2009 Independent Contractor Reclassified

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  • taxea
    replied
    With all the companies around that will provide the client with long-term or short-term workers, I suggest that my clents hire through them. That way the agency pays the worker, handles all the payroll taxes, and issues the W-2.

    Your client pays the agency an amount that covers the worker's salary, etc and an agency fee for their services. I don't know how it is with Mainland conpanies but here your client can even pick the worker he wants, have the worker become an employee of the agency and the worker will work exclusively for the client for as long as needed.,

    I think this is a great idea. So much better than a temp agency or an employment agency that just finds the employee for the client and the client has to meet all the W-2 requirements.

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  • AJsTax
    replied
    But, August

    effective date means that you are also dealing with 3rd qtr issues also and must report in the correct quarters.

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  • anu31402
    replied
    Thanks for your advice

    Kay, EA

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  • ChEAr$
    replied
    Originally posted by anu31402
    I have a client who issued 1099Misc to 2 subcontractors in 2008. There were law suits and the company he used the sub-contractors for said he must issue 2009 W2s to the subcontractors and ensure all federal and local taxes are paid - that instruction came last month. I already submitted his personal payroll but he said that must be corrected to include the two sub-contractors effective August 2009.
    Do I need to just correct 4th Quarter Form 941 and original W3? Please, I need your advice on best way to go about this.

    Kay, EA
    Also add the two W2s, (you probably included that when you mentioned W3 above),
    and also deal with state unemployment tax issues (SUTA) and a corrected 940
    form.

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  • anu31402
    started a topic 2009 Independent Contractor Reclassified

    2009 Independent Contractor Reclassified

    I have a client who issued 1099Misc to 2 subcontractors in 2008. There were law suits and the company he used the sub-contractors for said he must issue 2009 W2s to the subcontractors and ensure all federal and local taxes are paid - that instruction came last month. I already submitted his personal payroll but he said that must be corrected to include the two sub-contractors effective August 2009.
    Do I need to just correct 4th Quarter Form 941 and original W3? Please, I need your advice on best way to go about this.

    Kay, EA
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