Proper classification of 1099 workers may seem like a cumbersome exercise, but it is essential to your business. At Genesis Consolidated Services, we help our clients understand the distinctions between independent contractors and employees, and enable them to make the right choices when deciding on employment classifications.

When new clients sign on with Genesis, we ask them to identify any subcontractors they are using, and we work with them to determine if they truly fit the 1099 mold. Additionally, we encourage our clients to call us whenever they are considering hiring a new independent contractor or changing the status of an existing employee. We help the client evaluate the situation to keep them in compliance with the IRS, the Department of Labor and the state tax authorities.

Much of the confusion around 1099 classification stems from the growing prevalence of at-home employment. Working from home does not automatically mean the worker is an independent contractor.

We also advise those clients who do use subcontractors to make sure that the contractors have their own workers' compensation coverage. Clients of Genesis automatically receive workers' compensation, but only for those employees who are on their payroll. Finally, we stress to our clients that they maintain certificates of insurance from all subcontractors they use.