Beware of the 1099 trap when bringing on help! Written by Viall Insurance Agency on Jun 28, 2019
Payroll taxes, withholding, overtime pay, workers compensation and benefits – even headaches over managing hiring and firing - these are all large expenses and complexity that hold business owners back from bringing on employees. Some employers try to avoid the complexity and cost by labeling the worker as a subcontractor and paying them “on a 1099”. In some businesses, that can work, however you need to be very careful about mislabeling an employee as a contractor.
1099 payments go to independent ...