Part Time Employees

lornmastro

getting really busy with work was thinking about hiring some part time employees. will be seeing my acct on monday but need a quick course in employees 101,i know nothing about this stuff!! my bookkeeper was talking about making them sub contractor and giving them 1099. how about workmen comp/taxes/ect. please help me from coming off as a complete moron on monday.

George Z

Start searching now then, there is a lot of information on employees here.
Here is one thread:

http://www.contractortalk.com/showth...ight=employees

There are others about the merits of subs vs employees.

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Mike Finley

That's what he/she is for. If they can't give you a good start in understanding what you are asking about then you might consider finding another one. You accountant should be able to give you all the scoop on the tax burden issues. Your states website and the federal website should give you all the legal issues on part time employees. Stay away from your book keepers ideas about 1099ing them. Probably why he/she is a book keeper and not an accountant.

Peladu

OK, but what about the other 6 days?

lornmastro

yes i see that there is no way to sub contract/i c my workers...wow...was that an education..but i think i've gotten a good idea how to handle them...thanks all

sjm

1099 help can be risky,IRS doesnt consider someone a sub,if they report to same job for long periods of time ,use company tools or are under your direct supervision,just make sure they are decent people and not smucks,along with carrying proper insurance..otherwise if they get caught cheating on taxes you will get taking to the carpet by uncle sam.Also be very sure about the insurance thing otherwise when your insurance company audits you at end of year with you showing subs,you will be held liable.I have had both subs and guys on books and both at once,1099 its easier way to go no matching taxes workmanscomp etc,altho here most townships make you carry statutory limits in workmans comp regardless if you have someone on your books.good luck

Brushslingers

You may want to ask about casual labor limits in your state for part timers... sorta the same as 1099'in.

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lornmastro

casual labor limits???will have to do that ....thanks for the info brushslingers

Double-A

IRS guidelines say $600.00 for casual labor. Over that and you have to give them a W2 or a 1099. Your state, if have personal income taxes, or other employment taxes the employer is responsible for may have different limits. Be sure to check all of them. State unemployment, state income, state public medical care similar to medicare, etc. They can have different levels of 'casual labor limits'.

Good luck.

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Woz the Painter

Casual labor doesn't wear a suit and tie to work...

Brushslingers

Ya, per person.. heh, I think here the limit is like 1800.00 total per year, not sure though, could be 2800.00.

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