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 fact that you issued a 1099 will help in your defense. However, just doing the 1099 will not be enough to show there was no employee relationship; you could still be liable if it's found you misclassified the person.

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

Tagged With: 1099 Subcontractors,  General Business