Can a company issue W2 for employee as well as 1099 if he does side work also?

May 25, 2009 by admin · 4 Comments
Filed under: Financial Services 
construction tools
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.