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Video instructions and help with filling out and completing 1099 subcontractor requirements
Instructions and Help about 1099 subcontractor requirements
Hey everybody it's Jay Burnham and this is the real Jay Burnham so welcome to another exciting episode of the real Draper so so today I want to discuss to you something that came up the difference between and the pros and cons between employing workers and and contractor workers all right so what is best well that is the question you're going to have to answer for yourself but for me I knew subcontracting workers I put my guys on 1099 I pay them once a week and I give them a schedule so when they're supposed to be here and I go from there but you got to be careful on the 1099 because if they're only employed by you they're only working for you and they don't have some sort of other income the IRS can come and say actually they're employees and now you always draw these taxes so when you're doing 1099 you got to make sure that you're being safe and smart about this and you're hiring guys and making sure that they have enough time to go and get some other kind of work and they should be doing and getting some other sort of income so that they're not quote-unquote and I'm putting in air quotes they're not official employees all right so the present cons well the pros and cons of hiring a regular employee on a 95 type of hourly thing is one you've got somebody that's employed he's comes in you give them the schedule comes in rocks and rolls and that's great you know they come in they hire in they do whatever they do they're an employee the the cons against that is they're all your responsibility at that point as well they're hiring a fire and it's at will you know it's it's there that you get they damage something they're still something there's no recourse where it's all on you you know so all you can do is you know fire them and then maybe call the cops if you're lucky if there we'll do anything about it and then you know then you got on your insurances that you've got to have on and we've got to have workman's comp you're going to have to have social security and all that good stuff for them right um there's a lot to be said and you definitely you know if you get up to the point of making enough money and affording it of course I think at that point you're you need to be making like a good half mil or more a year to be able to afford to put people on a payroll at least the workers maybe you can put people on payroll for your office workers that's fine because that's a little different you could do it it you know you can do it a part-time basis for your office work for so many who comes in and handles.