1099 vs. W2

[Legacy36]

I live in GA. I run a small company that provides holiday decorating for residental homes. After this x-mas season was over (which for my business last approx. 5 weeks)
I had a person try to collect unemployment. The problem is she told the IRS that she was an employee and was recieving a 1099-MISC. I don't have the people who work for me wear uniforms, they go to lunch whenever they like. If they don't show up they don't get fired, I don't require any training or skills for this job. If they need to leave a particular job at a certain time, they can. They can work at any other job during this time period (and most do since it is temporary work). I do supply the materials (lighting,decorations, etc.) but these all remain the property of the homeowner, which is then stored in there home every year. Are they ind. contractors or employees? Do they need to be filling out W-2 or 1099's like I have them doing now?

Thanks in advance.

 

[efflandt]

I have not looked into specific requirements of when to do one or the other (see irs.gov). But if you do not properly withhold and forward all necessary taxes to the government as an employer along with W-2 to employee, you should at least have them fill out a W-9, so you know if you are required withhold anything from what you will report on their 1099.