Tuesday, 17 March 2015

Is it "legal" to label a sales employee as a 1099 and pay them a car allowance, cell phone, per diam per day and reimburse expenses incurred...

Question

Is it "legal" to label a sales employee as a 1099 and pay them a car allowance, cell phone, per diam per day and reimburse expenses incurred. all of which is paid bi-weekly same as the W-2 employees?



Answer

Yes, if it's done right. The government's test to determine if a worker can be classified as an independent contractor is repeated on many websites.



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