1099 California

EDT

Can someone help me understand the ins and outs of 1099'ing an employee or link a thread for some information?

Im thinking about expanding in California and have no employees at the moment. Do I need to pay workmans comp if I 1099 someone? Or just cash them out weekly and slip them a form at the end of th eyear and have them pay their own taxes?

Do they need a business license to be able to be 1099ed?

Any link or info would help, thanks.

Romex-Racer

They do not need a business license. Are they a true independent contractor? Do they meet the IRS's definition of an independent contractor? If they don't and you 1099 them, you could, if a dispute arises, have to pay withholding taxes and comp as well.

You need to see their proof of comp insurance or exemption from comp insurance otherwise you'll need them on your policy.

In California it's unlawful for a licensed contractor to sub contract work to any unlicensed person, unless the work they're doing requires no license, like dog walking or lawn mowing. Any home improvement work requires a license.

__________________
Whoop! Whoop!