Hiring help for the 1st time...

[beley]

I'm about ready to hire a technician to assist on a part-time basis with install, configuration, troubleshooting, security, etc. Also may have to do some tech support on a per ticket basis.

So, I was wondering how many of you have employees? I've contracted work out many times and just done a per-project contract with a few people, and given them a 1099 (??) at the end of the year (or some form).

I know there is a lot involved in actually hiring an employee, such as FICA, Social Security, federal/state income tax, etc. I've managed a business before so I'm familiar with all of that. My question is... is there a legal way to get around that? I don't want to go through all that for just a couple hundred dollars a month I want to pay someone. It seems a little too complicated.

Anyone have any ideas?? Thanks!

[xerocity.com]

If it were only a couple hundred dollars a month I would just 1099 them. I wouldn't worry about all the other legal stuff.

However, if you are planning on offering them benefits + 30-40/hrs per week than you should just put them on your payroll.

[JeremyV]

As Joel said, definately just 1099 them if they are more or less just doing odd jobs, different hours, tasks, and the money involved is less than about 1000/month. But if they will be more of a full-time sort of staff, regular hours everyday, etc... it may be better to set them up as an employee.

I have always just done 1099's, and even currently, I am an "employee" of a small software company that does some consulting/tech support for them, and I am still getting a 1099. Infact, I even have a set wage per hour, although they are flexable. At times I can make 1500/month from this, and they just send me a 1099 at the end of the year.

For both parties involved, this is much more convient. The employer (you) has less paperwork, records to keep, etc... and the employee gets a check at regular intervals, and they can worry about doing their own taxes, and doesn't have to worry about you taking money out each pay period to cover those things.

Like you said, if you are only paying this person a few hundred a month, it really won't be worth the hassle for getting them enrolled as an employee.

[Jay Suds]

Definately 1099 your helper. A decent payroll service will likely cost you at least $20/mo and up to $60/mo, even for just one employee. If you only forsee spending $400/mo or so, you could be looking at spending 10% of your payroll budget on payroll processing services, not such a good thing.

[TowerHost.com]

I'm a bit at a loss here, what is 1099?
I'm looking to hire some tech people part time as well with minimal hours just like beley.

[suppleSupport]

Originally posted by TowerHost.com:

I'm a bit at a loss here, what is 1099?

It's the tax form ya fill out if you're not actually an employee but make more than $600/year.

[JeremyV]

http://www.irs.gov/pub/irs-pdf/i1099m02.pdf

[dynamicnet]

Greetings:

We have a number of full time employees.

In the begining we had some part time, and then more and more full time.

I heartily recommend an employee handbook; and if you hire sales and marketing people, a separate "sales and marketing" hand book that goes over (in detail) how they are paid, when they are paid, handling expense reports, etc.

Do try and conduct face-to-face interviews (not phone or email interviews).

Do check references; you might be amazed at what people try to do in that regard.

If you want to go the 1099 route, do check with your accountant and possibly an attorney. If you are their only source of income, the IRS may deem you their employer respondible for payroll taxes, etc.

Thank you.

[Robert]

This is a very good thread filled with great recommendations.