RE: W2 vs 1099

Subject: RE: W2 vs 1099
From: "Ridder, Fred" <Fred -dot- Ridder -at- Dialogic -dot- com>
To: techwr-l <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Thu, 17 Feb 2000 10:47:06 -0500

On Wed, 16 Feb 2000 Thomas Murrell wrote (in part):

>The first contract job I did, I was a subcontractor to a firm that itself
>had a contract with a major telecommunications company. I submitted
>invoices based on my hours worked every two weeks, and I was paid the
>I invoiced.
>When the time came for W-2s and 1099s to be delivered, I didn't get
>anything. When I inquired, I learned that I would get nothing. Somehow I
>assumed that since I wasn't a W-2 employee, I would get a 1099. That

The root of this occurrence may have been a misunderstanding on the part
of the contracting firm about whether they were subcontracting a company
or an individual. A company only has to prepare a 1099 form when they use
the services of an individual person who is not an employee. In recent
many companies have instituted policies that require all contractors (and
presumably subcontractors) to be companies rather than individuals, partly
to avoid the 1099 obligation and partly to avoid labor issues related to
"permanent contractors" vs. real full-time employees.

My opinion only...
Fred Ridder (Fred -dot- Ridder -at- Dialogic -dot- com)
Senior Technical Writer
Dialogic, an Intel Company
Parsippany, NJ

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