Can I do a 1099 instead of w2?

[joswagon]

I run a small food truck type business. I am only open for upto 5 months total out of the year. Can I hire people to work and give them a 1099? they would tell me what days they can work each week and I would pay them by check at the end of the week.

[Harold Mansfield]

I run a small food truck type business. I am only open for upto 5 months total out of the year. Can I hire people to work and give them a 1099? they would tell me what days they can work each week and I would pay them by check at the end of the week.

Yes, you may be able to do that. Check the IRS page on it
https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee

[vangogh]

I think what you're describing are employees and not independent contractors. You can check the link Harold added, but I'd be surprised if the people you'd hire would count as independent contractors. I don't think giving them a choice of which days to work would be enough. You'd still be in control of the work and you'd be supplying all the equipment and these people wouldn't be offering the same service to others. Sounds to me like you're employees, just not for the full year.

The best way to get a definitive answer would be to give the IRS a call. The few times I needed to call them, I always found them to be very helpful.

[tallen]

Besides the IRS, you also need to check the rules in your state as they pertain to Unemployment Insurance, Worker's Compensation, and any state income tax withholding. In general the default assumption is that the people working for you are your employees, the burden is on the employer to demonstrate that they are independent contractors. The state will likely have guidelines similar to those of the IRS.

[Fulcrum]

Aside from setting their own days, do they also:

Have other clients?
Bring their own tools and equipment?

Have you considered interns or co-op students from the local schools? You won't have to pay them at all.

If you're doing this, do it right. Set it up properly and stop trying to save a penny when the odds are that your actions are going to cost you a dollar.

[nealrm]

At first glance, I would say no. You are hiring them to work for you, paying them based on time, providing them all the equipment and there is not a chance they will loss money; so they are employee.