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Posted by SteveF on October 20, 2006, 7:42 am
>
> Matt Barrow wrote:
>> > Kickstart wrote:
>> >> > If the subs are incorporated, you are under no obligation to 1099
>> >> > them.
>> >> > If they are not, then technically you should issue a 1099. Whether
>> >> > or
>> >> > not you inform them of this at the start of the project is up to
>> >> > you.
>> >
>> > There really isn't that much "official" paperwork. I always make a new
>> > sub fill out a simple "Subcontractor Profile" document I came up with.
>> > I want his name and dba, his address, his insurance carriers and most
>> > of all - his Social Security number. If you have a name, an address
>> > and a SS#, or better yet a Federal TaxPayer ID #, all you have to do
>> > at the end of the year is total how much you've paid him. If it's over
>> > $600. you are obligated to send him a 1099. Once those 1099s hit the
>> > mailbox I consider my part of it done - it's up to him from there on.
>> > The important thing is - get his information BEFORE you write him any
>> > checks. If you don't, he will probably give it to you anyway, but get
>> > it beforehand and you're in control of that part at least.
>>
>> This should all be listed and detailed in the contract for sub-contract
>> labor.
>
> Contract for sub-contract labor? I've been building houses for 32
> years - know how many "contracts for sub-contract labor" I've entered
> into? For framers, roofers, brickies, concrete finishers and misc
> others - maybe half a dozen. Around here, we hammer out a price and
> both write it down somewhere. It's done on a handshake. Like I said,
> if you're worried about 1099s, get his SS#.
>
> monz
>
If he/she is a sole proprietorship, get the SSN, otherwise you will be
getting a Federal Tax ID Number.
Steve.
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