I work for a self serve frozen yogurt bar. We hire a lot of young kids as this is their first job. They don’t last long or go off to college.
I was wondering if I can begin the kids as a 1099, and then when they have worked over $599, can I put them on payroll as a W-2? Is this legal, or should I just stick with the W-2 hiring?
From an HR point of view, you need to pay them as an employee with a W-2 at year end. The reason is, they’re not independent contractors, able to manage their own work like a freelancer or able to pay their own taxes like a sub-contractor. They are employees, and entry-level employees at that. You’d be opening up potential lawsuits by trying to hire them as 1099 contractors. Here is an article that may help:
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