Grousing about Workers' Comp - Which of your 1099 contractors are actually W-2 employees?

Posted by CircuitGuy 11 years, 1 month ago to Business
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Everything related to payroll is annoying. I wish I could legally just hand people C-Notes and they could take them over to the taxing authorities and hand of a third of them. Maybe that's ridiculous, but how about allowing us to just pay with traceable checks that automatically inform the IRS when you deposit them?

My payroll is unfortunately way down, and my Wokers' Comp provider is on my case for all kinds of details about my revenue, draws, personal payroll, 1099 contractors. **They even asked which of the 1099 contractors were just like W-2 employees but I didn't want to pay the payroll taxes.** WTF? That's basically accusing me of lying. That's frustrating b/c I believe in taxes and I pay all taxes I'm legally required to pay. I _never_ 1099 someone, even BABYSITTERS for my kids, who are legally W-2 employees. Everything's above board. The more money we report having paid in wages, the more people who call us to ask you if those numbers are really right. Someone operating under the table doesn't deal with these calls.

"This shows you had large revenues last year, and this year it's a quarter of last year's. Can that be true?" Do they think business only goes up? 2014 is going to be awesome, though, so they should call if I don't get a big Workers' Comp police next year. My wife's business is doing well at the moment. They should call her and ask why she's so amazing.

I can see why people go with a company like Paychex, but I've had bad experiences with them in the past b/c if you outsource the whole thing and something gets hosed, it's more confusing than having done it yourself and made an error.

I'm not mad at the Workers' Comp auditor. I'm just eager for things to be on the upswing around here.


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  • Posted by $ rockymountainpirate 11 years, 1 month ago
    Try being a seasonal employer. Workers Comp sent in monthly with zeros. They're fairly laid back up here and pretty much understand seasonal, but it' a major pain in the assets. Worst is the 941. If you don't give IRS access to suck money out electronically you pay a penalty when you send a check.
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  • Posted by agag1184 11 years, 1 month ago
    That rule by the Feds to make employees of contractors is forcing modern slavery. There is no real logic to why I should put a consultant on my payroll just because he/she can't find other customers.
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  • Posted by BambiB 11 years, 1 month ago
    Anyone who pays the government anything where there's a way to avoid paying... is a fool. Government isn't inherently moral, or intelligent, or just. Government is merely force, and the less you feed it, the less it can screw up your life.

    If you look at all the crap that the Feral government justifies under the "Commerce Clause" that have nothing to do with interstate commerce, you eventually realize that somewhere in the neighborhood of 85 to 95 cents of every Federal dollar spent is being spent UNCONSTITUTIONALLY. That is, the government takes your money (or borrows money in your name), breaks its agreement with you by violating the Constitution, and spends that money illegally.

    And you believe in paying taxes? Chump. Fool. Quisling.
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  • Posted by DrZarkov99 11 years, 1 month ago
    Even though you may constrain a 1099 contractor to less than 1,000 hours in a year (and if you don't then the IRS definition is that they are legally your W-2 employee), the IRS may still try to argue that contractor is an employee if your 1099 is the only income source that contractor showed on his/her tax filing. The discussion should end once you show the record with less than 1,001 hours for that contractor, since you have no way of knowing what the individual contractor's tax filing data is.

    This is only one of many opportunities to give the IRS an excuse to drive the cost of government up. Switching to a consumption tax (like the Fair Tax) ends all of that, being only one of many more sensible solutions to significantly reducing the cost and invasiveness of government.
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  • Posted by ObjectiveAnalyst 11 years, 1 month ago
    If all were issued 1099s (self employed) then they would have to write that check every quarter. This would be very bad for government which has gone out of it's way to obscure from the majority the pain and totality of their tax burden. Out of sight out of mind... If people had to pony up every quarter, taxes would be lower in proportion to the outrage. I have been saying this for decades... It was part of the statists plan all along.
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  • Posted by 10 years, 10 months ago
    Update: The company believed everything i said and sent me a refund check for the quarters I had fewer employees. I'm not angry at the Workers' Comp company anymore.

    I still think having employees could be made easier.
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