Can I (as commander of the American Legion) put my cook under contract and issue a 1099?

[Lisa995]

You're hiring a cook?  Are you asking what the difference is between hiring someone as an independent contractor and issuing them a 1099 vs. hiring an employee and issuing a W2?

[SweetieJean]

Why does your screen name say Employee in red?  Are you a TT employee?

[61basic]

I used to work for TT, up until 2 yrs ago.  Still have good friends there!  And yes, I basically need to know if a cook is eligible to be hired as an independent contractor as opposed to an employee.  Thank you for your help!

[Lisa995]

It will depend on the particular situation.

<a rel="nofollow" target="_blank" href="https://www.irs.gov/newsroom/understanding-employee-vs-contractor-designation">https://www.irs.gov/n...>

[TaxGuyBill]

It would be extremely unusual that a cook would qualify as an Independent Contractor.  I would say there is a 99.99% chance they are an employee.  That means no, you can't issue a 1099, they need to be on payroll with a W-2.

[61basic]

That's what I was thinking as well.  We have offered her a contract for kitchen manager, and the 1099 is a condition of acceptance.  However, after reading the IRS rules, it would appear that she would be an employee by IRS standards.  With the signed contract, would that indicate her acceptance, and would that overrule the IRS standards?

[TaxGuyBill]

Nope.  While the contract would lean a borderline situation toward a Contractor, to me, this does not seem to be anywhere near a borderline case.  Just do it correctly and hire her as a Employee.

[61basic]

Thank you all!

[SweetieJean]

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-o...