The IRS has rules that determine whether you're an employee or sub. Google them please.
1099 Law
I have been doing roof snow removal for someone else during the winter months since my operations for masonry contracting have been shut down.
we have gone a few months now and randomly he brings up 1099ing me. No contract has been signed or negotiate prior to this. I’m a bit curious on how the insurance situation works. We are working doing roof removal above 2 stories so the premium is likely fairly high for me to have a policy covering this sort of work. I’m not sure whether he even can have insurance for this sort of work considering he’s not a licensed contractor by the CSLB. Also do I become liable being his sub as a licensed contractor?
am I still covered under his insurance the policy as a 1099 sub? If I’m to be a 1099 employee and have to get my insurance coverage I will have to renegotiate our agreed upon wage or back out.
we have gone a few months now and randomly he brings up 1099ing me. No contract has been signed or negotiate prior to this. I’m a bit curious on how the insurance situation works. We are working doing roof removal above 2 stories so the premium is likely fairly high for me to have a policy covering this sort of work. I’m not sure whether he even can have insurance for this sort of work considering he’s not a licensed contractor by the CSLB. Also do I become liable being his sub as a licensed contractor?
am I still covered under his insurance the policy as a 1099 sub? If I’m to be a 1099 employee and have to get my insurance coverage I will have to renegotiate our agreed upon wage or back out.
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Wouldn’t be here if I could have found that answer alreadyThe IRS has rules that determine whether you're an employee or sub. Google them please.
did you look?
www.irs.gov
Independent Contractor (Self-Employed) or Employee? | Internal Revenue Service
Learn how to determine whether a person providing a service to you is an employee or an independent contractor.
I did actually have to look beyond that to find my answer but thank you it did lead me in the right directiondid you look?
Independent Contractor (Self-Employed) or Employee? | Internal Revenue Service
Learn how to determine whether a person providing a service to you is an employee or an independent contractor.
What kind of ins do you think you have, may or may not have ?am I still covered under his insurance the policy as a 1099 sub?
You can’t buy insurance for after the fact!
But you can be liable for any damage that might arise from the snow removal, and if he’s not a contractor, you might take the hit all by yourself!
But you can be liable for any damage that might arise from the snow removal, and if he’s not a contractor, you might take the hit all by yourself!
You are a contractor but you don't already carry insurance?
-I'm not a lawyer. You need to verify your circumstances to your state and local laws, etc.
It is highly likely that the person hiring you must carry a liability and workman's comp policy. You might be covered under that, but ONLY as a stop gap line of risk protection for the public (client). Get your own coverage.
When your "employer" issues the 1099, they will be officially flagging themselves and you to the irs for tax implications. Often times, when the insurance company audits their clients for their general liability and workers comp liability..they ask for a list of 1099s paid out. This can trigger higher premiums on those monies paid, for the policy holder when the 1099 entity doesn't have their own coverage. Most businesses require you to therefore carry your own policy, and because it is simply often the law.
Often times you need to pay for multiple months ahead to initiate a liability policy, but can get unused premiums back if canceled earlier (ask your insurance agent).
Get a policy quoted from a few places, and make sure to tell them all your doing the same type of work...so you compare apples to apples.
Yes, ask for more money from anyone hiring you.
Another route is to start an LLC..and reduce the risk of being classified as an employee. I say reduce, because laws vary.
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It is highly likely that the person hiring you must carry a liability and workman's comp policy. You might be covered under that, but ONLY as a stop gap line of risk protection for the public (client). Get your own coverage.
When your "employer" issues the 1099, they will be officially flagging themselves and you to the irs for tax implications. Often times, when the insurance company audits their clients for their general liability and workers comp liability..they ask for a list of 1099s paid out. This can trigger higher premiums on those monies paid, for the policy holder when the 1099 entity doesn't have their own coverage. Most businesses require you to therefore carry your own policy, and because it is simply often the law.
Often times you need to pay for multiple months ahead to initiate a liability policy, but can get unused premiums back if canceled earlier (ask your insurance agent).
Get a policy quoted from a few places, and make sure to tell them all your doing the same type of work...so you compare apples to apples.
