Employee/1099

[Al Iglesias]

What is the name of your state? FL

Hello to all and to my friend Beth:

We have a Warehouse Manager (who really doesn't manage anyone, so I don't know why we gave this title) but aside from this he is on a Annual Salary of 28,500 and last year the EVP (who is no longer with us) authorized the Warehouse Manager to also provide cleaning services in our office @ 30 per week. He gives us a monthly bill with a company named Kleen-Ryte that is not incorporated and he does not have a bank account for or an occupational license for. He just made this up. Well I have been cutting checks payable to him personally.

My question is, I will have to issue a 1099 for this at the end of the year and we were curious if there is any conflict of interest or any possible issues since he is also an employee with us.

Al in Tampa, FL

 

[HomeGuru]

What is the name of your state? FL

Hello to all and to my friend Beth:

We have a Warehouse Manager (who really doesn't manage anyone, so I don't know why we gave this title) but aside from this he is on a Annual Salary of 28,500 and last year the EVP (who is no longer with us) authorized the Warehouse Manager to also provide cleaning services in our office @ 30 per week. He gives us a monthly bill with a company named Kleen-Ryte that is not incorporated and he does not have a bank account for or an occupational license for. He just made this up. Well I have been cutting checks payable to him personally.

My question is, I will have to issue a 1099 for this at the end of the year and we were curious if there is any conflict of interest or any possible issues since he is also an employee with us.

Al in Tampa, FL

**A: an employer is allowed to hire an indivdual as both an employee and an independent contractor. Thus the indivdual would get both a W-2 and a 1099 for tax purposes.

 

[hexeliebe]

I agree with HG. And the only issue this employee is going to have is if he doesn't claim the income from the 1099 to the IRS...but that's not your problem.