[Maestro]

Just went through this with my son and his company. As you probably know the Government has strict rules on what classified and employee verse a 1099 contractor.


What I know is this, if you can show they have the own insurance, and supply their own tools (which should be easy) and they set their own work schedule, and you have no direct control over their work then you should be fine. You could probably set it up cleanly that he is independent.

I was told by an accountant that employee/contractor line becomes an issue when the company has nothing but 1099's and it obviously they are not independent since they are required to work a particular schedule and the company provides them everything the need for the job.

Yes your payroll tax accounting is less complicated with a 1099, but they still have to pay all the taxes, you would have otherwise paid. The other issue is workman comp, and similar insurance for workers. With a 1099 you do not have to worry about this, but the 1099 does have to show they have coverage if it becomes an issue.