Yes, ask for more money from anyone hiring you.
Another route is to start an LLC..and reduce the risk of being classified as an employee. I say reduce, because laws vary.
Sent from my SM-S908U using Tapatalk
Like the other guys posted then you need to establish if you were an employee or a sub.
Since you made it through the season without any incidents...you got lucky. Next season change your policy and charge him accordingly.
If he doesn't carry insurance....stop helping him on his jobs. If you are on site when something happens they'll go after anyone that can be liable.
Since you made it through the season without any incidents...you got lucky. Next season change your policy and charge him accordingly.
If he doesn't carry insurance....stop helping him on his jobs. If you are on site when something happens they'll go after anyone that can be liable.
He stated yesterday I would not be an employee i would be an independent contractor.Like the other guys posted then you need to establish if you were an employee or a sub.
Since you made it through the season without any incidents...you got lucky. Next season change your policy and charge him accordingly.
If he doesn't carry insurance....stop helping him on his jobs. If you are on site when something happens they'll go after anyone that can be liable.
I will not be moving forward and conducting business.
Interesting information! There was a similar situation but we usually interacted on the basis of a contract!-I'm not a lawyer. You need to verify your circumstances to your state and local laws, etc.
It is highly likely that the person hiring you must carry a liability and workman's comp policy. You might be covered under that, but ONLY as a stop gap line of risk protection for the public (client). Get your own coverage.
When your "employer" issues the 1099, they will be officially flagging themselves and you to the irs for tax implications. Often times, when the insurance company audits their clients for their general liability and workers comp liability..they ask for a list of 1099s paid out. This can trigger higher premiums on those monies paid, for the policy holder when the 1099 entity doesn't have their own coverage. Most businesses require you to therefore carry your own policy, and because it is simply often the law. Plastic https://celebrityweeks.com nose job!
Often times you need to pay for multiple months ahead to initiate a liability policy, but can get unused premiums back if canceled earlier (ask your insurance agent).
Get a policy quoted from a few places, and make sure to tell them all your doing the same type of work...so you compare apples to apples.
Yes, ask for more money from anyone hiring you.
Another route is to start an LLC..and reduce the risk of being classified as an employee. I say reduce, because laws vary.
Sent from my SM-S908U using Tapatalk
OK, the IRS USED to have about 20 questions in writing. Answering ONE as a YES meant you were an employee, not a contractor. The IRS has since let the waters be muddied and muddled. They make weird statements now instead (possibly to fine people and penalize them for tax reasons).I’m not sure whether he even can have insurance for this sort of work considering he’s not a licensed contractor by the CSLB. Also do I become liable being his sub as a licensed contractor?
am I still covered under his insurance the policy as a 1099 sub? If I’m to be a 1099 employee and have to get my insurance coverage I will have to renegotiate our agreed upon wage or back out.
Basic rules.
1. If you work for that one "Company or Person" during your tenure, you are most likely an employee, IF you work under several contracts doing that kind of work you are probably a contractor.
2.If you provide only tradesman level tools (like union electrical pouch tools) then you are an employee.
3. If you do not bid every job, and have the ability to determine when and how you will be doing the work, you are an employee.
4. If you are told when and where to be for work and given company tools, you are an employee.
5. If the job you are doing requires a license to do that work, and you do not have the license, you are an employee. (think electrician or plumber).
6. IF you have not signed a workman's comp waiver YOU ARE NOT A CONTRACTOR, you are an employee.
Anyone who wants you to be a subcontractor will either have your state LICENSE on file, or will have all insurance documents and waivers, including workers comp information on file in order to hire you. If they are not asking for these then they are USING YOU and violating the law in every state as well as federal tax laws.
The real question is ARE YOU ACTUALLY IN BUSINESS as a business and or do you intend to be in this business as a sub-contractor and did you intend to BEFORE you started working for this company? If not then you are NOT a contractor at all, never intended to be and never were.
And no you are NOT covered if he claims you are 1099. Then again, if you have given him no documents to show that you are a contractor and are not being paid in a business name, his insurance will have to cover you most likely. Then he will be in deep doo.
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