bensurdi
Member
Each month that I see my billing statement for payroll tax I nearly puke! This got me thinking...
Previously I worked in the mortgage industry and was always a 1099 employee. I came to work each day, sat in my office, did my job and went home.
It got me thinking of how every mortgage company I worked for was able to make me a 1099 even though I came to that one job each day and did not sub contract for any other company... I was paid 100% commission.
So... Question is, does paying someone 100% commission allow you to pay them as a 1099 employee?
I've emailed my CPA about this but curious how everyone else has there technicians setup?
I know the typical rule is that if they drive your truck, use your tools, use your products, wear your uniform etc etc than they have to be a W-2 employee. BUT, the mortgage industry must know of some loophole or something because I used their phones, computers, printers, etc and was still a 1099 employee.
By setting employees up as 1099 subs it would save A LOT of money each year - thats for sure!
Previously I worked in the mortgage industry and was always a 1099 employee. I came to work each day, sat in my office, did my job and went home.
It got me thinking of how every mortgage company I worked for was able to make me a 1099 even though I came to that one job each day and did not sub contract for any other company... I was paid 100% commission.
So... Question is, does paying someone 100% commission allow you to pay them as a 1099 employee?
I've emailed my CPA about this but curious how everyone else has there technicians setup?
I know the typical rule is that if they drive your truck, use your tools, use your products, wear your uniform etc etc than they have to be a W-2 employee. BUT, the mortgage industry must know of some loophole or something because I used their phones, computers, printers, etc and was still a 1099 employee.
By setting employees up as 1099 subs it would save A LOT of money each year - thats for sure!