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subs and 1099's

Discussion in 'Commercial Snow Removal' started by rmartin, Nov 5, 2003.

  1. rmartin

    rmartin Member
    from mass
    Messages: 68

    as a subcontractor should i always expect to receive a 1099 form after the snow season. Will most contractors try to work a deal with the hourly rate and the tax forms. I dont mind the 1099 as long as he makes up for it in some way with my pay?
  2. BWinkel

    BWinkel Senior Member
    Messages: 103

    If he is going to expense you as a subcontractor and you make more than $600 and aren't incorporated, I would expect a 1099.
  3. kipcom

    kipcom Senior Member
    from Indiana
    Messages: 455

    Any legitimate business will send a form 1099 to anyone that has done work for the company as a sub-contractor. This is the law and the penalties and rather high if they are audited and found to be in violation. In your case, you are the sub-contractor and should recieve a 1099, providing you gave the contractor your vital info SSN or EIN/address etc. you should be recieving the 1099 for 2003 by no later than Jan.31 2004 Hope this helps you with your question.
  4. HerkFE

    HerkFE Member
    Messages: 92

    ...makes up for it in my pay...

    payup You should have negotiated up front what you will receive per hour, etc. knowing that as a sub you will be getting a 1099 and the taxes will not be withheld. He is holding up his end of the bargain if he pays you the rate you agreed to with him. If you want more now because you are now realizing that you didn't take taxes into consideration, then you should be up front with your contractor and try to renegotiate a rate. But be prepared to possibly lose that job as a sub. Once you establish a contract most guys don't like to change it, especially if it negatively affects them! :nono:

    There is more to being a business person than starting the truck and dropping the plow...use this as a lesson. If you are set up as a business with insurance and all the other trappings, then many times the taxes will be offest at years end.

    Good luck! :waving: