10/04/2024
🚨 ⚠️ Tip of the day for Protection Professionals 📢 👂
Sometimes security companies offer to pay you "cash" or "1099"; here are some of the pros and cons for that.
✔️ Advantages of 1099 pay:
- Slightly more pay in your paycheck (no taxes deducted, yet).
❌ Disadvantages of 1099 pay:
- You pay all the taxes all at once when you file your income tax return.
- You assume full liability (No GL insurance).
- No protection if injured (No Workers Comp).
- Is likely illegal for security officers per most states' laws and violates Federal Tax Code.
🤔 ❓ Why companies want to pay you "1099":
- Company pays NO taxes on your pay. Zero.
- Company has significantly lower GL insurance costs as you are not covered.
- Company assumes zero liability for anything that happens while you work.
- Company is not responsible for your safety, well-being, training, licensing, etc.
📣 A 1099 is designed to be used when one company subcontracts another company which has its own GL insurance, Workers' Comp, and payroll taxes, not for individuals working a post, gig, or "contract".
DISCLAIMER: This is not legal advice. If you have any questions please consult an attorney or a tax professional.