W2 Employee vs. 1099
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W2 Employee vs. 1099 (by Johnny B. [MA]) Jun 21, 2022 7:27 AM
       W2 Employee vs. 1099 (by Ray-N-Pa [PA]) Jun 21, 2022 7:49 AM
       W2 Employee vs. 1099 (by Ken [NY]) Jun 21, 2022 9:28 AM
       W2 Employee vs. 1099 (by Small potatoes [NY]) Jun 21, 2022 10:44 PM

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W2 Employee vs. 1099 (by Johnny B. [MA]) Posted on: Jun 21, 2022 7:27 AM
Message:

I was talking to an owner of a 20+ unit property the other day and they were talking about how one of the tenants is essentially a property manager that the owner hired as a true/legal W2 employee (workmanís comp, etc.). I asked the owner why they went the W2 route versus 1099 route and didnít really understand the answer. Can anyone enlighten me why a landlord would go the W2 route versus 1099 with a property manager thatís also a tenant living on the property? Is one more favorable than the other in terms of cost, liability, etc.? --107.77.xxx.xxx




W2 Employee vs. 1099 (by Ray-N-Pa [PA]) Posted on: Jun 21, 2022 7:49 AM
Message:

The IRS has a test that is a series of questions, about 25 of them. They include do you set the hours, do you provide tools, do you provide a uniform, can the contractor do the same job elsewhere with others during the day.

The IRS makes more money on employees than contractors.

For the investor, I want to be the only employee for my company as I want to max out the SD Solo Roth 401K

--24.101.xxx.xxx




W2 Employee vs. 1099 (by Ken [NY]) Posted on: Jun 21, 2022 9:28 AM
Message:

Ray,you can always create a second company just for the purpose of hiring the employees.

You would have workers comp on an employee,i had an employee get hurt on the job and comp paid everything,no getting sued by her and fighting.In the case of a property manager they have to be a licensed broker or be an employee on the books so this keeps it legal to have that person collecting rent.As an employee you can maintain much tighter control over there hours etc.It is not that big of a deal to hire someone,Paychex corp took care of everything for me when i had employees on the books --74.77.xx.xx




W2 Employee vs. 1099 (by Small potatoes [NY]) Posted on: Jun 21, 2022 10:44 PM
Message:

the distinction is do they do what they do for you elsewhere and while they are w you are you directing them in any way. my friend got jammed up by a guy that worked w him as 1099 and when he didn't get more money he filed a complaint and my friend had pay fines for avoiding workers comp n payroll tax. in the end it sunk his carpentry shop.

--172.58.xxx.xxx



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