Can a company issue W2 for employee as well as 1099 if he does side work also?
smilniii asked:
My construction company subs out certain jobs and I have employees that want to do these jobs.On there own time with there own tools. Why can’t I pay them on 1099?
Seems like it should be legal in my case. The sub work is contracted out. It just happens to also be a part time employee that occasionally bids on them.
My construction company subs out certain jobs and I have employees that want to do these jobs.On there own time with there own tools. Why can’t I pay them on 1099?
Seems like it should be legal in my case. The sub work is contracted out. It just happens to also be a part time employee that occasionally bids on them.
My husband does strucial steel detailing here in town and he used to do side work for other companies all the time. He would only get a 1099 at tax time. He never got a W2 since he wasn’t actually on their pay roll.
I would contact your local Employment Department and ask them how they suggest you do that so that way nobody could come back on you about anything being done wrong.
Good Luck
Hi, I’m in HR. You can legally only receive one or the other, a 1099 or a W2, from an employer. You are either an employee or you are not, it’s that simple. If an employee wants to do extra work on the side and you agree, then they get paid on their same pay check for the work. It’s up to the company’s internal payroll coding and billing to sort out what money is from what fund and for which job. When someone is your employee all the work he or she does for you goes through payroll on a W2, it doesn’t matter if it’s outside their normal job functions. If you use a company like ADP for payroll, they have a system that allows you to input pay from different departments and job codes. If you do it yourself, you’ll have to account in your books for the different pay sources.
There are certain situations when an employee can receive a W-2 as well as a 1099. The secondary job must have nothing to do with their first job and they must be able to do it at their discretion. The best example is an office worker also owns an office cleaning company. The Office Cleaning company is separate and can be contracted by the company to do the cleaning after the employees normal position is done.
You can and should. The rules as the IRS says is an employee is someone that you provide either a place of employment with everything they need to do the job, or a person who works for you outside of an office or building and your provide their tools. If it is a contractor, which would get a 1099, they provide their own equipments, tools, etc., to do the job on their own for you. Hope this helps, my son has both working for him employees and contractors who want nothing to do with being an employee. There are benefits to contractors when they are self-employed.