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Travel Time Wage Requirements for 1099 Contractors

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kalvarez

Junior Member
California

I own a sole proprietorship small business that I subcontract work out to 1099 contractors to handle overflow of calls / appointments for me on a daily basis that I pay an hourly wage to. Do I also need to pay for drive/travel time for appointments that they handle that are onsite versus remote? And if so, do I have to pay the same hourly wage that I pay for their services or can I pay a separate wage for drive time?
 


cbg

I'm a Northern Girl
If they are legitimately IC's, you pay them what the contract calls for; wage and hour laws do not apply. If the contract says you pay them travel time then you do; if it doesn't say so then you don't.
 

adjusterjack

Senior Member
Which begs the question, kalvarez, to you have a written agreement with your subs that addresses the matter of compensation?

Another issue is whether you are illegally misclassifying the people as ICs when they are really employees.
 

kalvarez

Junior Member
I don't, but will be drafting that as soon as possible, have had a verbal agreement up to this point. Thank you, I think I should consult with an attorney to review and ensure that I have them classified correctly because I had them fill out a 1099, but I want to be sure that I set this up correctly.
 

PayrollHRGuy

Senior Member
I don't, but will be drafting that as soon as possible, have had a verbal agreement up to this point. Thank you, I think I should consult with an attorney to review and ensure that I have them classified correctly because I had them fill out a 1099, but I want to be sure that I set this up correctly.
Well, there is a problem. You should have had them complete a W2 not 1099 of any flavor.

But talking to a lawyer would be a really good idea.
 

Zigner

Senior Member, Non-Attorney
Well, there is a problem. You should have had them complete a W2 not 1099 of any flavor.
Of course, you don't know that. It's possible that you're correct, but it's also possible that you're not. Furthermore, the OP is already aware of what you're trying to say.
 

LdiJ

Senior Member
I don't, but will be drafting that as soon as possible, have had a verbal agreement up to this point. Thank you, I think I should consult with an attorney to review and ensure that I have them classified correctly because I had them fill out a 1099, but I want to be sure that I set this up correctly.
Whether or not you must treat someone as an employee or can legitimately treat them as an independent contractor has a lot to do with control. The fact that you call their pay an hourly wage is a problem. Contractors do not receive wages, employees do.

If you control where and when they work, the time of day they work, supply the materials and in other ways act as an employer, they may very well legally be employees.

If they subcontract with lots of contractors such as yourself, they make their own schedule, supply their own materials and possibly have employees of their own then the may very well be legitimate contractors.

That is a simplistic explanation to give you a place to start. You also might google for the differences between employees and contractors as well.

If it turns out that they are legitimately contractors, then stop calling what you pay them a wage. It can be called a contract rate or something similar but don't call it a wage.
 

kalvarez

Junior Member
Whether or not you must treat someone as an employee or can legitimately treat them as an independent contractor has a lot to do with control. The fact that you call their pay an hourly wage is a problem. Contractors do not receive wages, employees do.

If you control where and when they work, the time of day they work, supply the materials and in other ways act as an employer, they may very well legally be employees.

If they subcontract with lots of contractors such as yourself, they make their own schedule, supply their own materials and possibly have employees of their own then the may very well be legitimate contractors.

That is a simplistic explanation to give you a place to start. You also might google for the differences between employees and contractors as well.

If it turns out that they are legitimately contractors, then stop calling what you pay them a wage. It can be called a contract rate or something similar but don't call it a wage.
Very good to know, thank you!
 

cbg

I'm a Northern Girl
And if they are employees, then wage and hour laws do apply, and there are very definite laws about when travel needs to be paid and when it doesn't. So when you know for sure what they are, if they are employees, post back.
 

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