Hiring a 1099 Employee

[teerwater]

I'm ready to hire a contract employee (1099) for outside sales, and don't really know what I need to do (paperwork stuff). Anyone know what paperwork I need as in government forms, contracts etc??


Dan

[Dan Furman]

This page - Independent Contractor (Self-Employed) or Employee? (http://www.irs.gov/businesses/small/article/0,,id=99921,00.html) - is a good place to start, because the first thing you want to do is be very certain whether you are hiring a contractor or an employee. I have found that most people who think they are hiring an independent contractor are actually hiring an employee (because they want to dictate hours, days worked, pay rates, etc), and the results/penalties can be very harsh.

[Steve B]

What Dan said. Many people hire a "1099 Employee" to avoid paying taxes and benefits. When they do this, they're already violating the spririt of the law. A contractor may be a good choice for you, just be sure it's truly a contractor relationship. For starters, don't call them a "1099 employee"