1099 vs employee - Cleaning Talk - Professional Cleaning and Restoration Forum
 
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post #1 of Old 07-25-2014, 11:01 PM Thread Starter
jnj
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1099 vs employee

We are a small business 3 employees... commercial maintenance. How does everyone handle the employee classification? do you 1099 and treat as a subcontractor giving them a building to clean with a set amount of pay and they cover there own workers comp? or do you spend the extra $ to obtain workers comp to cover yourself in the event, and classify as employee. would like to know what everyone else is doing. thanks everyone in advance.

JNJ
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post #2 of Old 07-26-2014, 12:20 AM
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Keeping it all legal is how I sleep at night! If a subcontractor then withhold no taxes but must have liability and workers comp. If not then pay as employee and pay 30% less to cover social security and other taxes, workers comp. and liability insurance costs.
Peter Weiss
Total Maintenance Services
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post #3 of Old 07-27-2014, 09:43 AM Thread Starter
jnj
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Thank you for the info... so we can 1099 our employees and carry our own workers comp insurance to cover them in the event they they get hurt on the job? any idea on what the cost range would be to take out a policy on three employees, each one makes approx 800 mo. in wages... ?
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post #4 of Old 07-27-2014, 11:52 PM
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We don't 1099 our employees because that is treating them as subcontractors unless they have the proper insurance. We put employees on our payroll and give them a W2 form at the end of the year.
Peter Weiss
Total Maintenance Services
www.totalservices.org
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post #5 of Old 07-28-2014, 08:51 AM
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Wow, such a great information and I think I am doing all messy and have not done things in an arranged way. Thanks for an eye opener to me.

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post #6 of Old 08-02-2014, 03:26 AM
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It can get VERY messy if you have employees but you do their paperwork as if they're contractors. The law and the IRS are getting quite picky about this, whereas it used to be looser. You will win in the long run doing things the right way. Pushing costs like worker's comp on to your team members will just lead them to ask for more money anyway.
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post #7 of Old 08-07-2014, 11:19 PM
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Its all very easy..... do it this way and you will never screw it up.

If you buy anything for them.... insurance... a bottle of window cleaner.... a rag... anything at all besides a friendly bottle of Dr. Pepper.... they are your employee so you must treat them as one. Do you train them? They are your employee. Do you tell them they can't get their own jobs or work for another cleaning service? They are your employee.

If they buy all their own stuff and you give them almost no direction except what job to do on what day... and they might have other jobs working for other cleaning companies or for their self they are your sub contractor. And yes, they must have their own insurance and all that crap.

That's the easy way to remember, not the official way.
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post #8 of Old 09-09-2014, 02:27 PM
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Quote:
Originally Posted by sprintcar93 View Post
Its all very easy..... do it this way and you will never screw it up.

If you buy anything for them.... insurance... a bottle of window cleaner.... a rag... anything at all besides a friendly bottle of Dr. Pepper.... they are your employee so you must treat them as one. Do you train them? They are your employee. Do you tell them they can't get their own jobs or work for another cleaning service? They are your employee.

If they buy all their own stuff and you give them almost no direction except what job to do on what day... and they might have other jobs working for other cleaning companies or for their self they are your sub contractor. And yes, they must have their own insurance and all that crap.

That's the easy way to remember, not the official way.
Great information
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