Re: 1099 Contracting

Subject: Re: 1099 Contracting
From: "Doug, Data Librarian at Ext 4225" <engstromdd -at- PHIBRED -dot- COM>
Date: Wed, 3 May 1995 11:08:16 -0500

This is written in reply to Barry West's comment:

Although it is true that the government cracked down on 1099 contract
situations, it was not because contractors were not paying their fair share of
taxes. It was an effort to protect workers because employers were hiring 1099
contractors to get out of having to pay their share of the social security tax.
1099 contractors are responsible for the entire 15% while employer's are
responsible for paying half the tax for W-2 employees. If you are hired as a
1099 contractor and are then found not to qualified as a 1099 contractor based
on the new government criteria, I believe it is the employer who is held
accountable, not the contractor (If there are any CPA'a out there, please
correct me if I am wrong).
While I'm not a CPA, I did work on the procedures dealing with detasseling
crew leaders, who can be engaged on either a 1099 or W-2 basis. Our
legal beagles expressed *lots* of interest, because of the *company's*
exposure when using 1099 workers. Although a 1099 worker is responsible
for paying his or her own taxes, it definitely appears to be the *employer*
who is responsible for making the correct determination of the worker's


Doug "How may I be honest with you today?"
ENGSTROMDD -at- phibred -dot- com

The preceding opinions and positions are mine alone, and are only
coincidentally related to those of Pioneer Hi-Bred International, Inc.

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