My co-driver is starting soon and...

[dieselphreak2K]

At the end of the coming month, actually 1 week before the Expo, my co-driver will be joining me. We have alreday come to a good agreement on pay, time off etc... My biggest question is, how do i work out paying him to keep it legal as far as taxes? he'll be a 10-99 setup, as I am. I never finished the LLc paperwork, just put my truck in my personal name, so do i have to have this LLC started to consider him an employee? I will be home for a few days, so i want to find out what kinds of paperwork I need to get done while i'm back. BTW, I got no responses in the tax topics section, so i've put it here.

 

[RichM]

If you put him on as an employee you will have to withold and pay his fica and income tax. I don't think you can 1099 an employee. If he is going to be an employee,it would be in your best interests to get that LLC finshed. This way he works for the LLC, not you This way if he has an accident the LLC's assests can be taken not your personal assets.

If you are going to 1099 him I would have some type of contractual arrangement where he is a so called independent contractor working with you. Best to talk to a tax accountant about this.

 

[greg334]

Even as a sole proprietor, you can pay him as a 1099 contracted person. the thing that I was warned about is that an on going work requires some sort of contract to protect everyone.

As for an employee, I would not even consider that. You don't only have to deal with SS taxes, some of which you pay but also witholding and quartely payments to the IRS for his taxes.

 

[dieselphreak2K]

That's good to know, I'll keep him as a contracted person, and just make up a solid contract. I'm not dealing with paying his taxes. I don't suppose anybody would have a sample contract ?

 

[nightcreacher]

in making him contract labor a must is that HE IS ON HIS OWN
he must agree to not saying you tell him anything,and a contract is pretty easy
just put in it that he is responsible for his taxes,has the right to
offer his services to someone else,but should have, that he needs to give notice of intentions,and you are not to give any moneys except the percentage that you agree on,in the contract
i think tat about covers it
remember you cant be his boss,or he just must say so
nightcreacher
o/o fed ex cc