# 1099 Contracted Printer?



## hoxie (Nov 3, 2012)

I've read many articles about employees vs independent contractors and many about hiring contractors to do sales, but not any about contracting someone as a "printer." I am curious if anyone here has experience with my situation and the best way to move forward. Any advice is appreciated.

I have a small printing operation that is growing steadily. I'm a sole prop, but am moving to either an LLC or S-Corp this year. I just asked a buddy with a lot of experience to start helping me print shirt orders. He comes over when it's convenient for his schedule, mixes inks, prints the shirts etc, and goes home. He doesn't own his own printing equipment, so he comes to my print shop to do it and as long as the orders are done well and within a suitable time frame, I'm happy. 

I currently pay him an hourly rate, per job. He hasn't amassed over $600 total in payment yet but will shortly and I want to be prepared ahead of time. 

Has anyone contracted on a printer, rather than hire them as an employee? Is this possible? I thought I read that since I'm a screen printing company and he's coming to physically screen print, it makes him ineligible to be an independent contractor under the IRS. Perhaps not. I know there are graphic and web design companies that contract in freelance graphic designers...so I'm thinking this would be very similar. 

As a side note, I'm using this period as a sort of test phase, as I'm considering bringing him on as a vested, minority partner when I transfer over to the LLC or SCorp, at which point he will be an owner, not an employee or a contractor so I won't have to worry about it. Many of you will probably tell me to just do that now and avoid the headache, but lawyers and accountants are expensive and I want to save up and do it all correctly...


----------



## SunEmbroidery (Oct 18, 2007)

Here is some information:

https://www.irs.gov/businesses/smal...ependent-contractor-self-employed-or-employee

I think he's considered an employee if he works in your shop because you ultimately have control over what happens in your shop.


----------



## StarDesigns (Aug 4, 2013)

I have not experienced this in screen printing since everyone I have is an employee BUT I did encounter this in a previous business. I owned a convenience store and Subway and would have a guy that needed some work come and do "odd job" type stuff. (Clean the parking lot, change out air filters, deep clean coolers and ice machines, etc.) I paid him as a contract laborer since it was sporadic work and I only used him "as needed." Wrong! Got hit on my taxes because I paid him over the $600 threshold. The reason being: he used my equipment to do the jobs and didn't have his own company reporting to the IRS. Long story short, check with your accountant. It's probably best to go ahead and pay him as an employee. What happens if he gets hurt while working at your shop? Will your insurance pay? Probably not if he's not an employee and then you have issues with workers comp. It may cost a little to check but it'll be far less than you'll pay if a problem arises. 

Protect yourself and your business. 


-Mitchell


----------

