1099 Employee Benefits

[73Yrag77]

What is the name of your state (only U.S. law)? Indiana
Can I include 1099 employees on my Group Medical and Group LTD plans (I have 35 regular employees) without having the IRS declare them to be regular employees and there having to pay FICA, Unemployment etc taxes on them?What is the name of your state (only U.S. law)?

 

[eerelations]

1099 contractors are not legally employees and therefore cannot participate in benefit plans designated for employees. However, it's more than likely that you have a much bigger problem than just not being able to give benefits to your contractors. Read on.

In law, there's no such thing as a "1099 employee." There are "1099 contractors" and "W-2 employees" but absolutely no such thing as "1099 employees." Period.

If you're calling these contractors "employees" and you're feeling like you want to give them employee benefits, then there's a very strong possibility that you've misclassified them as individuals who receive 1099s. And that's illegal.

Check the IRS for the legal definition of an individual who receives a 1099 (legally known as an independent contractor). If it turns out your 1099s are really employees as defined by law, then put them on the payroll right away. And then you can legally give them all the benefits you want.

 

[pattytx]

http://www.irs.gov/pub/irs-pdf/p1779.pdf

 

[justalayman]

:
Can I include 1099 employees on my Group Medical and Group LTD plans (I have 35 regular employees) without having the IRS declare them to be regular employees and there having to pay FICA, Unemployment etc taxes on them?What is the name of your state (only U.S. law)?

I presume that was meant to be their and not there but it would properly be they.

if correct, a correction:

they already pay such taxes. It is YOU who would be required to pay whatever if they were employees.

 

[TIMMAAYY]

If you have a traditional group insurance plan you are getting hosed. There is a much better solution for you, and with the new health insurance regulation it makes even more sense to do so.

 

[eerelations]

If you have a traditional group insurance plan you are getting hosed. There is a much better solution for you, and with the new health insurance regulation it makes even more sense to do so.

Please explain the relevance of your statements to the OP's issues.

 

[pattytx]

Please explain the relevance of your statements to the OP's issues.

I have a feeling this responder sells for an insurance company. Privately-purchased insurance is his solution to everything.

I agree that his response has NOTHING to do with the poster's question.

 

[eerelations]

Okay then, please explain the relevance of your statements to the OP's issues!

 

[TIMMAAYY]

Please explain the relevance of your statements to the OP's issues.

1)The "OP" stated he buys group insurance - a mistake, even more so with the new health insurance regulation. There's a better way to provide benefits.

2) this place is called "Free Advice", is it not?

 

[TIMMAAYY]

Okay then, please explain the relevance of your statements to the OP's issues!

Health Insurance Agents, RIP - Forbes.com

The end of the group health insurance agent is coming - Articles - Employee Benefit Adviser

 

[eerelations]

No, you're being a jerk because you hijacked the OP's thread so that you could expostulate on your favourite subject. Advice is advice only if it's asked for, and someday when you learn to read you'll see the OP never asked about the availability of different types of group insurance. And until someone does ask you about this, you can take your "free advice" (i.e., "self-serving intrusive rant") elsewhere.

(And please note that I didn't ask about group insurance either, so whether or not I understood your childish posts about it is completely moot.)

(Finally, "hate to tell you this" but I know more about employee benefits than you ever will. Please tell me the name of your company so that I can ensure it doesn't show up on my list of prospective vendors.)

 

[eerelations]

If you knew how to read, you'd know that I am not an agent. If you knew how to read, you'd know that I am a (no longer) prospective client. If you knew how to read you'd know that I surely do understand the point you're trying to make.

And if you knew how to read, you'd have known before you ever invaded this thread that the point you're trying to make is totally irrelevant to the OP's question!

If you continue to believe that your information is relevant to the OP's question about the legality of contractors being granted employee benefits, then prove it. (As you've been asked to do oh-so-many times before.) Don't post anything else, just prove the relevance. You seem so sure that your information is relevant, this should be easy, right?

 

[pattytx]

There is no relevance. Zero. Zilch.

 

[eerelations]

There is no relevance. Zero. Zilch.

I know, and so does whatsisname...

 

[pattytx]

This poster obviously has an agenda. Of course, anybody with any brains isn't going to go to some unknown web site to find out what it is.