QB Issue Resolution:

“as in what defines an employee or a subcontractor in terms of rate/unit etc. of pay.”

Paying Hourly is not really part of this. I charge by the hour, for instance.

Employee or Independent Contractor includes some tests to examine the relationship. Examples are Fed and State, like this:

Do they work for other general contractors, or just you?

Do they have their own tools and equipment?

These are part of the “are they Independent” and running their own Business, test.

If they do something wrong, or damage the property, or break equipment, who is liable for fixing it? This is part of the “At Risk” test.”

Do they come and go by telling you, or do you tell them? This is part of the Supervision test.

As for Worker Comp, in some States, you still are liable for WC when the independent contractor is on your job site, anyway. WC is not a test. It is a fact of doing business.

Worker Misclassification is a Huge concern; your own Job Service or Work Force Center or Dept of Labor can help you. You might have had it wrong all along.

Resolution for Issue 'I have been paying my subcontractors by the job for two years and using 1099’s. I would like to begin paying them an hourly rate and still continue to use 1099’s as opposed to starting to with hold taxes, pay workman’s comp. etc. My subcontractor’s are onboard with my decision. I just need to be sure of the legal aspects of doing so, as in what defines an employee or a subcontractor in terms of rate/unit etc. of pay. Thanks.' available: Yes (Solved).
Source: Intuit Community forum.

I have been paying my subcontractors by the job for two years and using 1099’s. I would like to begin paying them an hourly rate and still continue to use 1099’s as opposed to starting to with hold taxes, pay workman’s comp. etc. My subcontractor’s are onboard with my decision. I just need to be sure of the legal aspects of doing so, as in what defines an employee or a subcontractor in terms of rate/unit etc. of pay. Thanks.: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

Support for Employee or Independent Contractor
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Error Recovery for Employee or Independent Contractor [Canada]
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