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Discussion Starter · #1 · (Edited)
Hello, all. I am relocating back to Colorado (from New York) in July and will be working for a GC in 1099 status beginning August 1st. I am coming from just one year of working as a builder's helper as a W-2 employee here in New York. Different worlds, in more ways than one.

I vaguely understand the idea of 1099 but seem to find more information on the web as it relates to sub-contractors in specializations such as HVAC, plumbing, electric, masonry, etc. What I cannot find any information about is working as a 1099 as a Helper (less specialized). Do I need to get a trade name and insurance, even if my new "boss" doesn't require it? Is he REALLY my boss if I am 1099? If I am, in fact, an independent contractor, can I work for others or make myself available as a helper to other builders in the area?

Thanks for your insights.

Tire Wheel Vehicle Motor vehicle Plant
 

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My hunch is your GC is calling you a sub contractor to avoid paying taxes and insurance. You won't be covered if you're injured on the job, and you'll be responsible for paying your own taxes, including the chunk your employer would normally pay.
 

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That's no such thing if he tells you your start time and assigns you work you are not a subcontractor
No insurance, no social security, no tax with held and I'm sure there's no workman's compensation insurance
A visit to the emergency room could kill your credit for a long time
Make the move find a real legit job the pay seem low to me
 

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The link JonM posted says it all.
No such thing as a 1099 employee.

How the 1099 IS legit is when a company is sub contracted by another company to perform a certain amount of work / job / task. My company paints, when I paint for a GC I price the work, and provide my own materials and equipment, and my employees perform the work, we work it as it fits my schedule. I pay the payroll taxes, workers comp, and on and on, all of which is figured in to the job price. At the end of the year I get 1099 from that company I performed work for. That’s is how the 1099 works.

Your new employer is trying to get around all of this and is doing you no favors, if you get hurt you are screwed. He will claim you will take more money home each check. Come tax time you will have to pay all the taxes and social security along with your boss’s share.

If your new “boss” tells you what time to be at work, provides you materials and tools, and how much you will be paid then he is your boss and you need to be a W2 employee. If he won’t do that find a GC or a company who will.
 

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Like was said already. Your GC is trying to avoid the costs associated with a full time employee.

This puts the liability on you.

Walk from that job if they won't put you on the books.
 
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A true 1099 sub can take or leave work as they please, you aren't obligated to take on any job, nor are you required to work for only one person, you can take work from anyone.

Usually you will have your own tools, your own insurance, set your own schedule, and set your price per job.
 
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I was going to comment yesterday, but you already had great responses. No reason to say it again. Then I decided to go another direction.

Ok, you are going to take a job as a 1099 employee. No such thing, but lets accept it as it is. You've already been told you need to get you own General liability insurance and work comp insurance. You also have to pay your own taxes. Someone above said 50% of your income. I always went with a little less than that, but lets stick with 50%. Taxes will be 33% anyway.

Go ahead and take the job. This gives you the freedom to take other jobs. Get out there, get slightly established. Meet as many contractors as you can. There will be more jobs coming your way.

Besides, you can't only work for one person. That makes you an employee. You can branch out to other contractors and start your own business.

Just a thought on another outlook.
 

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He will claim you will take more money home each check. Come tax time you will have to pay all the taxes and social security along with your boss’s share.
That isn't how it works at all. Go ahead and work for the guy exclusively. Come tax time, tell the IRS you were an employee and he won't W-2 you. When they determine that you were an employee, he will have to W-2 you and pay all your taxes.
 

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Discussion Starter · #11 ·
Thanks for the note, NYCB. This is kind of what I was wanting to do, by design. Because I will be spending extended periods of time in New York (my partner lives here), I don't want to put an employer out by taking off for weeks at a time but I also like/need to be able to take off when I want and do other things (eg remote EMS assignments).

I was more curious about the aspect of being a helper vs an experienced/specialized trade (electrician, plumber, roofer). I know subs, from working with my current GC, who are experienced and have ALL their own tools. They are the "ideal" sub, but I didn't know if starting a business would make sense as someone who has SOME of her own tools, own transportation, own insurance (not yet, but I will if that's standard since a 1099 isn't covered by a GC's insurance). It would seem that being in a 1099 status, the only thing that makes sense IS to start my own business. I suppose people do it all the time, but it just seemed kind of funny to do as a helper.
 

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It would seem that being in a 1099 status, the only thing that makes sense IS to start my own business. I suppose people do it all the time, but it just seemed kind of funny to do as a helper.
Not particularly. There is a guy here that is basically a hired gun and a lifetime laborer. He carries his own insurance and takes on his own handyman work, but also bounces around as day labor for a few guys when they need extra hands.

I use him a few times a month when we need extra guys on a pour, just let him know a week ahead of time, he shows up with his boots and he's there for 8 hours to help, pay him like a sub and 1099 him. He can tell anyone no at any time if he can't do it, and just kind of keeps his days filled up with something each week.
 

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Discussion Starter · #13 ·
Not particularly. There is a guy here that is basically a hired gun and a lifetime laborer. He carries his own insurance and takes on his own handyman work, but also bounces around as day labor for a few guys when they need extra hands.

I use him a few times a month when we need extra guys on a pour, just let him know a week ahead of time, he shows up with his boots and he's there for 8 hours to help, pay him like a sub and 1099 him. He can tell anyone no at any time if he can't do it, and just kind of keeps his days filled up with something each week.
Very helpful info! Thanks. 😎
 

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@SlowBuilt

Where in Colorado?

The new builder is not your boss. You can come and go as you please.

You would register your trade name with the Secretary of State. I forgot what the intial cost is, not much, $10.00 a year to keep it. Registering the name will help you determine your tax structure. I recommend an LLC (it's how the two attorneys in my family set me up).

Insurance even if not legally required, yes.

Tom
 

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Thanks for the note, NYCB. This is kind of what I was wanting to do, by design. Because I will be spending extended periods of time in New York (my partner lives here), I don't want to put an employer out by taking off for weeks at a time but I also like/need to be able to take off when I want and do other things (eg remote EMS assignments).

I was more curious about the aspect of being a helper vs an experienced/specialized trade (electrician, plumber, roofer). I know subs, from working with my current GC, who are experienced and have ALL their own tools. They are the "ideal" sub, but I didn't know if starting a business would make sense as someone who has SOME of her own tools, own transportation, own insurance (not yet, but I will if that's standard since a 1099 isn't covered by a GC's insurance). It would seem that being in a 1099 status, the only thing that makes sense IS to start my own business. I suppose people do it all the time, but it just seemed kind of funny to do as a helper.
I'd love to have a part time 1099 helper. If you'd like to pick up some work, PM me your rates and general availability for the later part of the summer through the fall.
 

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That isn't how it works at all. Go ahead and work for the guy exclusively. Come tax time, tell the IRS you were an employee and he won't W-2 you. When they determine that you were an employee, he will have to W-2 you and pay all your taxes.
This. The guy is trying to scam the system and take advantage of you. Keep copies of all the emails he sends you where he tells you where to go, what time to be there, where to find the materials etc.
 

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The IRS defines an employee as anyone who performs a service where the employer controls both what is done and how the duties are performed.
A great primer from the Indeed website explains the difference between 1099 and W2 employees very clearly.
I suggest you read and understand it before making a commitment.

 
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