Expert: Shirley McAllister, CPP, PHR - 3/18/2010

Question
good evening, thanks for your time..I have a concrete business in FL that is a LLC. I use to use a payroll company but because of construction with the economy I had to cancel my payroll company. I have encountered a few jobs right know and don't want to have to go through payroll company again because I might just have work for a few weeks and will only have 1 employee. Is there a way I can run him through my LLC? and if so would he be 1099?

Answer
If he is an employee you cannot pay him as a 1099. You would have to pay him as an employee and pay the payroll taxes, unemployment taxes and workman's comp insurance. You could do it yourself, it is not that hard to do. Get a copy of Quicken or Quick Books and you can run a payroll for one person. If you need help paying taxes let me know. You should already have the accounts set up. You would have to set up an EFTPS account on the internet to pay federal fica, medicare and withholding taxes, A state account for State taxes and call an insurance company for a worker's comp account. Futa is federal through EFTPS and state SUTA is paid to the state with a check. You would have all the reports to do yourself each quarter. With one employee you would probably pay taxes quarterly.

You can only hire a sub contractor as a 1099 employee. If the person has his own business and pays his own taxes and insurance.

Shirley