w2s vs 1099

This is and interesting thought lets say that you been in business for a while. There is so many clients that you heed extra help in getting all the jobs done.Thinking to yourself should I pay under the table? if the work is sporadic and he makes not to much money then it is ok to do this once in a while but remember if you want to run your business legally then you should check with you accountant and see how much money you can give to your help under the table.My  accountant told me its $600 per year per person before you would have to issue a 1099.

You are now making a lot of money in your business the work is now steady and you can not do all the jobs by yourself.Its now time to go to the next step so what should I do hire employees or issue them a 1099 this decision is up to you.

A 1099 is a  tax form you give people at the end of the year who helps you weather its mowing,landscaping or what ever. the people who receives a 1099 are not employees,they are independent contractors.The only thing you have to do is pay them when they complete the job.They get no benefits and you never have to pay work mans comp.When you do this you may run into a situation where some of your help would only work for you if you pay under the table. because they do not want to pay the taxes because taxes are high in self employment.

A W 2 is a tax form  you give people at the end of the year to people who helps you with your business but instead of being independent contractors they are now a part of your business they are employees.they work for a wage or a salutary and have benefits and depending on which state you live in once you reach a certain amount of employees you must provide them with work mans comp.
it is insurance to protect the employees on the job that if something goes wrong and they get hurt and have to go to the hospital that there medical bills are covered.When you do decide to hire employees, it is best to get a good accountant There is a lot involved, you have to pay quarterly your with holdings you take out of employees checks and other fees and deductibles

It is you to you in what you want to do and how much your company has if you are really slow parts of the year or you can not give your help at least 15-20 hours a week. it would be better and keep it simple and go with 1099 on the other hand if you start getting big contracts and  you are busy every day and you can give them 20+ hours then it would be best to hire employees.Like I said it depends on you and your situation.You can also do both hire a few employees and on some of the big jobs when you need more help you can bring in 1099 people you help finish the job

I have a link below if you are ready to hire employees

SBA info to hire employees

I hope this helps you take care and God Bless