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issuing 1099s, "hiring" other contractors...

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smnornes

Junior Member
What is the name of your state? Minnesota

Hello! I'm lookiing for some answers. I am an independent contractor and receive a 1099 each year from the company I so business for. I am considering "hiring" two other (independent) contractors to work under me, whose income would have to be routed through me (I'd get paid, then pay them their share.) Our total incomes would be reflected in my 1099. Can I turn around and issue them 1099's and take their pay as an expense somewhere for myself? (Can you tell I am VERY green at this!?!?) Are there any other major issues I'd have to think about in doing this? Thank you for any help or direction on this!

Smnornes
 


tdavidl

Member
yes you can do this, happens all the time in the construction industry.

the only potential problem maybe in an audit. if an agent believes you have employees & not ind contractors that can be a hassle. consult with a tax professional with your specific business\industry\circumstances before proceeding.
 

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