Yep, I get all hostile about the phony 1099ing of "contractors". It's wrong. You are stealing from everybody. :evil:
But there is nothing wrong with hiring a Hispanic you suspect may be illegal. The government does not require you to verify their status, and quite frankly, they don't care. Just do the right thing and withhold. And don't let them claim ten dependents. The Feds want you to keep it to a maximum of four, if I remember correctly.
In other words, the Feds have been looking the other way for many years with regards to illegals. For example, you are required to photocopy ID and SS cards and keep them in your records. Let's say an illegal furnishes you with the necessary documentation when you hire him. Then, after tax time, the IRS sends you a notification that one of your employees has a bogus SS number. They "ask" you to address this with your employee, but you mustn't punish them, which obviously includes firing. You are "requested" to recommend the employee to fill out IRS form W-7, which is specifically designed to provide valid SS numbers to illegals. But it is optional. Are you starting to get the joke? Is this the IRS we know and love? The bogus SS number notification from the IRS can be canned, circular file #13.
The only thing I want from hiring illegals is that they must get paid a fair wage, and that the employer withholds (and pays the Fed), while not allowing excessive dependent claims.
I know these guys. They send money home, sure. But they spend plenty, and if you all help with wage taxes, we all win. In fact, someone should do a market study on the price of beer in concentrated areas of illegals, lol. Some of the illegals I've been around have prolly drunk enough to pay for a beer distribution center our company built. :Thumbs:
And BergenBldr, the threshold for the 1099 is something like $500.00 per year. If dude needs a quick hand, that threshold is not crossed, and there is nothing to worry about. Just be sure to pay him with a check he can cash at the liquor store, or whatever, so it reflects on your company's earnings correctly. I never understood why people with a business pay cash.
My next point was that once your payments to this worker exceeds the threshold, THEN HIRE HIM. DO NOT 1099 HIM BECAUSE THAT IS WRONG!
Ahem...excuse the shouting