NCBEEC, Graying of the Trade

Coppersmith

Senior Member
Location
Tampa, FL, USA
Occupation
Electrical Contractor
I doubt even the IRS cares that much if I hire a fellow EC, pay him by 1099 & he reports it on his taxes.
The IRS only cares about 1099's because it's harder to collect taxes on them. There is no withholding. That's why they are strict about who can be paid on a 1099.
 

jmellc

Senior Member
Location
Central NC
The IRS only cares about 1099's because it's harder to collect taxes on them. There is no withholding. That's why they are strict about who can be paid on a 1099.
I did 1099’s with a fellow EC and 1 other guy who was self employed & managed his own taxes. The few others I hired, I used a payroll service to keep up with taxes. That was 1 of my few smart decisions. I knew I would get behind on withholding if I tried doing it.
 

oldsparky52

Senior Member
I’m pretty sure I’ve seen the board print infractions over this issue. I’ll have to check closer.
It might be the infraction was an EC with an unlimited license hiring a sub EC with a limited license to work a job that requires an intermediate or unlimited classification. That would be an infraction.
 

ceb58

Senior Member
Location
Raeford, NC
It might be the infraction was an EC with an unlimited license hiring a sub EC with a limited license to work a job that requires an intermediate or unlimited classification. That would be an infraction.
That really doesn't have any thing to do with a 1099. EC are getting fined for hiring people to work and 1099ing them at the end of the year. The IRS rule of thumb is if you hire someone and you tell them when and where to show up, how you want them to do the work and supply tools and material they are your bonified employee and you must follow the correct tax laws. I see framing contractors do this all the time and never get in trouble and there guys laugh and throw away the 1099 at the end of the year. Ether they don't realize or don't care that they are not paying in any thing to SS but those of us that do pay our taxes are now carrying the burden of them not paying their share.
 

retirede

Senior Member
Location
Illinois
That really doesn't have any thing to do with a 1099. EC are getting fined for hiring people to work and 1099ing them at the end of the year. The IRS rule of thumb is if you hire someone and you tell them when and where to show up, how you want them to do the work and supply tools and material they are your bonified employee and you must follow the correct tax laws. I see framing contractors do this all the time and never get in trouble and there guys laugh and throw away the 1099 at the end of the year. Ether they don't realize or don't care that they are not paying in any thing to SS but those of us that do pay our taxes are now carrying the burden of them not paying their share.
If they’re throwing away the 1099s they receive, they are likely not paying any income tax at all, much less FICA.

However, the payer must send a copy of the 1099 to the IRS. It should be a simple matter for the IRS to find missing taxes from 1099 income. Well, simple for you or me, maybe not for the gubberment.


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