Pros and Cons of 1099 versus withholding
Other than the most obvious, what are the pros and cons of 1099 versus the company withholding taxes on a workkamper position?
Forum Discussion
Wanderingbob, I believe the WesternPark has done a respectable job of attempting to get up straightened out as to where YOU are confused on this issue. Believe me, as a successful homebuilder for many decades, I have paid more subcontractors than I can count, and spend many, many, millions doing so.I have also studied the situation at length, been grilled on the issue by the IRS (and my liability providers), and have witnessed several of my sub-contractors do battle for years with the IRS on this topic, as you might imagine, I have a bit of a clue on this topic. To say that I am "confusing 1099s and workman's compensation insurance" is laughable, at best.
Your posts really are awash with a lot of confusion and misinformation. First, a large percentage of the service industry and the residential construction, repair and renovation industry rely on illegally "misclassifying" their employees as independent contractors. This fact has nothing to do with your chosen field, or the rules that govern it. Second, at least as it applies to the laws governing my home state, if you get a 1099 to record your compensation, you are NOT covered by workman's compensation insurance. Either you are an employee, or an independent contractor. You cannot be both, and an employer cannot buy coverage for anybody but their own employees. Should be pretty self- explanatory, no? Therefore, if you are working as an EMPLOYEE, as defined by the IRS, and being illegally paid with a 1099, you are at great risk IF you are injured. I am also a bit confused as to how you determined that I stated that folks employed as contract workers are doing anything wrong or are stupid????
The whole point of the information that some of us take the time to provide here, is that a workcamper IS NOT working as a CONTRACT worker, IF they are working by the hour, working under direct supervision of their employer, using company provided tools, equipment, or vehicles, or failing to present themselves to the community as an independent contractor. This is not my interpretation of the issue, it's a small part of how the feds. have decided that the game is played.
Finally, you state in a rather factual manner that the thousands of day laborers, drivers, and others you have done business with, and are operating as independent contractors, are entitled to the same benefits as employees in the event of an accident, or injury on the job. That brings the situation into pretty sharp focus, and clarifies the indisputable fact that you REALLY don't understand what you are talking about.
Your posts really are awash with a lot of confusion and misinformation. First, a large percentage of the service industry and the residential construction, repair and renovation industry rely on illegally "misclassifying" their employees as independent contractors. This fact has nothing to do with your chosen field, or the rules that govern it. Second, at least as it applies to the laws governing my home state, if you get a 1099 to record your compensation, you are NOT covered by workman's compensation insurance. Either you are an employee, or an independent contractor. You cannot be both, and an employer cannot buy coverage for anybody but their own employees. Should be pretty self- explanatory, no? Therefore, if you are working as an EMPLOYEE, as defined by the IRS, and being illegally paid with a 1099, you are at great risk IF you are injured. I am also a bit confused as to how you determined that I stated that folks employed as contract workers are doing anything wrong or are stupid????
The whole point of the information that some of us take the time to provide here, is that a workcamper IS NOT working as a CONTRACT worker, IF they are working by the hour, working under direct supervision of their employer, using company provided tools, equipment, or vehicles, or failing to present themselves to the community as an independent contractor. This is not my interpretation of the issue, it's a small part of how the feds. have decided that the game is played.
Finally, you state in a rather factual manner that the thousands of day laborers, drivers, and others you have done business with, and are operating as independent contractors, are entitled to the same benefits as employees in the event of an accident, or injury on the job. That brings the situation into pretty sharp focus, and clarifies the indisputable fact that you REALLY don't understand what you are talking about.
