Are independent contractors required to have their own liability insurance?

Generally no. However, you may decide NOT to work with independent contractors who don't carry their own insurance, especially if they are providing services which would be expensive for you to insure yourself (for example, construction work)....

More Information: Employee vs. Subcontractor: What’s the Difference & Why You Should Care

Tagged With: 1099 Subcontractors,  Liability Insurance

Do I have to carry workers' comp insurance for 1099 vendors?

Most insurance companies will require that you provide worker's comp insurance for anybody you issued a 1099 for, unless you have a certificate of insurance from them showing they had their own coverage. Since policies are not required for...

More Information: Employee vs. Subcontractor: What’s the Difference & Why You Should Care

Tagged With: 1099 Subcontractors,  Workers' Compensation Insurance

How do I change someone from a subcontractor to an employee or vice-versa in Quickbooks?

The best thing to do in Quickbooks is a new vendor or employee. So if you had a subcontractor named John Smith, but now he's an employee, make an employee named "John J. Smith", or "John Smith - employee". You can change how...

More Information: Employee vs. Subcontractor: What’s the Difference & Why You Should Care

Tagged With: 1099 Subcontractors,  Employees,  Quickbooks

How do I track subcontractor payments in Quickbooks?

You should enter their bills or payments as multiple line items, using separate expense accounts for materials and labor. At the end of the year it is theoretically possible to print 1099's right out of Quickbooks, but in actual practice, it...

Tagged With: 1099 Subcontractors,  Liability Insurance,  Quickbooks,  Workers' Compensation Insurance

What does an Employee REALLY Cost?

Even VERY part-time employees, with no paid breaks or other paid time off or any benefits, will cost substantially more than their hourly rate. Initially, there is the cost of hiring and training, which, depending on turn-over, can be quite high for...

More Information: What's the Real Cost of an Employee?

Tagged With: 1099 Subcontractors,  Employees,  FUTA,  General Business,  Health Insurance,  SUTA,  Workers' Compensation Insurance

Who do I need to give a 1099 to?

You should give a 1099 to any vendor who is not incorporated that you paid more than $600 to for services during any calendar year. You do not need to include the cost of materials or reimbursements on the 1099 if the vendor broke those expenses out...

Tagged With: 1099 Subcontractors,  General Business

Why should I bother doing 1099's?

Giving someone a 1099 helps confirm the subcontractor relationship and gives your business legal protections. For example, if someone you paid as a subcontractor gets into trouble with the IRS and claims you're responsible for paying their FICA, the...

More Information: Employee vs. Subcontractor: What’s the Difference & Why You Should Care

Tagged With: 1099 Subcontractors,  General Business