1099 Contractors

tracey

We are a small (less than 50 employees) aviation firm that hires
a substantial number of contractors, mainly as temporary mechanics for
current projects. Some are on the job for short assignments (2 weeks),
and others remain for months, sometimes exceeding a year. They are paid
cash, and issued 1099's at year end. I am very unclear about the
potential exposure here - should these folks be "hired" as temporary
staff, and put on our regular payroll?

sandra_d

If these people dictate basically everything about their work (when they come in, how they fix it, using their own tools, and receive basically no direction, training, guidance, or evaluation of their performance by your organization) considering them contractors might be ok.

If, on the other hand, you specify the who, what, when, where, why, and how of the work to be done, such as providing the tools and equipment they use, dictate their work hours, extend to them training opportunities, etc., then they are probably employees.

There is good information available from the federal government, so am assuming it can be accessed on-line ... try the Department of Labor as well as the IRS.

tracey

Thanks so much for your reply - this will take some study!!