They can set their own hours. There are ways you can make sure you get the most of them with company policy, etc.

Would I want employees....NO

 

[slimnib]

Do you guys who have employees pay hourly and actually have them as an employee of your business or do you pay them per job performed and basically as a contractor where they report the income on their taxes (forgot the formal name)?

If these people work for you in your place of business on a regular basis they will likely be treated as employees by the government. If you missed classify them and the government picks up on your error it will cost you penalties and interest on the unpaid payroll taxes etc.

So before you do any thing hire your self a competent CPA, or tax attorney ( not just an accountant ) to advise you on how to proceed. The people on the forum seem very smart but it is not their profession.

Get profession help.

Harv